NZ’s Organic Sector Tops $1 Billion as Industry Calls for Urgent Investment in Land and Policy Support

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New Zealand’s organic sector has surged past the $1 billion annual sales milestone, as industry leaders warn that a lack of investment in land and supportive policy could stall future growth.

A new report from Organics Aotearoa New Zealand (OANZ) shows the sector has grown more than 50% since its last assessment in 2020, reaching $1.18 billion in total annual sales. The industry is now evenly split between domestic and export markets, with $190 million attributed to foodservice sales, included for the first time.

This is a significant moment for organics in Aotearoa, said Tiffany Tompkins, OANZ Chief Executive. But to keep up with global demand, we urgently need more certified organic producers and more land under organic management.

Globally, the organic food and beverage market is estimated to be worth US$280 billion in 2024, with forecasts suggesting it could reach US$650 billion by 2033. New Zealand’s contribution, while growing, still accounts for a tiny fraction of this booming market.

What’s Selling and Where?

Organic fruit and vegetables remain the backbone of the industry, accounting for 40% of sales, followed by dairy (35%) and wine (12%). The top five export destinations are the United States (29% of exports), Europe, Australia, China, and Japan.

Newer growth areas include organic lamb, beef and wool, driven by increasing global interest in ethical and sustainable animal products. But scaling up remains a challenge.

New Zealand currently has just 90,000 hectares of certified organic farmland — that’s only 0.6% of our total farmed land, Tompkins noted. In contrast, the European Union is targeting 25% by 2030. We are at risk of falling behind.

Policy and GE Concerns

Tompkins said completing the national organic standard, recently approved by Cabinet, must now be a top priority. Without it, producers face market uncertainty and export challenges.

She also voiced strong concerns about the Government’s proposed gene editing (GE) legislation, which would loosen current restrictions.

Co-existence with GE is tough. The US organic sector, now worth $72 billion, has seen a huge increase in imports — 80% of their organic products are now sourced offshore due to GE contamination, she said. With our tapestry-style farming in NZ, avoiding cross-contamination would be nearly impossible.

OANZ is urging both organic and conventional farmers to speak up and oppose the GE legislation, currently before Parliament, arguing it threatens not just organics but the country’s global reputation for clean, green food.