Organic Sector Strategy Will Add $4.7b to NZ's GDP by 2030

A landmark strategy to take New Zealand's fast-growing organic production sector to the next level has been launched. 

The strategy, ‘Taking Action for a Better New Zealand’, was commissioned by umbrella group Organics Aotearoa New Zealand (OANZ) and aims to contribute a cumulative $4.7b to New Zealand's GDP by 2030 while reducing climate and environmental pollution. 

"Growth in the organic sector is better growth for Aotearoa’s environment, the New Zealand economy and for New Zealanders," says OANZ CEO Viv Williams. 

"Organics provide an established international market and brand. When combined with the energy and vitality coming from the regenerative agriculture movement, organics can make a strong contribution to the future of farming as described in the Government's Fit for a Better World roadmap.

"Our ‘Taking Action for a Better New Zealand’ strategy focuses on extension services to support more growers to meet organic standards, alongside collaboration with regenerative growers and researchers to deliver the best of both worlds.

"Active support for indigenous food and growing knowledge, through the Hua Parakore system of Māori organic certification, is also key to New Zealand's organic food story. Hua Parakore is an authentic New Zealand relationship with food and food production that connects consumers with the land in a way that's unique to New Zealand.”

The project was undertaken with funding assistance from the Ministry for Primary Industries’ (MPI’s) Sustainable Food and Fibre Futures fund. 

“New Zealand agriculture has an excellent reputation globally for its natural environment, and for food that is safe, tasty, nutritious, ethical and high quality,” says Steve Penno, MPI’s Director of Investment Programmes. 

“This strategy provides valuable guidance for the organics sector on how it can tell its story internationally, how to address current challenges and tap into opportunities, and pave the way forward to grow the sector.”

The strategy report is available on the OANZ website.

Notes for editors:

Key facts about the organics sector

  • Organic agriculture is a fast-growing sector for New Zealand, with $623 million of product generated from approximately 86,000 hectares of certified organic land.

  • New Zealand’s organics market was worth $723 million in 2020, compared to $600 million in 2017, with an average growth rate of 6.4% a year over those three years. Global sales grew at around 9% a year in the same timeframe.

  • Organic dairy is now the largest organic sector for New Zealand, with exports of $153.8 million, up 55% from 2017.

  • New Zealand is the only country that exports most of its organic production at around 58%. By contrast, Australia exports 26%, Denmark 19% and the US less than 2%.

  • Of the total value of organic products sold in New Zealand as certified organic ($302 million) an estimated $100 million is imported, much of which is further processed in New Zealand.

  • New Zealand is the fifth largest supplier of organic products into China. By contrast, New Zealand is the 33rd largest exporter by volume of organic products to the European Union (excluding the UK).

  • New Zealand’s organic agriculture sector works to the Government’s Fit for a Better World sustainability goals, which are to: reduce New Zealand’s biogenic methane emissions to 10% below 2017 levels by 2030; and restore New Zealand’s freshwater environments to a healthy state within a generation.

2022-2025 organic sector focus – recommendations from the ‘Taking Action for a Better New Zealand’ strategy:

  • Establish an organic farmer extension programme

  • Create an organic ecosystem database

  • Increase consumer recognition of organics as an effective environmental and nutritional solution

  • Support whakawhanaungatanga between Māori organic and Hua Parakore growers to extend the mātauranga continuum and increase Māori participation in organics

  • Build partnerships and collaborations between the organic sector and other agricultural industries and farmer-owned organisations to increase R&D, innovation and technology development

  • Create collaborations with organisations that carry out R&D to mainstream organic agriculture into their activities and encourage specific organic centred work

  • Create collaborations between the organic sector and government

  • Explore and develop better funding models for the sector

  • Support the development and implementation of the Organic Products Bill, standards and regulations

  • Understand international consumer segments’ changing needs.

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OANZ