SFFF PROJECT:

Development of a Sustainable Self-Funded Organic Sector Body

Credit: Hans Herzog Estate

Building a sustainable future for Aotearoa New Zealand’s organic sector body.

In 2024, OANZ secured funding from MPI’s Sustainable Food and Fibre Futures Fund (SFFF) to design a sustainable future for OANZ. The SFFF Project ‘’Development of a Sustainable Self-Funded Organic Sector Body" is a strategic initiative that aims to strengthen its organisational structure, diversify revenue streams and adopt resilient business models that enhance its service offerings to the sector.


WHAT IS AN ORGANIC SECTOR BODY?

A sector body is an organisation that represents the interests of a specific industry. It acts as a collective voice for businesses and professionals, providing advocacy, networking, and support. Sector bodies may set industry standards, influence policy, promote best practices, and offer training or certification to foster growth and sustainability within the sector.


PURPOSE OF THIS PROJECT

This project will determine the optimal development pathway for establishing a financially viable sector body for the organic sector in Aotearoa New Zealand. By 2030, we intend to create a self-sustaining financial model that enables OANZ to continue driving growth and innovation in the sector.

The primary objective is to recommend an organisational model that aligns with the vision and outcomes of the 2022-2025 Organic Sector Strategy - Taking Action for a Better New Zealand.

Funded by the sector and MPI’s SFFF fund, the project will ensure the organic sector’s long-term viability through comprehensive research, stakeholder collaboration, and strategic planning. The final model will meet legal, financial, and governance standards, providing the sector body with a strong foundation to lead and support the organic sector’s growth into the future.

Te whakaahei i ngā pakihi parakore, i ngā hapori parakore, i te taiao hoki kia puāwai mā te mahi parahore.

Enabling producers, communities and the environment to thrive through organics.

THE PROBLEMS WE ARE TRYING TO SOLVE?

The organic sector in Aotearoa faces several challenges, the most pressing of which is OANZ’s financial unsustainability. Without a self-funded structure, OANZ cannot adequately advocate for and support the sector’s financial and environmental goals, which include achieving a compound annual growth rate of 9% by 2030. This target requires:

  • Improved productivity among existing organic producers and businesses.

  • Increased organic certification of new operations.

  • Expansion in organic exports.

Currently, the sector’s growth is hindered by the lack of a central, well-funded body to lead initiatives, advocate for the industry, and support stakeholders.


THE SOLUTIONS

The project proposes establishing a sustainable, self-funded organisational model for OANZ. This model will enable the organisation to:

Diversify Revenue Streams: Introduce new mechanisms and innovative options such as ecosystem service payments.

To achieve financial sustainability, our project sub-committees have been exploring a range of proven funding mechanisms employed by similar organisations worldwide, including:

  1. Membership Fees:

    Annual fees paid by members, such as farmers, businesses, and organisations, support many organic bodies. Examples include the Organic Trade Association and the Irish Organic Association.

  2. Certification Fees:

    Revenue is generated from fees for certification services or licensing labels, as seen with Bio Suisse and the Soil Association.

  3. Government Grants and Public Funding:

    Government contributions, especially for research and advocacy, are key sources for organisations like the Canadian Organic Trade Association.

  4. Donations and Sponsorships:

    Non-profits often rely on private donations and corporate sponsorships to fund specific projects, as exemplified by the Tse-Xin Organic Agriculture Foundation.

  5. Project-Based Funding:

    Grants and contracts for research or policy work are crucial for groups like IFOAM Organics Europe.

  6. Market Development and Business Revenues:

    Activities such as trade fairs, consultancy, or partnerships generate income, as with Pro Luomu ry in Finland.

  7. Certification Label Royalties:

    Fees from using certification labels, such as "Bio Suisse," provide a sustainable revenue stream.

The outcomes of the finance sub-committee revenue discussions have been categorised into short, medium, and long-term options - view drop down below:

Payment for Ecosystem Services Framework

Strengthen Advocacy: Act as a unified voice for the sector, addressing key issues like government regulations and GE risks.

OANZ aims to become a powerful voice for the organic sector in New Zealand by leveraging robust governance structures, comprehensive services, and informed decision-making processes. Advocacy will be central to its mission, targeting key stakeholders to support sector growth and sustainability.

Through these strategies, the sector body will ensure its advocacy is inclusive, informed, and impactful, positioning New Zealand’s organic sector as a global leader in sustainability and innovation.


Driving Sector Growth: Provide essential services, including mentoring for transitioning farmers, consumer education campaigns, and market development initiatives.

The proposed sector body will actively drive the growth of New Zealand’s organic sector by addressing barriers, creating opportunities, and fostering collaboration across the value chain. Its approach will focus on productivity, certification, exports, and building a strong foundation for sustainable, long-term development.

Through these initiatives, the sector body will create an ecosystem that nurtures growth, supports innovation, and ensures the organic industry in New Zealand thrives both domestically and internationally.


Delivering Value: Provide essential services, including mentoring for transitioning farmers, consumer education campaigns, and market development initiatives.

The sector body will focus on providing high-impact services that address the diverse needs of its stakeholders while ensuring financial sustainability and robust governance. These services will empower OANZ to foster growth, build resilience, and enhance the long-term viability of New Zealand's organic industry.

By providing these essential services, the sector body will strengthen the capabilities of organic producers, educate consumers, and create thriving markets for organic products. These efforts will ensure that OANZ is equipped to drive sector-wide growth, resilience, and sustainability for years to come.

Where to next?

WHERE TO NEXT?

The project is now entering its second phase, focusing on:

  • Stakeholder Engagement: Collecting input through workshops, surveys, and interviews to refine the organisational model.

  • Structural Development: Designing a draft governance framework and operational plan based on sector-wide feedback.

  • Funding and Integration: Identify long-term revenue mechanisms and explore collaboration opportunities with existing organisations like Te Waka Kai Ora and the Organic Exporters Association.

The goal is to finalise a comprehensive plan for the sector body by mid-2025, laying the groundwork for a resilient and thriving organic future in Aotearoa.