Organic Sector Tops $1.18 Billion – Growth Slowed By Policy Gaps Despite Strong Global Demand
Press Release – Organics Aotearoa New Zealand
Organics is delivering strong returns and long-term market relevance, said OANZ Chief Executive Tiffany Tompkins. But the sector is still working with one hand tied behind its back.
WELLINGTON, NZ – New data released today in the 2025 Organic Market Report shows New Zealand's organic sector has reached a record NZ$1.18 billion in value. This includes for the first time organic sales in the foodservice sector and reflects a 37% increase since 2020 (excluding foodservice), marking strong and sustained growth. Given the evidence of strong growth in global demand and the premium commanded by organic products, organics is New Zealand's highest-value and lowest-impact of primary production, delivering premium exports, healthier food, and stronger environmental outcomes. But the report also delivers a stark warning. New Zealand's organic sector lags behind the rest of the world due to outdated policies and lack of investment. The looming threat to the country's GE-free status also puts this success at risk.
Key growth highlights include:
The sector has grown from NZ$723 million in 2020 to NZ$1.18 billion in 2024
Exports totalled NZ$606.7 million, growing at nearly twice the rate of total primary sector exports.
Domestic consumption reached NZ$572 million, including NZ$190 million from the foodservice sector, now measured for the first time.
Certified organic land grew 4.3%, reaching 89,544 hectares
Leading export categories include fruit and vegetables (40.3%), dairy (35.3%), and wine (12.2%).
New Zealand's largest producers, including Fonterra and Zespri, are leading the way with premium organic milk and high-value organic kiwifruit, capitalising on consistent global demand for trusted, certified products. 'Organics is delivering strong returns and long-term market relevance,' said OANZ Chief Executive Tiffany Tompkins. 'But the sector is still working with one hand tied behind its back.' Far from being niche, organic production is now embedded in the strategies of some of our most successful agricultural exporters, with growing potential across other sectors including wine, meat and wool.
Despite strong performances, the report highlights critical structural barriers that continue to constrain the sector's full potential:
Only 0.6% of New Zealand farmland is certified organic, well behind global benchmarks, limiting the sector's ability to scale.
The National Organic Standard remains unfinished, more than two years after legislation was passed and despite over a decade of sector advocacy. Without it, producers face uncertainty and inconsistent recognition in international markets.
Organic equivalency agreements with key trading partners remain undone, delaying access to lucrative premium markets and adding compliance costs for exporters.
Certification and regulatory costs are rising, particularly impacting small and medium-sized producers and discouraging new entrants.
The Government's proposed Gene Technology Bill would allow the outdoor release of genetically modified organisms (GMOs), posing an existential threat to organic producers, jeopardising New Zealand's GE-free brand and risking the loss of access to premium organic export markets that prohibit GE contamination.
'This is a sector that's doing what government strategies call for – lifting export value, protecting the environment, and boosting regional economies,' said Rob Simcic, Chair of OANZ. 'But we can't lead the world with a regulatory system stuck in the past. If we get this right, organics can become a core pillar of New Zealand's future'
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