This is an excerpt from the 2025 Organic Sector Market Report, authored by Bruce McGill. Download the full report here.

Insights from McGill Organic Sheep and Beef Farm

At McGill Organic Sheep and Beef Farm in the Catlins, South Otago, we have been committed to organic farming for more than 40 years. Our family farm spans 650 hectares, with seven QEII covenants protecting six native forests and a wetland, leaving 500 hectares of grazeable land where we currently run 3,000 sheep and 200 cattle. We are proud to manage the farm as a family, drawing on the skills and support of my wife Denise, our children and their partners, and now five grandchildren.

Over the decades, we have seen first-hand both the challenges and the enormous potential of organic sheep and wool production in New Zealand. Our journey started in 1980, and by 2000 we achieved full organic certification. Today, we supply organic wool into high-value export markets and organic meat into the domestic market, but we believe there is still untapped demand, particularly overseas.

We are already seeing strong demand for organic wool, especially for bedding products in the United States. Buyers in that market want safe, natural, renewable fibre, and they are willing to pay a premium. Through partnerships with PGG Wrightson and buyers like Block and Behrens, we have been able to secure a reliable outlet for our wool at prices well above conventional crossbred wool.

Challenges in the Organic Meat Market

However, the organic wool sector remains small, and New Zealand has yet to fully develop a coordinated supply chain and marketing strategy to scale production and capture this growing international demand.

Our experience with organic meat has been more challenging. We once exported lamb to Whole Foods in the United States, but currency fluctuations and market disruptions following the Global Financial Crisis closed that pathway. Today, most organic meat produced in New Zealand is consumed domestically, yet we know overseas markets, especially in the United States and Europe, are actively seeking organic, grass-fed, free-range meat. Unfortunately, the lack of equivalence between New Zealand’s organic certification and key international standards has limited our ability to access those higher-value export markets.

Practical Realities of Organic Sheep & Beef Farming

Beyond market access, organic sheep and beef production also requires different farm management approaches. Internal parasites are a constant challenge in New Zealand’s all-grass systems, where we do not have access to crop rotations or grain supplementation like some overseas organic producers. We rely on a combination of science-backed strategies such as genetics, multi-species pastures, mixed animal species and age groups, and rotational grazing to manage parasite burdens without chemicals. This approach works, but it requires more knowledge, skill, and labour. New Zealand’s organic standard needs to acknowledge the unique production environment faced by pasture-based farmers and support practical solutions tailored to our systems.

What the Sector Needs to Grow

Looking at our own farm, we know the global demand is there for organic wool and meat from New Zealand. The challenge and opportunity is to ensure farmers like us have the tools, support, and market access to meet that demand. For the sector to grow, we need:

A New Zealand national organic standard that achieves equivalence with key trading partners like the United States and Europe.
Investment in marketing and branding to position New Zealand organic sheep and wool products in high-value export markets.
Research and extension to address production challenges specific to pasture-based organic systems, including internal parasite management.

Organic sheep and wool farming in New Zealand holds enormous potential to deliver premium products that align with global consumer values of health, sustainability, and ethical production. Our farm is proof that it can be done. With the right policy and industry support, more farmers could follow this path, helping to build a thriving organic sector that adds value to New Zealand’s food and fibre exports.

The global organic lamb market was valued at approximately US$12.53 billion in 2024 and is projected to reach US$13.39 billion in 2025. From 2025 to 2033, it is expected to grow at a CAGR of 6.9% (Future Market Insights). This growth is largely driven by rising consumer demand for organic meat products, especially in key markets such as the United States. In 2022, the US organic and free-range lamb market was valued at approximately US$300 million, with projections suggesting it could grow to US$500 million by 2028 (Essfeed).

Market Outlook: Organic Sheep and Beef

The global wool market is estimated at US$35.25 billion in 2024 and is projected to reach US$47.83 billion by 2034, growing at a CAGR of 3.1% (Fact.MR). Organic wool often commands a significant premium, with prices reported to be 10–15% higher than conventional Merino wool, and up to 100% higher for crossbred wool (GOTS Wool). These premiums reflect growing consumer demand for sustainable and ethically produced textiles, including bedding and apparel, as well as increased interest from brands aiming to demonstrate environmental responsibility and comply with stricter sourcing standards.

The global organic beef market is projected to be valued at US$13.54 billion in 2025 and is anticipated to reach US$26.39 billion by 2035, expanding at a CAGR of 6.9% (Future Market Insights). In the United States, organic beef has been reported to command a premium of approximately 67% over conventional beef prices, underscoring the value consumers place on certified organic production methods (Iowa State University Extension).

The Future Is Organic

These trends underscore the potential for New Zealand producers to tap into growing international markets for organic lamb, wool, and beef. However, challenges such as certification equivalence with key trading partners and the need for robust marketing strategies remain. Addressing these issues could position New Zealand as a leading supplier of organic animal products globally.

To explore more insights, trends, and opportunities from across Aotearoa’s organic sector, we encourage you to read the full 2025 Organic Sector Market Report available here.

UNLOCKING THE OPPORTUNITY FOR ORGANIC SHEEP AND WOOL IN NEW ZEALAND