Thursday, April 25, 2024

Organics needs official backing

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New Zealand runs the risk of missing out on big trade opportunities without a Government-backed organic seal, United States organics expert Gary Hirshberg says.
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“It’s where you suffer compared with 89 other countries when it comes to the one-second look customers give your product,” he said.

“No one knows what BioGro is. A Government-backed seal is more trustworthy. It’s third-party validated and there are penalties.”

Hirshberg was one of three presenters at a Buy Pure NZ boot camp in Auckland.

The first such event to be held here was attended by representatives from 45 local companies who wanted to learn more about marketing and branding their organic products for the US organics market.

He had been involved in similar events in the US for the last 18 years and said it was pleasing to see the number and geographic diversity of those attracted. A third were already involved in organic production.

Hirshberg set up organic milk producer, Stonyfield Farm, in the 1980s. It now had annual earnings of US$400 million.

As well as investing in 20 different US businesses he now sat on eight company boards including Blue Apron, which bought NZ beef.

“If they could buy organic, they would,” he said.

But if Argentinian beef producers were able to offer an organic option that was where the company’s business would go.

“There are one hundred more examples out there,” he said.

“They are all going to ask if standards are equivalent to that of the US.”

Hirshberg said organics in NZ was where the sector had been in the US 15 years ago when sales were worth US$5 to $10 billion.

“This year we will cross the US$50b mark and if you include non-GMOs that would be US$100b,” he said.

While NZ’s agronomic knowledge and the quality of its agricultural produce was not in doubt it was clear there was not enough support for the organic sector, which in the US had shown a compounded growth rate of 20% over the last 18 years.

“This year it was 8.4%,” he said.

“But the market for non-organic products is flat or shrinking.”

The country’s largest food companies were in a feeding frenzy, buying organic companies because of their future prospects.

“They’re not doing it for kicks,” he said.

“That’s where the growth is.”

Millennial consumers wanted it all when it came to the food they bought, demanding products which were pesticide-free and fair trade.

“They’re savvy and better informed,” he said.

“Above all, they want organic.”

And there were benefits to non-organic producers as well.

“Organics can boost brand NZ,” he said.

“You have this amazing story you’re not telling in a unified way.”

Stories that appeared in overseas media about polluted waterways and run-off from farms did a disservice to NZ agriculture’s many advantages.

“Organics can be a positive halo for everything,” he said.

“A rising tide could lift all boats.”

While in NZ Hirshberg met Agriculture Minister Damien O’Connor, Environment Minister David Parker and US ambassador Scott Brown, who he knew from his home state.

The two other boot camp presenters were consultant Bob Burke and Whole Foods Market director Walter Robb.

It was planned that the boot camp would be held again next year with a group of organic producers from here also set to visit the US early next year.

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