Go green, organic growers say, and be the envy of the world Clean, green: organic peas on their way to market. March 25, 1999 The Press, New Zealand
If you are going to bet the farm, go for a proven system that's already found a market and is earning a healthy premium -- organic farming.
That's the message from organic farmers, according to Charles Merfield, who speaks for the Canterbury Commercial Organics Group.
"The answer when you're on a treadmill is not to run faster. It's to get off and find an alternative," said Mr Merfield.
His group believed there was a huge potential for organics, especially in wake of the public reaction to genetically modified food.
It was possible for a whole country, or area, to be totally organic if it had the support of research. Denmark was considering turning its agricultural production to organics, he said.
Under the bio gro and demeter international certification schemes, producing genetically modified animals and plants was prohibited.
"This could be a tremendous selling point for New Zealand and would give real substance to New Zealand's claim of being clean and green."
Demand for organic produce in key markets -- Europe, the United States, and Japan, was very strong. "Organic produce has seen growth of between 20 and 30 per cent for several years."
The Organic Products Export Group, begun by Tradenz, recorded exports worth about $29m last year. This was up 47 per cent from 1997.
Heinz-Watties along with Zespri and the Kiwifruit Marketing Board, were part of the group. "Heinz Wattie is almost desperate for organic producers. They can't get enough supply to satisfy their markets."
Mr Merfield said organic meat exports from New Zealand were beginning, but some producers believed that if they started selling organic meat, it inferred the other produce was substandard.
Research had shown, however, that companies selling organic produce also got a quality rating for the rest of their output: consumers believed the rest of their produce was also of better quality, Mr Merfield said.
Heinz-Watties had used organics to open markets in Japan which may not have been open to it without its organic produce, he said.
Genetically modified organisms had advantages -- they offered benefits such as higher yields, lower cost of production, and crops free of chemicals. However, New Zealand's commodity returns were falling.
If New Zealand did embrace GMO technology it would be in a similar position a few years down the track, he said, and organics was the only sustainable alternative.
Organic production needed more inputs, but demand for it was strong. That meant premium prices for organic produce, especially if the produce had been processed further, he said.
"Organics is a viable to very viable alternative for New Zealand."
On average organic produce was selling at 25 per cent above market rates for conventional produce, and for short periods in new markets as much as 50 per cent.
The unknown of GMO food was another negative, he said.
The Green movement would like a moratorium on genetic modification until these risks could be quantified, he said.
"Scientists tell us genetically modified food is safe and the risks are small, but risks are still risks."
There may be pressure from United States companies which have invested heavily in gene technology to accept GMO foods here, but New Zealand had said no nuclear warships, and it could say no to GMOs, he said. "We have an alternative."
The backlash in Britain against GMO crops had been strong. The number of GMO crops grown in Britain had been halved over the last few years.
"We think the group that ripped up the genetically modified potatoes here were radicals. In Britain it's not extremist ripping up crops, it's people from middle England."
This showed the height of feeling there, and the market opportunity.
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