Today I’ve been looking through the 2020/21 NZ Organic Sector Market Report, released in April.
The first thing to note is how I found out about it – an article in my June Farmlands magazine. That’s a sign of how ‘mainstream’ organic farming is becoming in NZ.
Another sign: Platinum (i.e. top) sponsors of the report include FoodstuffsNZ, Countdown and Fonterra.
It’s a growing segment of NZ’s ag sector, and as you’ll see below, organic is profitable.
- NZ organic sector market value is $723 million.
- 58% of organic sector output, valued at $420 million, is exported.
- The US is our biggest organic export market, valued at $86.8 million, followed closely by China at $81.8 million.
- Organic dairy is the sector leader, with exports of $153.8 million, up 55% from the last report in 2017. This represents almost 16% of NZ’s dairy exports.
- Organic dairy is where the money is – in 2020 the organic milk price paid to Fonterra organic suppliers was $10.19 per kilogram of milk solids, compared to Fonterra’s final cash payout to non-organic farmers for 2019/20 season of $7.19 per kgMS.
- BostockNZ produces 85% of NZ’s organic apples. The report says organic pipfruit sells at premiums of 5-40% depending on the market.
- Very little land is devoted to organic in NZ – 1% of all dairying land, 2.4% of fruit & vegetable land, 5.7% of vineyards and 0.39% of meat-producing land.
- 81% of NZ consumers purchase organic products at least fortnightly, with 69% of domestic purchases made in supermarkets.
- Organic products’ share of sales is still small at 2.3% of all supermarket sales. But organic products are growing at 13.8%, faster than the 9.9% increase in non-organic sales.
- Those who buy organic produce do so because they see organic products to be natural (74%), free from residues or sprays (70%) and that it benefits their personal health or that of their family (68%).
- 52% of organic buyers are under age 40.
- 1,223 certified organic operators are producing the stuff.
Great report. Everything you could possibly want to know about the status of organic food production in NZ is here, plus some fascinating insights into our leading export markets and consumer attitudes and organic purchases there.