$75m market growth good for organics

Organic Dairy and Pastoral Group chairman Glenn Mead says the results of the latest research report on the organic sector are ''very encouraging''.

Organic Market Report 2012, which was launched recently, showed the total organic market (export and domestic sales together) had grown from $275 million in 2009 to $350 million in 2012.

Mr Mead, an Otago farmer, said demand for organic products continued to grow and New Zealand was well placed to deliver more high quality foods from sustainably-managed grasslands.

However, the organic pastoral sector was facing challenges in marketing meat products overseas and in supporting organic dairy farmers, he said.

In the 10 years from 2002 to 2012, the total land area under certification increased by 128%.

In 2012, it was 106,753ha, which represented a decline from 124,463ha in 2009.

By 2012, there were more than 100 vineyards growing grapes organically, representing 7.6% of all grapevines.

The land area under organic livestock production was 92,522ha in 2012 - a 14.8% decline since 2009.

Fresh fruit and vegetables were still the most important product by value, accounting for more than $96 million (45%) of total exports.

Dairy products continued to be the second largest export category and the value of organic dairy exports has grown 33% since 2009.

Europe, North America and Australia continued to be the sector's primary export destinations, however there had been significant growth in the export value to Asia.

Two key areas of focus had been identified from the report for Organics Aotearoa New Zealand (OANZ) to focus on over the next two years, OANZ chairman Brendan Hoare said.

The first was communication around what ''organic'' meant, and the opportunities for health and wealth it presented for both producers and consumers.

The second was the need to explore ways to ''prevent the consistent and persistent misuse of the term `organic' in the marketplace'', Mr Hoare said.