SECTION 2 - RESEARCH INVESTMENT IN ORGANIC FARMING - Jon Manhire
The aim of Section 2 is to determine the current and projected research investment, both public and private required to underpin organic farming in New Zealand. Input for this analysis was provided through consultation with both organic and conventional producers located throughout the country, while a survey was sent to companies currently exporting organic products, research agencies and relevant industry groups.
The findings of this consultation are outlined below and provide details on the constraints to the further development of the organic sector, research priority areas as well as suggestions on possible research processes for research into organic production. In addition comments on the proposed funding of research into organic production was obtained.
2.1 Focus Group Response
2.1.1 Outline
The views of both current organic and conventional producers were obtained to provide a clear understanding of constraints to and research requirements for organic production. Focus groups were used to obtain this information from a number of producers representing a wide range of production sectors and regions. Focus groups are a surveying technique used to obtain a wide range of comments on issues raised through facilitated discussions.
Seven focus groups were held during May 1997. Six of these were held in different regions to ensure participants reflecting different regional, production sector and scale of operations were represented. One focus group was made up of various industry representatives.
Canterbury - Small and large mixed organic production systems including vegetables, fruit and arable crops. Mix of growers primarily supplying local and export organic markets.
Nelson - Organic participants - mainly smallholders growing a range of crops for the local market. Conventional participants - large pastoral and apple production.
Hasting - Organic participants - large farms - mixed cropping, orcharding, pastoral. Conventional participants - large orchard, vegetable and pastoral production
Tauranga - Organic participants - principally kiwifruit with some other horticultural crops. Conventional participants - kiwifruit, vegetables and other fruit crops.
Palmerston North - Organic participants - larger mixed cropping, pastoral and small intensive operations. Conventional participants - large - arable, mixed and pastoral farmers.
Auckland - Organic participants - small - vegetable and fruit production. Conventional participants - large - vegetable and fruit producers.
Canterbury - Organic food processors, marketers and retailers. Researchers, educators and a Tradenz representative.
The organic producer participants were identified from the latest BIOGRO producers' list. The conventional farmer participants were primarily identified by Agriculture New Zealand Ltd consultants and were selected on the basis of their ability to be able to contribute positively in a group meeting and to be farming in a regionally representative production type.
An outline of each focus groups discussions are found in Appendix 4. A summary of the finding are outlined below.
2.1.2 Limiting Factors to Organic Industry Development
A wide range of constraints to the growth of the organic industry were suggested at the focus groups. The main themes were;
Production factors
- Production risks, i.e possible lower yields, crop loss, pests, disease.
- Technical problems and possibly no effective management strategies for significant management issues, e.g. parasites, pests, disease, weeds.
- Economic viability. Financial returns may be lower especially during the transition phase when premiums may not be available.
- Lack of information on organic management strategies and market opportunities.
- No critical mass of producers in many sectors to enable economies of scale for processing, servicing, research and market development.
- Lack of suitable pest and disease resistant plants and animals.
- Maintenance of soil fertility.
Market factors
- Lack of organic markets for a number of products, e.g. red meat, crops for a whole rotation.
- New Zealand market - distribution is uncoordinated, the market is small, consumers are relatively uniformed about organic food and certification.
- Concern that current premiums for organic products will decline as production increases.
- Fumigation and phytosanitary issues for fresh fruit and vegetable exports.
- Consumer confusion about organic label claims and non-certified organic produce.
- Appearance of organic fresh vegetables and fruit may not be as good as conventional.
Infrastructure factors
- BIOGRO Certification - This is seen as a barrier to small growers due to the costs. BIOGRO standards, e.g. animal standards were reported to be too high in comparison to overseas organic standards by some producers creating an unfair barrier to production and trade. The process of certification was also reported to be intrusive and that some of the standards lacked logic. Inspectors and the administrative system lacked professionalism.
- Regulatory body, exporter, processor, packhouse attitudes. It was highlighted that if these agencies attitude was less than supportive it created a major barrier to industry development.
- Scale - many sectors and companies are not interested in organic production because it is too small and therefore, difficult to process and costly to market.
- Lack of government support i.e. overseas governments have taken an active role in stimulating demand for organic production and providing subsidies for conversion.
- Resistance from some of the status quo, e.g. chemical companies, and other input supply companies antagonistic to organics because of the potential threat to chemical sales.
- Lack of support networks and information.
Other factors
- Negative image - organic production is seen as a hippy thing and a left wing radical option.
- Conventional farmer negative attitudes - many see organic production as unattainable, high risk, and a source of local problems, e.g. the spread of weeds.
- Organic production due to lower yields will not feed the world.
- Organic production not necessarily being seen as the most sustainable system due to restrictions on some management approaches, e.g. zero tillage vs repeated cultivation for weed control in wind erosion prone areas.
2.1.2.1 Conversion to Organic Production
Focus group participants were asked to discuss the reasons why they started organic production or for current conventional farmers what would encourage them to become organic. The general themes are outlined below.
Existing organic farmers
- Many participants who had been organic for some time had become organic because they supported the values that organic production stand for, i.e. healthy and safe food, protection of the environment and people working on the farm.
- Many of the newer organic farmers e.g. kiwifruit had entered for economic reasons in that they saw they could obtain higher net returns. Many in this group highlighted a wider appreciation of the benefits of being organic once they had started production i.e. improvement in soil structure, decreased pest and disease problems.
Conventional farmers
- Generally the conventional farmer participants would consider becoming organic if organic production met the following;
- It was more profitable.
- That there were strong market signals from credible exporters.
- It was technically feasible and sustainable over the long term.
Contact for Enquiries
Kay Brown
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0695
Fax: +64 4 4 894 0746
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