Organic Sector Tops $1.18 Billion – Growth Slowed By Policy Gaps Despite Strong Global Demand
WELLINGTON, NZ – New data released today in the 2025 Organic Market Report shows New Zealand's organic sector has reached a record NZ$1.18 billion in value. This includes for the first time organic sales in the foodservice sector and reflects a 37% increase since 2020 (excluding foodservice), marking strong and sustained growth. Given the evidence of strong growth in global demand and the premium commanded by organic products, organics is New Zealand's highest-value and lowest-impact of primary production, delivering premium exports, healthier food, and stronger environmental outcomes. But the report also delivers a stark warning. New Zealand's organic sector lags behind the rest of the world due to outdated policies and lack of investment. The looming threat to the country's GE-free status also puts this success at risk.
Key growth highlights include:
The sector has grown from NZ$723 million in 2020 to NZ$1.18 billion in 2024
Exports totalled NZ$606.7 million, growing at nearly twice the rate of total primary sector exports.
Domestic consumption reached NZ$572 million, including NZ$190 million from the foodservice sector, now measured for the first time.
Certified organic land grew 4.3%, reaching 89,544 hectares
Leading export categories include fruit and vegetables (40.3%), dairy (35.3%), and wine (12.2%).
New Zealand's largest producers, including Fonterra and Zespri, are leading the way with premium organic milk and high-value organic kiwifruit, capitalising on consistent global demand for trusted, certified products. 'Organics is delivering strong returns and long-term market relevance,' said OANZ Chief Executive Tiffany Tompkins. 'But the sector is still working with one hand tied behind its back.' Far from being niche, organic production is now embedded in the strategies of some of our most successful agricultural exporters, with growing potential across other sectors including wine, meat and wool.
Despite strong performances, the report highlights critical structural barriers that continue to constrain the sector's full potential:
Only 0.6% of New Zealand farmland is certified organic, well behind global benchmarks, limiting the sector's ability to scale.
The National Organic Standard remains unfinished, more than two years after legislation was passed and despite over a decade of sector advocacy. Without it, producers face uncertainty and inconsistent recognition in international markets.
Organic equivalency agreements with key trading partners remain undone, delaying access to lucrative premium markets and adding compliance costs for exporters.
Certification and regulatory costs are rising, particularly impacting small and medium-sized producers and discouraging new entrants.
The Government's proposed Gene Technology Bill would allow the outdoor release of genetically modified organisms (GMOs), posing an existential threat to organic producers, jeopardising New Zealand's GE-free brand and risking the loss of access to premium organic export markets that prohibit GE contamination.
'This is a sector that's doing what government strategies call for - lifting export value, protecting the environment, and boosting regional economies,' said Rob Simcic, Chair of OANZ. 'But we can't lead the world with a regulatory system stuck in the past. If we get this right, organics can become a core pillar of New Zealand's future'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
11 hours ago
- Scoop
Economic Headwinds In Asia Considered In Zespri's New Season Kiwifruit Forecasts
, Journalist 18 June 2025 Kiwifruit marketer Zespri has updated its indicative forecasts for the current kiwifruit season, as its 2800 growers examine how well licensed varieties will bear fruit for them. Zespri was expecting another record crop for the 2025/26 season of around 200 million trays, more than half of which had already been shipped to global markets. Average orchard returns per hectare for this season are steady or higher for most varieties, compared to last year's. Orchard gate returns by varieties The highest per hectare returns were seen across SunGold at $171,000-$187,000 and SunGold Organic at $154,000-$172,000. Whereas, the lowest per hectare returns were for Green14 at $63,000-$75,000 and RubyRed at $74,000-$79,000. Higher per hectare returns were forecast across most varieties, when compared to last year 24/25's average rates. Most average returns per tray last season (2024/25) matched this season's forecast ranges - except for Organic SunGold and RubyRed, which were down. RubyRed was 75 cents lower per tray than last year. Green kiwifruit had the lowest return at $8.25 to $9.25 a tray, while RubyRed had the highest sitting at $15.25 to $16.25 per tray. Strong global demand but economic headwinds in Asia Chief executive Jason te Brake said the sales programme for 2025/26 had started well, particularly in Europe and North America where it was seeing "strong demand". He said forecasts reflected increased yields this season, improved fruit size for Green and RubyRed and extra SunGold and RubyRed volumes coming from new orchards. "This forecast is encouraging, though there are some economic headwinds in Asia, including inflationary pressures in Japan and our teams are working hard to secure good value in generally softer market conditions," te Brake said. "We've now shipped more than 110 million trays of Zespri Kiwifruit, which is over half this season's total crop, with RubyRed sales now complete. Our teams in New Zealand and in market are focused on continuing the positive momentum we've started the season with to deliver strong value back to our growers." He said overall, the outlook was positive. On a per hectare basis, all ranges increased on guidance provided in March, except for RubyRed which nudged down $3000 a hectare at the lower end of the range. However, returns were forecast to fall for Green and Organic Green when compared to last season. Grower shareholding set to increase A recent report by University of Waikato Professor Frank Scrimgeour on the risks the kiwifruit industry was facing under current governance, highlighted concern that fewer than half of the 2800 growers supplying Zespri were shareholders. "Shareholder interests are not identical to grower interests," Scrimgeour said in the report. However, te Brake said provisional uptake of the recent share alignment initiatives meant more than 60 percent of growers will own Zespri shares, up from 48 percent. "Aligning the commercial interests of growers - i.e. ensuring all growers and shareholders clearly see the benefit to them in new opportunities - will be critical to this. "With strong demand and the industry continuing to perform well we are making the right steps set ourselves up for the future and we're committed to continuing to do so." Last month, the kiwifruit marketer reported an after-tax profit of $155.2 million for the financial year, down 10 percent on last year to $173.3m.
NZ Herald
16 hours ago
- NZ Herald
Letters: Absence of economic evaluation of commercial GMO raises concerns
Photo / Food HQ Letter of the week Gene technology - at what cost? The Government is hypocritical in claiming it is over-riding local government powers for economic reasons when it is already doing so in the Gene Technology Bill without any economic risk-benefit analysis. The absence of an economic evaluation of the
Newsroom
18 hours ago
- Newsroom
The secret diary of .. Luxon in China
MONDAY 'Where are your slippers?,' Amanda said. 'You'll need your slippers.' Much is at fate for the destiny and wellbeing of New Zealand as I head to China this week to deliver a set of deliverables. 'I can't find your slippers,' she said. Other great helmsmen from history must have felt the same excitement and sense of purpose as they prepared to carry the hopes of their people and sit down to make sure they get share of mind. 'Your feet get so cold in air-conditioned hotel rooms,' she said. But it's more than the welfare of Kiwis that is at stake. These talks in China are held at a delicately poised time of increased global volatility and I have an important voice as world leaders iron out a phased launch within a wider strategy. 'If you won't help, then suit yourself,' she said. The DPS arrived. It was time to go. The great tides of history wait for no man. TUESDAY It's a very long flight to China but that allowed an opportunity to get to know the trade delegates from Zespri, Fonterra, and Supercheap Auto which stocks a variety of car batteries, air filters, coolants and more. Air New Zealand CEO Greg Foran was also among the delegation. 'Not what it used to be, is it,' I said. 'Sorry?' 'The airline. It used to be one of the world's great airlines. I led it into an era of unprecedented success but the bottom seems to have fallen out since I left office.' 'None of that is true,' he said, and left to use the bathroom. I never saw him again. WEDNESDAY We raced off out of the blocks with meetings to raise awareness of the New Zealand tourism offering in the Chinese market, and a visit to a cosmetics event to discuss regulatory barriers of skincare products. You don't want to boil the ocean by alphabetising our client contact information but at the same time you want to reach out and come away with important learnings. I was on my feet all day. They hurt and I think I might have chilblains. THURSDAY To the Langham Hotel for a Fonterra event promoting grass-fed dairy where attendees were served milk in champagne flutes. And then the Peninsula Hotel, to oversee the announcement of a new flight route between China and South America, stopping in Auckland. After that, The Do Drop Inn where reps from Supercheap Auto wowed Chinese officials with budget deals on the Tridon Coolant Temperature Sensor, Fuel Injection Air Flow Meter and the Bissell Spot Clean Carpet & Upholstery Cleaner. Our tiger team really moved the needle on that one. But it was misery to go back to the hotel. They keep the aircon on high and I just could not get my feet warm. FRIDAY A face-to-face with President Xi in Beijing—my first since China sent a strike force into the Tasman Sea without warning. I said to him, 'We have huge areas of co-operation that can advance the wealth of both countries, but we also have to acknowledge that we have differences.' He seemed to be playing Solitaire on his phone, but he gave me his full attention, and asked, 'What differences?' I thought of the possible bonanza in sales of meat and kiwifruit. I thought of the benefits of the visit to the skincare event and the excitement caused by good deals on motor oil provided by Supercheap Auto. Mainly I thought of how my feet were frozen blocks of ice, and I said, 'Nothing really. It's all good. Let's lean into our moving parts and build on our core competency!' The DPS arrived. It was time to go. They had found me a pair of slippers.
