This newsletter is published every two weeks and contains the latest news and information about what is happening in the organics sector in New Zealand and overseas.

From the Chief Executive - Dr Jon Tanner

As another year and another decade begins, I've been thinking about the bright future of New Zealand's organic sector.

Many shoppers prioritised organic purchases even in last year's tough economy, and shortly before Christmas, chefs in the American Culinary Federation voted 'organic' as likely to be one of 2010's hottest food trends.

British supermarkets have started reversing decisions which limited the number of organic lines on offer during the economic downturn, while movies like "Food Inc" are encouraging millions of people to take a closer look at the origins and ethics of food.

In New Zealand there's growing recognition that, alongside official trade barriers, farmers will face tougher requirements from their purchasers and distributors. These groups increasingly need to be able to provide traceability, quality assurance and food safety guarantees through to the end consumer.

The added scrutiny this will place on all countries' farming practices will strengthen certified organics. New Zealand's entire pipfruit industry has been moving closer to organic systems to preserve European export markets, our wine producers are moving to organic and biodynamic certification as a way to enhance both product quality and sustainability, while choosing certified organic products is internationally recognized as the best way to support the environment, animal welfare and healthy farming communities.

But although 2010 may be the year of the organic sector, OANZ is still needed as a unifying voice if we are to be heard at the highest levels. People work best when we work together, and developing stronger relationships between pro-organic consumers, businesses, organizations and government is the area where I hope to focus in 2010.

New Zealand exporters at BioFach 2010

The Organic Products Exporters of New Zealand Inc (OPENZ) is returning to BioFach Nuremberg - the world's largest organic trade fair - following a two-year absence.

OPENZ coordinated a New Zealand presence at BioFach for several years until 2007, but has since placed a stronger focus on North American and Asian markets. However this year's event, from 16-20 February, will see Fonterra and Comvita exhibiting their certified organic products in a "New Zealand" pavilion (Hall 4, stand number 4-254).

OPENZ members were offered the opportunity to participate in the stand late last year, with OPENZ offering cost-sharing, coordination and the benefits of their established relationships. Along with staff from Fonterra and Comvita, OPENZ Executive Officer Gavin Middleton will attend BioFach to promote New Zealand organic exports, meet with other national delegations and gather information about global organic markets.

Nature Baby targets Australia and US online markets

Auckland-based organic baby products company, Nature Baby, has set its sights on expanding into the Australian and US markets, with the launch of two new websites just before Christmas.

The online stores are focused on supplying customers in the two countries who have previously had to buy from Nature Baby's New Zealand website.

The company's founder, Georgia Faull, says Nature Baby already has a growing customer base in the United States and its profile got an extra boost this week when it was among an exclusive group of companies invited to provide gift bags containing their products for celebrities at the Golden Globe Awards in Los Angeles.

Georgia notes in the US a growing number of celebrities are using their influence to endorse the ethical and environmental benefits of buying organic where possible.

Nature Baby was established in 1998 by Georgia and her husband, Jacob, in what began as a quest to find suitable organic products for their own children. They discovered many other parents also had the same ideal of wanting their children to grow up in a non-toxic world.

Georgia explains, "Back in 1998 the choice of things available for babies was very limited, and most of what was around was very synthetic and unnatural. I didn't want to dress my baby in sweaty polyester so that's where our journey began, because I thought other people would surely find the same thing and want more natural and chemical free products for their babies."

Today the Nature Baby range has grown to include organic cotton and organic merino wool baby clothes, sleepwear, bedding, furniture, baby carriers, nappies, laundry products, bath and skincare products, natural remedies, organic food and feeding products, books, toys and gifts.

Its products are aimed at newborns to 7 year olds.

The cotton clothing is made in India by a company which Georgia says has "extremely strong ethical values." The cotton is grown and processed without the use of chemicals, then hand-produced in organic farming communities.

All Nature Baby's organic merino wool garments are produced from sheep that have been raised organically and have not been subjected to the conventional chemical process of dipping, drenching and scouring.

Georgia says there were marketing challenges in the early days of the company because most New Zealanders were still wary about organic products and also about the use of wool for baby clothes.

She notes, "When we first started selling organic merino, people were very suspicious of wool; they thought it would be very itchy, and hard to care for. Now people recognise what a wonderful versatile fibre it is."

As well as its flagship Auckland stores in Grey Lynn and Newmarket, Nature Baby has stockists throughout New Zealand, Australia, the US and Japan. It is also looking to expand into the UK and Europe, helped by word of mouth from ex-pat Kiwis living there.

Georgia says the online side of the business, particularly, is growing around the world. The company has continued to prosper during the recession because she believes parents who are concerned about their children's well-being are not prepared to compromise and remain committed to organic products.

Organic garden business continues to flourish

An Auckland business, which creates organic vegetable gardens in people's backyards, has grown so rapidly in the past two years it now employs five people full-time.

Sarah Davies set up the business in 2007 after she saw a "gap in the market" for people who wanted organic vegetables gardens but didn't have time to do it themselves.

Her company, Patch from Scratch, offers a range of services, from garden installation through to education on how to maintain plants organically.

Sarah explains, "The most important part of our business is teaching our customers how to maintain (their gardens) so they can use them properly themselves."

The gardens use no pesticides or synthetic fertilizers and are built in raised boxes, constructed offsite. They take less than a day to install, while DIY kitsets are also available for people who would prefer to build their own garden.

Sarah says she is surprised how quickly the business has grown, and the recession has had little effect. She believes Patch from Scratch is the only company in New Zealand offering such a service but expects others to enter the market to cater to a growing trend towards organic gardening.

She says a mix of saving money on food bills and enjoying the process of gardening motivates most people to set up organic gardens at home.

"We do have quite a few customers with serious illnesses who have been told by their doctor to go onto an organic diet," she adds

Sarah says franchises are a possibility for future growth of the business.

Study seeks opinions on Biochar

Dorothee Quade, a Masters student in Environmental Studies at Victoria University of Wellington, is undertaking a research project exploring the implications for public policy in NZ regarding biochar as a climate change mitigation tool.

Dorothee is interested in the views organic agriculturalists hold on biochar - what you have heard about biochar, if you would utilise it as a soil enhancer, and your reasons for doing so or otherwise. This will help her to identify the current views on biochar and might inform public policy.

If you would like to participate in Dorothee's research by completing the online survey, please visit https://www.surveymonkey.com/s/7S5B2FN.  For more information on the study, please contact Dorothee on quadedoro@myvuw.ac.nz or phone 04 472 1000 (extn 8374).

Organic growth spurt forecast in Australia

Organics is being increasingly tipped as the "industry of opportunities" in Australia, echoing similar positive reports in the US, Europe and other countries.

In survey findings released this month by independent global industry researcher IBISWorld, organic farming was tipped to be a front-runner in the areas of revenue and employment in Australia.

In its report on the "top 10" growth industries, IBISWorld stated that organic farming revenue was poised for a growth spurt, to increase 14.8% in 2010, raising the value to $430 million.

This placed organic farming in the top two growth industries in Australia for the coming year.

In the next five years revenue was expected to grow at an average rate of 13.4% per year reaching approximately $760 million in 2014.

IBISWorld general manager (Australia), Robert Bryant says, "While on average organic goods remain more expensive than non-organic produce, higher disposable incomes, coupled with increasing awareness of environmental sustainability and an increase in the range of organic produce available, will see continued growth in this industry."

In a separate IBISWorld report, organic farming, as an employer in Australia, is forecast to strengthen from 6.2% in 2012-13 to 11.2% in 2013-14.

Big corporates moving into organic milk production

A new report by the USDA's Economic Research Service predicts more and more organic milk will come from larger farms in the coming years.

The report, titled, 'Characteristics, Costs, and Issues for Organic Dairy Farming,' says the forces of economics are nudging organic dairy farms to become large scale, to gain some of the efficiencies of conventional dairying.

It notes most organic milk operations are small, with 45% milking fewer than 50 cows, and 87%fewer than 100. But the largest organic dairies (over 200 cows) now account for more than a third of organic milk production in the US and are far more likely to generate returns above their capital and labour costs, suggesting organic milk production will migrate toward larger operations, the report says.

It notes organic farming in general is "one of the fastest-growing segments of US agriculture"  and organic dairying is one of the fastest growing sub-segments.

To meet the strengthening demand for organic milk, its production sector has evolved, very much like the one that produces conventional milk has, the report says.

The report looks at several other aspects of organic dairy farming in the US. The full report is at: http://www.ers.usda.gov/Publications/ERR82/.

GM sugar beet likely to be planted in US this spring despite court ruling

A federal judge's finding that the US Department of Agriculture was negligent in approving genetically-modified sugar beets as safe, is unlikely to block the planting of Roundup-ready sugar beets in the US this spring.

Seed company Monsanto faces litigation from a list of opponents that includes the Center for Food Safety, the Organic Seed Alliance, High Mowing Organic Seeds, and the Sierra Club.

The parties have until February 4 to hold a settlement conference on their own, and are scheduled for a hearing on June 11, well after most Roundup-ready sugar beets will be in the ground in the western and upper Midwestern states that grow them.

The plaintiffs are hoping that discovery information the court expects to receive in March will convince Judge Jeffery White to halt planting of the next crop of GM sugar beets, expected to begin in April.

Judge White last September ordered the USDA to complete an Environmental Impact Statement on the safety of Roundup-ready sugar beets.

That decision was seen as a "procedural win" for the plaintiff groups. Since the GM beets were deregulated nearly four years ago, nearly 95% of sugar beets produced in the US are genetically modified.

In addition to concern that that genetically-modified beets could cross pollinate with organic crops thereby destroying the organics' value, there is considerable worry about other dangers from genetically modified food crops.

There are new studies coming out primarily in Europe that demonstrate genetically engineered corn varieties are toxic to organic functions. genetically engineered soybeans have also been shown to be toxic.

Diary these dates

January 28, 2010. Biodynamic Dairying Field and Discussion Day. Yvonne and James Killalea's farm, 943 Tahuna Ohinewai Road. Ph. 027 263 2521 for directions.

Guest Speaker Glen Atkinson, international lecturer and manufacturer of homoeopathic Biodynamic preparations in NZ, followed by a farm walk to view soil, pasture, stock and effluent management. Discuss issues that arise.

February 2, 2010 - 'First Tuesday' Sustainable Speaker's Series. Organics advocate Brendan Hoare will kick off 2010 with an address on the topic "Unleashing Sustainable Potential" at CCS Disability Action, 14 Erson Ave, Royal Oak, Auckland.

Covering international climate change events, the popularisation of sustainability, organics and energy awareness, Brendan's talk will explore strategies to sustain change over time, renew our goals, and continue pursuing results.

Organics News Roundup

Sprayed couple slam NZ's 'clean green' image
NZPA 21/01/2010

A Brazilian couple, who claim chemicals were showered on them while tramping, say New Zealand's "clean, green" image is a joke.

Caroline Leone and husband Rodrigo Ferreira Santos from Sao Paulo saved for their trip-of-a-lifetime to New Zealand because they believed it "was the perfect place for experiencing beautiful nature, amazing national parks and great landscapes".

However, while tramping the Heaphy Track before Christmas they and others were shocked to experience a "rain of chemicals" from a helicopter spraying gorse.

Ms Leone said they were aware of a helicopter and aeroplane flying directly over head for the entire five-hour tramp back to Kohaihai. They thought a rescue was being staged somewhere, until arriving at Kohaihai they saw a sign advertising aerial spraying of gorse.

"I have no word to describe the anger I feel right now," said Ms Leone who suffers from a medical condition which is made worse by herbicides and pesticides.

"We could not believe what had just happened to us. We find it completely unacceptable and disrespectful as well as a deep violation of our rights not to be told that we were going to be exposed to any chemical spraying whilst tramping in a national park." More...

Organic food is a trendy lifestyle choice in Australia
Meat Trade News Daily 04/01/2010

It is more wholesome, environmentally sustainable and many say it tastes better, although meat and vegetables produced with chemical fertilisers and sprays are still safe to eat.

But in China, where organics is a fast-growing sector, it is a different story. Affluent consumers there are seeking certified products as a safe option in a food chain known for horrendous pollution and poison scandals.

This is good news for enterprising Queensland organic companies, such as OBE Beef which is shipping tonnes of meat into Hong Kong each month and is in the final stages of getting certification for the lucrative mainland market.

And former Londoner Gordon Chalmers has shipped more than $20 million worth of Jasmin Skincare products from Mount Tamborine into China this year. His next step is a chain of organic stores in Hong Kong and major Chinese cities. More...

Benn unveils 20-year plan to boost food production
BBC News 05/01/2010

Plans to boost food production in Britain and reduce its impact on the environment have been unveiled. The government's 20-year food strategy also looks at making Britons eat more healthily and throw less food away.

Environment Secretary Hilary Benn said shoppers had led the push for more free-range eggs and could do the same for sustainable food. The Tories say they plan a supermarket ombudsman to protect farmers against potential abuses of power by retailers.

Mr Benn unveiled the government's Food 2030 plan at the Oxford Farming Conference - where the Conservatives are also outlining their plans - and said a rising population and climate change meant food could not be taken for granted. More...

African farmers to benefit from organic farming manual
Fresh Plaza 08/01/2010

Harnessing the potential of organic agriculture to break Africa's cycle of hunger and poverty, the Research Institute of Organic Agriculture (FiBL) recently launched its project to develop a field manual to help small African farmers adopt appropriate organic farming practices. The project is funded by a $302,000 grant from the Bill & Melinda Gates Foundation which is its first grant to support the development of organic farming in Africa.

Working in partnership with the International Federation of International Agricultural Movements (IFOAM) and national African organic agricultural movements, FiBL aims to devise practical farmer training methods that will configure organic farming knowledge into a dual purposed, modular system designed for both trainers and small-scale farmers.

The manual is tailored to the on-the-ground realities and learning constraints of the variable African rural environments. As such it will be an easy-to-use, extensively illustrated organic growing and crop management guide that can be used by illiterate or low-education farmers and can easily be used in farmer-to-farmer extension. More...

The individual comments and views in this newsletter do not necessarily represent the view of OANZ.