Organic exports reach $70M

By Phil Boeyen, ShareChat Business News Editor

Wednesday 5th September 2001

Organic meat and wool exports are surging according to latest figures.

A new survey from the Organic Products Exporters of New Zealand (OPENZ) shows the country sent $70 million of organic products overseas last year out of a total local organic production estimated at $120 million.

Of those, organic meat and wool exports have shown particularly strong growth, rising more than 250% over the previous year to nearly $4 million.

Europe continues to dominate as an export market at $22 million a year, with Asia the second biggest at $17 million, up 5% on last year. Exports to the US have risen 17% in the past two years to $12 million, while exports to Australia have remained steady.

OPENZ executive director Jon Manhire says international demand for New Zealand's organic produce still far outweighs supply with predictions that exports could grow to $500 million in the next four years.

Despite the improvements Mr Manhire admits that overall the survey shows a lower than expected increase in organic exports.

However he says this can be explained by a more robust survey methodology which has a tighter definition of organics and the fact that a number of large players don't partake for commercial reasons.

"In addition, the domestic organics market is growing at a staggering 50%a year with some growers and companies opting to supply locally rather than export."

Mr Manhire says there are two main trends to have come out of the latest survey.

"Firstly, a lot more small to medium companies are starting to export organic products into niche markets.

"The second trend we've noticed is that a number of large supermarket chains in the United Kingdom and other countries, such as Waitrose and Tesco, are demanding organic product lines to complement their conventional supplies as part of their preferred supplier relationships with New Zealand companies."

Comments from our readers

No comments yet