New Zealand's sales of organic food maybe at an all-time high, but the sector remains burdened by a lack of supply, a lack of investment and a reputation for being bourgeois. While sales of organics are growing twice as fast as conventional food, it still represents just 2.2% of total supermarket sales.
Statistics from AgFunder, which tracks investments in agriculture and food tech start-ups, show that US$10 billion was invested globally into the agri-tech sector last year up, nearly 30% from 2016.
Think of brands like the Impossible Burger and Beyond Meat, which just tripled in value after it was listed on a stock exchange. Billionaire investors like Bill Gates, Jeff Bezos and Richard Branson are all investing in the sector, including investments in biotech start-up Motif.
Investments in organic foods are growing off the back of agri-tech's popularity, but it's difficult to imagine they could be anything near the levels agri-tech is seeing. Although, an exact figure could not be found.
Research from Organics Aotearoa New Zealand found 80% of New Zealanders purchase organic items at least every fortnight. The sector, which has seen 30% growth since 2015, says it's booming. The same growth can be observed all over the world, with a global market worth US$97b (NZ$146b), according to an international report from the organics industry.
But that's not all good news, necessarily. Ben Bostock, co-founder of organic chicken label Bostock Brother's, said with the sector's growth created openings for fraud: "It is critical the reputation of organics is not damaged. Sound regulation is important so consumers can trust the product is actually organic."
According to stuff.co.nz ΒΈ national standards for organic produce are now on the horizon, and the hope is that it will encourage the investment that has so far been lacking.
