Tuesday, 05 April 2016 10:25

Organic market surges but gaps in supply

Written by 
Consumer demand is driving a surge in New Zealand's domestic organic market. Consumer demand is driving a surge in New Zealand's domestic organic market.

Consumer demand is driving a surge in New Zealand's domestic organic market.

Certified organic grocery sales through supermarkets and specialty stores have increased by 127% since 2012, according to the 2016 New Zealand Organic Market Report.

This follows a global trend and is set to continue says Brendan Hoare, chief executive of Organics Aotearoa New Zealand (OANZ), the peak sector body that commissioned the report.

"Two out of three Kiwis are now regularly buying organics. They have become part of our everyday shopping, just as they are around the world," says Hoare.

"Gen Y in particular are really pushing this and our findings show that they're willing to pay more for healthy, socially-responsible products."

Major retailers have responded to the increase in demand by either expanding their organic product range or creating their own organic brands.

However, the boom has created supply issues in some areas and Hoare says supermarkets and specialty organic retailers are increasingly looking beyond New Zealand for organic products.

"We've had reports of distributors importing fresh and frozen produce," he says.

"We know there are gaps in the supply chain and OANZ is working with peak sector bodies to address the shortages," says Hoare. "With 11% total growth per annum since 2012, the organic sector offers enormous opportunity for New Zealand to grow our economy, both domestically and in exports."

The OANZ 2016 New Zealand Organic Market Report will be formally launched at Parliament on Thursday, April 7. It includes new consumer research conducted as part of the sector's biennial review.


More like this

Organic standards already here

Primary sectors need not create new standards for animal welfare, grass-fed, GMO and biodiversity because these are already part of existing organic standards, says Brendan Hoare.

Organics exports rise

Exports of organic products from New Zealand are now worth $335 million annually – 42% more than three years ago. 


» Latest Print Issues Online

The Hound

No sh*t Sherlock

Sadly it looks like 2019 is going to be no different from last year regarding the anti-farming stance taken by…


Meanwhile, at the same time as the political activists at Bitch & Complain were publicising their dodgy survey results, the…


» Connect with Rural News