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:

    • Membership Revenue: Redevelop the membership programme and grow the community, but consider the high service expectations and financial constraints of small producers.

    • Grant Applications: Seek funding locally and internationally to address gaps left by reduced government support.

    • Corporate Sponsorships and Marketing Partners: Expand capacity to secure partnerships and promote the sector.

    • Online Organic Directory: Develop a marketplace to connect consumers with organic products and services.

    • Cost Recovery Fees: Adopt a model like the Plant Market Access Council, funded through fees linked to export services.

    • Certification Royalties: Collaborate with certification bodies to generate revenue through label fees.

    • Commodity Levies: Implement flexible levy systems across the supply chain, including manufacturers, retailers, and exporters, to distribute financial responsibility equitably.

  • Ecosystem Services Payments: Provide financial incentives for sustainable land management practices, such as carbon sequestration, water quality improvements, and biodiversity restoration. This innovative approach has received strong support and will be further explored with stakeholders.

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.

    • Unified Representation: OANZ’s governance model will include representatives from across the value chain—farmers, certifiers, processors, retailers, Māori growers, exporters, and consumers. This structure ensures diverse perspectives are integrated into advocacy efforts.

    • Advisory Committees and Working Groups: Specialised committees focused on policy, research, and market development will provide expert guidance on priority issues, such as government regulations, trade barriers, and GE contamination risks.

    • Sector Body Research: OANZ will invest in independent research to inform its advocacy positions, including comparative studies of organic versus conventional practices, market trends, and economic contributions of the organic sector.

    • Stakeholder Feedback: Regular engagement through surveys, interviews, and workshops will ensure advocacy aligns with the sector’s evolving needs.

    • Data-Driven Insights: A proposed data dashboard will track sector performance, helping to identify challenges and opportunities to shape evidence-based advocacy.

  • The sector bodyZ will advocate for:

    • Organic Producers: Championing policy changes that reduce barriers to organic certification and compliance costs, and promoting fair trade practices.

    • Māori Growers and Small Producers: Supporting access to resources, education, and market opportunities tailored to their unique needs.

    • Exporters: Lobbying for streamlined market access and equivalency agreements with international organic standards.

    • Consumers: Educating the public on the environmental and health benefits of organic products to build trust and demand.

    • Government Engagement: Work closely with policymakers to influence legislation on GE-free practices, environmental sustainability, and funding for the organic sector.

    • Public Awareness Campaigns: Drive initiatives that highlight the benefits of organics, counter misinformation, and promote consumer access to certified products.

    • Collaborative Alliances: Partner with organisations like Te Waka Kai Ora and international organic bodies to strengthen advocacy efforts globally and domestically.

    • Support for Member Goals: Tailor advocacy efforts to address member-specific needs, ensuring tangible benefits for all stakeholders.

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.

    • Capacity Building:

      • Deliver tailored training programmes and workshops to improve productivity and efficiency among organic producers.

      • Provide mentorship initiatives connecting experienced organic farmers with transitioning farmers to share best practices.

    • Resource Access:

      • Develop an online resource hub offering tools, templates, and guidance on organic standards, certification processes, and market access.

      • Facilitate access to affordable organic inputs, such as seeds and soil amendments, through partnerships and bulk purchasing initiatives.

    • Streamlining Processes:

      • Advocate for simplified, cost-effective certification procedures, reducing financial and administrative burdens for small-scale and transitioning producers.

    • Inclusive Certification Pathways:

      • Support Māori growers and small-scale producers by offering customised certification pathways that align with traditional practices and resource constraints.

      • Raise awareness about the benefits of certification among uncertified organic practitioners, encouraging broader participation.

    • Market Development:

      • Launch a national and international marketing strategy to promote New Zealand organic products, emphasising quality, sustainability, and GE-free branding.

      • Organise trade fairs and B2B events to connect organic producers with local and global buyers.

    • Consumer Education:

      • Run public awareness campaigns showcasing the environmental, health, and ethical benefits of organic products to build consumer trust and demand.

      • Develop an online organic directory or marketplace to help consumers easily find certified organic products and services.

    • Export Growth Support:

      • Advocate for government-backed equivalency agreements to simplify export compliance with international organic standards.

      • Assist exporters in navigating regulatory requirements and accessing high-value international markets.

    • Investing in Research:

      • Collaborate with universities and research institutions to develop innovative organic practices, tools, and technologies.

      • Commission research on market trends, consumer preferences, and the economic and environmental impacts of organic agriculture.

    • Data-Driven Growth:

      • Create a sector data dashboard to monitor growth metrics, identify trends, and inform decision-making across the industry.

      • Provide market intelligence reports and insights to help producers adapt to consumer and market demands.

    • Uniting Stakeholders:

      • Establish platforms for collaboration between producers, certifiers, retailers, exporters, and consumers to share insights, resources, and strategies.

      • Facilitate partnerships with complementary movements, such as regenerative agriculture and sustainable food systems, to amplify collective impact.

    • Mentoring and Support Systems:

      • Strengthen support networks for transitioning and small-scale farmers, ensuring they have access to mentorship, funding, and advocacy.

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.

  • Transitioning to organic farming can be complex and resource-intensive. The sector body will provide targeted support to ease this transition:

    • Mentorship Programmes: Pair transitioning farmers with experienced organic practitioners to offer on-the-ground guidance and share practical knowledge about certification, soil health, pest management, and market readiness.

    • Customised Pathways: Create tailored programmes for Māori growers and small-scale producers, recognising their unique challenges and opportunities.

    • Workshops and Training: Host educational events to equip transitioning farmers with the skills and knowledge needed to meet organic standards and succeed in the organic marketplace.

  • Consumer awareness and trust are critical for driving demand for organic products. The sector body will engage in educational initiatives to build consumer confidence and understanding:

    • Public Awareness Initiatives: Conduct campaigns to highlight the benefits of organic products, including environmental sustainability, health benefits, and GE-free farming.

    • Certification Transparency: Provide resources to educate consumers about organic certification, helping them identify and trust certified products.

    • Community Engagement: Organise farm visits, school programmes, and events that connect consumers with organic farmers, fostering a deeper appreciation for organic practices.

    • Content Creation: Develop engaging content, including videos, articles, and infographics, to share stories of organic producers and the positive impacts of organic agriculture.

  • Expanding market access is essential for supporting sector growth and ensuring producers thrive in a competitive environment:

    • Online Marketplace and Directories: Create a digital platform that connects consumers, retailers, and businesses with certified organic producers and services.

    • Trade Events: Host national and international trade fairs, business expos, and networking events to showcase New Zealand organic products.

    • Export Facilitation: Provide guidance and resources for organic exporters, including assistance with navigating international certification requirements and connecting with global buyers.

    • B2B Partnerships: Foster partnerships with supermarkets, retailers, and food service providers to expand the presence of organic products in domestic and export markets.

    • Market Insights: Deliver detailed reports on market trends, consumer demand, and growth opportunities to help producers and businesses stay competitive.

  • Delivering these services effectively depends on addressing OANZ’s financial sustainability and governance:

    • Diversified Revenue Streams: Implement membership fees, certification royalties, levies, and grants to create a self-sustaining financial model.

    • Transparent Governance: Establish a governance structure that ensures accountability, inclusivity, and stakeholder representation across the value chain.

    • Collaboration and Efficiency: Unify fragmented groups under a centralised sector body to streamline resources, avoid duplication, and enhance the collective impact of organic initiatives.

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.