The world cannot get enough New Zealand organic produce, with export returns expected to grow to $500 million in the next four years, says an organics industry association.
The organics industry's total production last year was about $120 million, with about $70 million earned from exports, according to Organic Products Exporters.
But
a survey shows an overall increase in organic exports lower than expected.
Exports were estimated to grow to $500 million during the next four years, executive director Jon Manhire said.
The organisation's annual survey of members found that exports have increased greatly in some destinations, such as the United States, and in markets such as meat and wool, which recorded an increase of more than 250 per cent on last year to nearly $4 million.
Europe continued to head the export destination list, earning $22 million a year, with Asia second at $17 million, up 5 per cent on last year.
Exports to the US rose 17 per cent in the past two years to $12 million.
Exports to Australia stayed steady.
Despite the improvements, the organisation said the survey showed an increase in exports lower than expected.
It attributed this to using a more "robust" definition of organics, and a preoccupation by many organic growers with the local market.
The domestic market was growing at 50 per cent a year, the group said.
Two patterns had emerged from the survey:
* Small to medium companies were exporting into niche markets.
* A number of big supermarkets in Europe were demanding organic lines to complement their conventional supplies as part of their preferred supplier relationships with New Zealand.
Highlights of the survey include: exports to North America rose $12 million or 8 per cent in the past two years; exports to Asia rose a steady 5 per cent.
Exports to Europe were slightly down.
- NZPA
