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Tuesday, 06 March 2012 14:37

Atlantic organics deal prompts plea

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AN ORGANICS agreement between the USA and EU is a wake-up call to Government we are missing out on a $US60 billion global industry, says Organics Aotearoa New Zealand (Oanz).

Chairman Derek Broadmore says funding cuts have left NZ organics treading water despite the potential of an industry which grew globally by 10-25% per year over a 10-15 year period. 

The US-EU agreement signed in February is a “milestone”, opening up those two markets to each other in ways that have not been seen before, he says.

“They have been able to export to each other – but it has been quite complex. Now they have mutually recognised their organic standards, it’s a whole lot simpler. It’s a big encouragement for their producers to find new markets.”

Broadmore says New Zealand is negotiating with the US over an “equivalence agreement” which is similar, but it is being pushed by the Organic Producers Export Group, not Government.

“It’s a very slow process and doesn’t have a great deal of priority from the Government. Those are the sort of agreements which make trade in organics easier across the world.

 “I think the Government should show leadership in having a clear policy on growing the organic sector. At the moment it simply allows the sector to exist.” 

Broadmore says two forms of funding have been cut – for an organic advisory programme to assist farmers to convert to organics, and funding for Oanz itself, which is an umbrella group for 13 organisations.

“We’re now a completely voluntary organisation. As chairman I am trying to keep it ticking over [but]we can’t employ any staff; we’re hamstrung without any resources. 

 “We can’t do lobbying or networking with other organisations like Federated Farmers or Meat and Wool NZ. All of those bodies we had relationships with which we haven’t been able to continue.”

Organics is growing in the wine industry, but across the primary sector it is “marking time”.  

Broadmore admits organics growth has slowed globally since the global financial crisis (GFC), but still has “enormous potential”. 

Figures from 2009 – the latest available and which Oanz would like to update but doesn’t have funds to do so – showed organic exports were worth $170 million – up from $32 million a decade previously. The domestic market was worth $315m.

 “Estimates are New Zealand can feed about 20-25 million people – when you think there’s 6-7 billion people in the world we want to be targeting, in terms of income, the top 20-25 million.

“We should be out there promoting the best and most sustainable food to those high income people.”

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