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

Living on an organic island

Running an organic dairy farm is a bit like living on an island where one has to be completely self-sufficient.

Organic focus

Five years after the completion of the Organic Focus Vineyards project, Rebecca Reider reports back on soil monitoring and success stories.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter