NZ at crossroads on organic production

By Libby Middlebrook

New Zealand is missing out on valuable returns from organic farming, the world's fastest-growing food industry, and is in danger of losing its clean, green image, according to two of Europe's largest organic growing operations.

Volkert Engelsman, managing director of the Dutch-based organic exporter Eosta, says New Zealand is investing in genetic modification (GM) trials and research when it should be concentrating on the organic growing sector.

"It is the fastest-growing food industry in the world and New Zealand is way, way behind," he told growers at the Organic Expo in Tauranga.

"The market in Europe still thinks that New Zealand produce is superior quality but that could quickly change with the GM trials that are taking place. The percentage of organic growing here is very small compared to other parts of the world."

New Zealand has 700 certified organic growers and exports are expected to generate about $65 million by 2001 - up from $6 million in 1994.

Mr Engelsman said the global organic market was worth about $US30 billion ($58 billion) in retail sales last year and New Zealand had focused only on the horticulture sector, when there were valuable returns to be extracted from meat, wool and dairy organic production.

Organics was moving out of its niche market and into the mainstream around the world. All the large European supermarkets now sold organic food.

Peter Segger, founder and chief executive of Farm Foods, Britain's leading organic food company, said he was surprised at New Zealand's pro-GM stance when other parts of the world had rejected unlabelled GM food imports and applications for GM field testing.

"There is no market for GM products in Europe and in New Zealand you are still pursuing it. You should stop it and stop it now. It will quickly ruin your clean, green image and it will be damaging to your economy."

Organic Producers Export Group chief executive Jon Manhire said that while GM testing had the potential to hinder exports, the biggest obstacles for growers lay in market access and insufficient supply.

New Zealand has 20ha of certified organic growing land, with demand for its products strongest in Asia, Europe and North America. About 70 per cent of organic exports are fresh fruit, with kiwifruit the largest seller.

Bio-Gro, New Zealand's major organic advisory and certification agency, believes there is huge potential for the dairy industry to add value to products by encouraging organic operations.

But while dairying is our biggest export earner, with sales of more than $7 billion a year, less than $100,000 of that is organic.

Bio-Gro inspector Hans Dirkse said at least 200 dairy farmers wanted to convert to organic dairy farming, but received no encouragement from industry leaders.

"There's a demand for organic dairy products but the Dairy Board is stonewalling any initiative by not accommodating certified organic dairy farmers to have their product recognised."

Green Party leader Jeanette Fitzsimons said three-year mortgage guarantee programmes would encourage more people to establish organic growing operations. It takes about three years to certify a piece of land for organic growing.

Organisations such as Enza and the Dairy Board needed to follow Zespri International's approach by investing substantially in marketing organics overseas.