Introduction

Organic farming is a growing trend in agricultural system that was born as response to modern agricultural intensification practices. The organic farming ethos is about rejecting the use of synthetic pesticides, inorganic fertilizers, and genetically modified organisms that have become so widely used in conventional farming (Nandwani and Nwosisi, 2016). There are various definitions of what is classed as organic agriculture (Lynch, 2009; Organics Aotearoa New Zealand, 2017), but generally organic farming is based on a set of principles pertaining to; 1- Protecting the environment, minimizing soil degradation and erosion, decreasing pollution, and optimize biological activity and ‘‘health’’. 2- Maintaining soil fertility by optimizing conditions for biological activity within the soil.  3- Maintaining biological diversity within the system. 4- Recycling materials and resources to the greatest extent possible within the enterprise. 5- Relying on renewable resources in locally organic food systems (Lynch, 2009). Organic farming also aims to increase health benefits to humans through reduced chemical residue consumption and enhanced nutrient content of foods (Cressey et al., 2009; Aghili et al., 2014; Helfenstein et al., 2016).

 

Recently, intensified monocrop farming has played a significant role in reducing species diversity and abundance on farmed land which has had a major impact on overall biodiversity and ecosystem health (Swift and Anderson, 1994; Moller et al., 2008). Organic farming takes a holistic approach to farming management and promotes the use of natural environmental cycles such as biological pest control, waste recycling into fertilizers, crop rotation, and relying on the ecosystem services of a biologically diverse bacterial, fungal, and invertebrate community to achieve a sustainable and healthy farm ecosystem (Nandwani and Nwosisi, 2016; Hole, et al., 2005). Organic farming has had measurable effects on biodiversity within agricultural systems (Lynch, 2009). Many species have been found in higher population numbers including earthworms, beetles, spiders, and birds (Hole et al., 2005). Pollination services have been shown to increase (Anderson, Rundlof, and Smith, 2012) and the number of taxa within organic farms is generally higher, including higher native and endemic species abundance (Todd et al., 2011; Todd et al., 2016). Organic farming also assists in soil health by accumulating soil carbon and nutrient loading (Lynch, 2009; Gattinger et al., 2012). These effects vary from region to region depending on specific practices and the level of investment in biodiversity conservation, but in general the overarching philosophy of organic practice consistently correlates with greater biodiversity within farms (Schuler et al., 2013).  

Before the 19th century all farming was organic farming, it is only since the use of synthetic pesticide began did we subsequently start to see the development of ‘biodynamic products’ and organic philosophy. The movement first began in Germany in the 1920s which later went on to become organic farming that we know today (Jones and Mowatt, 2016). Organics has seen slow but exponential growth over the 20th century partly due to a growing consumer demand for products considered more ‘natural’ and the development of rigid certification systems. However, it remains a very niche market with only 0.9% of the world agricultural land registered as organic (Popescu and Pop, 2013; Jones and Mowatt, 2016). From 2000-2010 the percentage of organically registered farmed land worldwide has doubled from 14.89mHa to 37.04mHa with Australia, Argentina, USA, Brazil, and Spain being the top contributors in total land area farmed organically (57.64% combined) and Africa and Asia being the fastest growing organic industries (Popescu and Pop, 2013). In recent years Europe has seen the rise of a more conscious consumer and is now the largest consumer of organic produce (Popescu and Pop, 2013).

 

Currently today any country with a relative proportion of organically certified land around 10-20% is considered fairly high, as seen in countries like Sweden (16.3% in 2014) and Switzerland (12.2% in 2014) (Popescu and Pop, 2013; Jones and Mowatt, 2016).  However New Zealand has remained relatively low on this scale with only 0.52% of agricultural land registered organic in 2016 (Organics Aotearoa New Zealand, 2017). A key issue surrounding the use of organic practices is profitability, and the relative costs/benefits of yield loss and increased labour vs. enhanced value of product both financially and on a human health level (Lynch, 2009). Given the benefits that organics can have on our ecosystem, the natural growth of organic industry across the world, and how far we lag behind many other countries, we will be discussing in further detail what the New Zealand government could be doing more to make organic farming practices more widely utilized within New Zealand and how they can be used as a means to reduce biodiversity loss.

 

History

The introduction of organic farming in New Zealand is relatively recent. In 1939 New Zealand saw its first organic agriculture association named the Rudolf Steiner Biological Dynamic Association for Soil and Crop Improvement (Jones and Mowat, 2016). Through the years different associations have risen and fallen with organics still being very much a niche system (Jones and Mowat, 2016). In 1982 the local Biogrow standard (accredited by the International Federation of Organic Agriculture Movements in 1985) was established as an independent body by which to classify organic farming (Jones and Mowat, 2016). In 1984 New Zealand underwent significant agricultural reform with government deregulation of the industry, this lead to industry driven programs, the diversification of farming practices, and the wider scale adoption of organic agriculture in the late 1980’s (Campbell and Rosin, 2011).   Large producers such as Watties Frozen Food LTD experimented with organic production, but with little market demand there wasn’t much traction until in 1992 when Zespri International LTD took a large step forward and began encouraging organic practices and integrated farming and pest management systems within the fruit industry, particularly in kiwifruit (Campbell and Rosin, 2011, Jones and Mowat, 2016). By 2001 over two thirds of organic produce in NZ was fruit and vegetables (Jones and Mowat, 2016). Since then a host of companies have begun adopting and promoting organic systems. The New Zealand wine industry has come on board and aims to be 20% organic by 2020 (Julyan, 2011). From 2008-2011 the amount of NZ vineyards certified organic tripled to 1500Ha or 4.5% of total vineyards (Julyan, 2011).  Foneterra New Zealand milk producer released their organic milk in 2015 and has been shifting the industry toward organic systems (Fonterra Brands New Zealand, 2015). Today the New Zealand organic domestic markets are estimated at $217 million, exports are around $250 million (Organics Aotearoa New Zealand, 2017). Organic horticultural land area coverage is up to 25476 Ha and livestock farming land was 42,837Ha in 2015 (Organics Aotearoa New Zealand, 2017). New Zealand has seen an upwards trend in the last 20 years and it is to be noted that this was primarily driven by industry and market demand, not government.

 

Benefits and costs to New Zealand biodiversity and business

There are many benefits that organic farming can bring to New Zealand species biodiversity and ecosystem health (Lynch, 2009). Studies in New Zealand kiwi fruit orchards looking at the differences in invertebrate communities under organic and Integrated Pest Management (IPM) systems found significantly more taxa in organically farmed fields including more predators, paracitoids, herbivores, fungivores, omnivores and endemic species across these categories (Todd et al., 2011; Todd et al., 2016). Experiments on Kumera on the east coast have found organic practices increasing yields (Bloomer et al., 2006). Organic farming also has a smaller carbon foot print due to other benefits such as reducing the synthetic chemical runoff into New Zealand waterways, nitrate leaching into ground water, and reduced soil erosion (Crowder and Reganold, 2015). There are some reports of organics being bad for soil nutrient levels in the long-term due to in efficient fertilization of natural products; however, this is caused by agriculture intensification and the need for high crop yields within a certain amount of land space (Leifeld, 2012). Nutrient depletion only occurs within the farmed fields and is caused by intensified farming taking more nutrients than a natural ecosystem can support (Leifeld, 2012). Overall, there are very few down sides for the natural environment regarding organic systems.

 

As well as ecological benefits, there are economic benefits to business too. The organic framework allows farmers to charge a premium on their products without the need for competitive advertising. Organic farming is an established systems framework with many stakeholders invested in promotion of the industry. It is also part of a healthy eating trend in consumer behaviour as backlash to heavy pesticide and herbicide usage and to a lesser degree processed foods (Fairweather, 1999). For the price of certification any farmer can benefit from this collective marketing (Jones and Mowatt, 2016). Organic farming also benefits the small farmer with limited land by providing a mechanism for charging higher prices on a relatively small yield (Fairweather, 1999).  Organic farming can be used as a way for marginally profitable farms to avoid the cost of purchasing synthetic pesticides and herbicides and replacing them with increased labour requirements which helps support employee’s wages (Fairweather, 1999). Organic farming also has fringe benefits to workers health by reducing the amount of toxic chemicals a farmer will be exposed to over the course of their life time (Fairweather, 1999).

 

Organic agriculture provides a medium for maintaining Maori’s close link to the environment and being ‘people of the land’.  The Maori cultural ethos views food (Kai) as a way of sustaining wellness (Unnamed, 2009). The Maori authority Te Waka Kai Ora is the governing body that validates Maori organic products that have been produced using Maori knowledge systems (Unnamed, 2009). Hua Maori is a new initiative that sets out to provide a regimented certification and labelling system for traditional farming practices, as laid out in the book Te Mahi Māra Hua Parakore – a Māori Food Sovereignty Handbook (Hutchings, 2016). Traditional Maori culture has a lot to gain from increased acceptance and support for natural organic farming practices. 

 

The biggest issue that organics faces is that to be sustainable for New Zealand business organic agriculture must be profitable to the farmer (Crowder and Reganold, 2015). The conventional vs. organic yield gap is a big issue that individual businesses need to consider before converting to organic. On average organic farming produces 20% less yield than conventional farming due to crop loss from pest damage and reduced soil quality from less efficient natural fertilizers (De Ponti et al., 2012). This is a big hurdle to get over, especially for small businesses that generally have tight margins in order to compete with larger industry (De Ponti et al., 2012). Reduced yield is seen by New Zealand farmers as one of the top 5 reasons for not converting to organic (Fairweather, 1999). Another issue is the increased labour. Without the use of broad spectrum synthetic pesticides and herbicides labour input can intensify by 13% because of the need for mechanical pest control (Crowder and Reganold, 2015). However, this cost is able to be offset with organic produce premiums that conscious consumers are willing to pay. In fact, organic produce can be more profitable than conventionally farmed produce with gross returns 21% higher than conventional farming (Crowder and Reganold, 2015).

 

The second major issue lies in the size of the domestic and international organic markets. Currently high input costs of organic farming are offset with premium pricing but if organic were to become the mainstream this would have a negative impact on the domestic market (Crowder and Reganold, 2015). Product pricing across the board would rise to compensate for the added costs input and loss of yield from organic farming (Seufert et al., 2012). Small organic farmers would also lose a vital marketing edge that sets them apart from larger corporations (Campbell and Rosin, 2011). On an international level the New Zealand export market would gravitate toward high end and could become competitively disadvantaged (Crowder and Reganold, 2015). Although organic produce can be more profitable (Crowder and Reganold, 2015) the consumer demand is smaller. High end produce is also considered to be a luxury rather than a necessity meaning global events (e.g. recessions) can severely affect this market.

 

However, despite the negative implications of organic farming on business a small but significant number of farmers are making the shift to organic because of health interests and environmental awareness (Fairweather, 1999). A survey of New Zealand farmers showed that many who made the shift to organic declared their concerns for their health as a consumer as a reason why (Fairweather, 1999). Pesticide residues have been found up to 20% higher in conventionally grown products and among New Zealand products 2.6% of samples taken from conventionally grown produce was found with pesticide levels exceeding maximum residue limits for some chemicals (Cressey et al., 2009).  Farmers also expressed concern for working with hazardous chemicals and felt that organic systems were better for themselves and their family’s safety (Fairweather, 1999).

 

Issues with implementing organic farming policies

Regardless of natural progression of the organic industry there have been issues with developing policy around it. The New Zealand government has had relatively little input regarding organic systems compared to other countries (Jones and Mowatt, 2016). Part of this can come down to a lack of need to take responsibility and the belief that the free market will mediate growth (Jones and Mowatt, 2016). There is a relatively large group of stakeholders in New Zealand that is willing to drive this industry, including but not limited to Zespri kiwifruit, Fontera, CeresOrganics, Countdown supermarkets, Foodstuffs, and Pure fresh organics (Organics Aotearoa New Zealand, 2017). The other resistance stems from the implication that it may cause conflict and pose a risk to the ‘New Zealand Clean and Green’ image (Jones and Mowatt, 2016). There has been considerable effort in marketing New Zealand on a global scale as ‘Clean and Green’ to enhance New Zealand’s international standing and strengthen trust in New Zealand products and quality. There is concern that by investing in organic systems and labelling products as organic it, by association, highlights that other produce from New Zealand is not organic which undermines the image of New Zealand products being ‘Clean and Green’ (Jones and Mowatt, 2016).

 

Other implications that could arise from the enforcement of more organic systems is the added cost to industry particularly the small farmer. Many businesses simply cannot afford the cost to convert to organic systems (Fairweather, 1999). If any form of government involvement is to occur it needs to come from providing incentives and subsidies helping facilitate the move, and look at ways of educating and simplifying transitions. Enforcing ecologically and environmentally beneficial policies will only induce more stress on the small business and industry.

 

To understand what the correct incentives is that could facilitate change we must first know the reasons why farmers have not chosen to convert to organic farming yet. A survey by Fairweather (1999) looked into the reasons why farmers would not adopt organic systems and they found 5 main criteria that influenced this decision. The first was that farmers just didn’t know enough about organics and did not even think about it. The second was the concern for lowering yields and the untidiness of organics; chemicals provided not only ease of farming but help maintain their external image. The third reason was some farmers were already using low input systems (not organic) and considered these ‘close enough’ to organic systems. The fourth reason was the shear impossible financial viability of organics for their farm, and the last reason was about the unsustainable nature on a global scale.

 

Another practical issue is determining how much declaration of commitment to the environment continues through to real commitment by following the correct procedures for organic systems without cutting corners (Lehmann, 2009). Many farmers surveyed by Fairweather (1999) stated environmentally friendly incentives but lacked follow through and this mirrors consumers motivations too. In North America consumer preference for organic products is more closely correlated with the perceived health benefits (78%) rather than environmental benefits and animal welfare (13%), and in Europe 57% purchase organic for health benefits and only 31% for environmental benefits and animal welfare (Lynch, 2009). Ecosystem health and biodiversity is what we want to enhance and take care of but if the personal motivations toward organic farming are favoured toward other reasons e.g. financial, health benefits and are not in line with ecological benefits then it is questionable how long these systems can be adopted for.

 

Lastly, a fundamental problem with organic business is business mentality itself. As a business grows, small scale ‘alternative practices’ such as organic agriculture tends to adapt to large scale commercialisation (Campbell and Rosin, 2011). It is difficult to run high throughput profitable operations without conforming to conventional systems. To add to this a binary mentality, exist between ‘Conventionalised’ industrial and ‘authentic’ organic (Campbell and Rosin, 2011). The idea of a large scale commercialised organics sector is seen as an oxymoron by many consumers and larger industry may not share the benefits of the ‘organic’ label that smaller, local businesses that are closer to the community may receive (Campbell and Rosin, 2011).

 

Conclusion

The issues with organic farming practices becoming common place within New Zealand are very much based around business model sustainability and profit margins. There is ample evidence to show that organic farming does increase biodiversity and increasing these systems will help New Zealand in maintaining more species abundance and diversity within farmlands. These benefits are certainly worth pursuing as there are very few systems and policies in place that are simultaneously capable of reducing negative impacts on the environment whilst benefiting business. We are already seeing a natural growth of organic practices meaning that further encouragement would not meet any considerable resistance. But we do need to keep in mind that businesses need to benefit too or the organic systems will not continue to grow naturally and unforced. Development of organic farming as standard practice in New Zealand would be crippling to the New Zealand agricultural industry as the increased cost would put New Zealand at a competitive disadvantage in the global market would also impact domestic consumers negatively too.

 

The other major problem is the consumer perception of large industry and its capability to produce ‘natural’ and ‘authentic’ food is not a solid platform for larger industry to benefit from like smaller operations do. With the broad implications for both industry and the environment, for now it remains more beneficial for organics to remain as a relatively niche ‘opt in’ market for farmers. The best way forwards are to look at incentivising and simplifying the process of organic certification and eliminating any possible barriers that would stop farmers shifting to organic. This would help increase the number of organic farms and get New Zealand more competitive with other countries in the organic market that we are currently lagging behind, without causing major upsets to the existing market dynamic.

 

The focus policy makers should be prioritising is developing and implementing other farming practices that fit a medium between organic and conventional such as IPM (Todd et al., 2011; Todd et al., 2016). IPM is a relatively more environmentally friendly system than conventional but not a restricted as organic systems (Todd et al., 2011). New systems can provide mechanisms for larger agriculture business to operate in ways that help increasing biodiversity without encroaching on the small-scale organic market or causing significant price increases to food products. Organic practices do not need to be ‘all or none’ any small changes that we can make to our agricultural systems that help to increase biodiversity are beneficial to the New Zealand natural ecosystem.

 

 

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