Organic growers are lauding a report that says organic farming is better for the soil and the sector could become a billion dollar industry within three years.
Organics Aotearoa New Zealand (OANZ), the umbrella organisation for the organics industry, today released the New Zealand Organic Report, prepared by Otago University.
It showed that organic soils store more carbon in soils, and that organic farms have higher levels of biodiversity, said OANZ chairman Derek Broadmore.
Organic soils store carbon at a 28 percent higher rate than conventional soils and organic dairy farms had 43 percent more earthworms than their conventional neighbours, and higher levels of biodiversity in soils and waterways, he said.
"This is likely to be partly due to lower nitrate leaching from organic dairy farms, with Massey University suggesting that leaching into waterways is reduced by 58% with the adoption of organic practices."
The growth in organic production provided employment and enhanced New Zealand's international reputation for responsible ecosystems management, he said.
The report also showed the total value of New Zealand's domestic market for organic products was now worth $315 million, with an additional $170 million contributed by organic exports.
Mr Broadmore said that New Zealand now had 1145 certified organic farmers, producing on more than 124,000 hectares, or about 3.5 percent of New Zealand's crop land.
"New Zealand's organic sector has grown to a total value of $485 million in 2009, up from $330 million in 2007 and $140 million in 2005," Mr Broadmore said.
"This rapid growth shows a continuing concern about what is in our food, and how it is grown."
Meanwhile, sales of organic dairy products grew almost 400 percent and beverages grew 430 percent since 2007 and the country's organic sector was in a strong position to achieve OANZ's target of $1 billion by 2013, Mr Broadmore said.
Organic Products Exporters of New Zealand deputy chairwoman Michelle Glogau said Europe and North America continued to be New Zealand's main organic export markets but Australia has emerged as the third largest export destination.
Organic fruit and vegetables worth $85.8m were exported in 2009, but dairy products, worth $27.8m, and beverages, worth $16.9m -- particularly organic wine -- were fast catching up, she said.
"This research also highlights the growing importance of South Korea as a destination market -- but one where New Zealand's market access is threatened by proposals for a tough new Korean national standard."