2.2.3 Research

2.2.3.1 Past and Current Research

Most of the small company respondents had not undertaken any contracted research on organic production however, 20 per cent had undertaken market research funded typically through Business Development Board funding. In addition, some farmer respondents highlighted the development cost defined by the loss in production and the opportunity cost for the development of successful organic production systems on their properties. In one situation this was suggested as being worth over $200,000.

Thirty-five per cent of large-medium sized companies recorded a past or current investment into research programmes that were supporting their initiatives in the organic area. Supplementary funding support for this research which totalled over $700,000 came from internal funding sources or more significantly from the FoRST Technology for Business Growth Programme. Funding was principally for technical research projects as well as market research.

2.2.3.2 Constraints to Research

For the small companies, most indicated a lack of investment capital as the main limiting factor to the expansion of their organic research and development programme. In addition there was a perception that their were no possible solutions to some production limiting problems by 50 per cent of this group.

The main constraint to increased research funding by larger companies in this area was a lack of understanding of the appropriate research providers, possible funding agencies or research processors. In addition, a lack of investment capital was also rated as a significant limiting factor to the expansion of their research and development programmes. Organic production was a low priority for 20 per cent of these companies and therefore, was not considered for research funding.

2.2.3.3 Research Priorities

Priorities for research to enhance organic production or which would support industry and company development in this area were provided by respondents. There was little difference based on the size of the companies and their general research priority areas. However, smaller companies did focus more on production systems research, a reflection of the number of existing organic producers in this group. Suggestions included the following:

Production Systems

  • "Profitability and sustainability of organic farms in comparison to conventional farms - long term viability."
  • "The financial benefits to the producer and the other benefits from organic farming need to be defined."
  • "Sustainable management of cropping soils (biological, physical and chemical) under organic production."
  • "Research on other crops that can be grown in rotation other than just process vegetable crops."
  • "Techniques to reduce costs and techniques to increase yields."
  • "Independent research on the effectiveness of the biodynamic practices."

Market Research

  • "Market research and promotion to meet other countries requirements and to define consumer perceptions as well as market development in Asia."
  • "To demonstrate nutritional value of organic food and the difference with conventionally grown food."
  • "Why New Zealand organic regulations differ from overseas and can be so much more restrictive."
  • "How to support and encourage producers and the public to be organic."

Technology Transfer

  • "Provide Internet, 0800 number and free information for farmers to get started towards organic."
  • "Increase grower awareness on the opportunities in this sector."
  • "Research that demonstrates to farmers the benefits of cover crops and other management strategies."
  • "Pest control, fertiliser alternatives and develop strategies to transfer organic farming techniques to conventional farmers and reduce their inputs."

Infrastructure Support

  • "Funding for the BIOGRO office to have display unit and provide information to farmers as well as to support its activities."
  • "Research to assist BIOGRO develop accurate and relevant standards."

Production Specific Projects

  • "Evaluate other production technology to maximise yield and quality."
  • "Insect control and how to increase yield. Production systems ie, control of Blackspot in apples, pest control in apples and kiwifruit."
  • "How to pack honey and comply with low heat requirement of BIOGRO feeding of hives."
  • "Weed control".
  • "Lice and worm control in sheep."
2.2.3.4 Research Processes

Companies were invited to comment on appropriate processes for research into organic production.

  • "Need dedicated organic research farms such as in the UK, possible a model monitor farm system reviewing the main production systems to monitor the conversion period from conventional to organic."
  • "Consider that research processors and funding mechanisms for 'conventional' production are in general appropriate for organic production research 'organic' research should be able to be accommodated by a change in Government priorities within the existing framework."
2.2.3.5 Proposed Research Funding

Most large-medium sized companies were strongly supportive of; or supported an increase in funding for research into organic production, apart from one which made no comment and was neutral. The majority of small company respondents supported increased funding apart from one who was strongly against it with the view that the money should be used to clean up conventional agriculture, police the RMA so that the subsidy to conventional agriculture is exposed and eliminated.

Reasons why the organic sector should receive increased research funding included:

Market

  • "There is a strong demand worldwide for organic products and it is concurrent with our current clean green image that New Zealand can obtain a lot more value added business."
  • "There is a lack of market signal going to farmers which needs to be addressed. We need to inform farmers of the significance of the opportunities in this area."
  • "Organic production offers opportunities to develop profitable niche markets overseas and get away from commodity type trading where low cost producers will always win."
  • "All other countries seem to fully support organic agriculture apart from New Zealand. New Zealand has to catch up with this because of the huge market."
  • "New Zealand sells itself as a clean green producer. The world market is demanding clean green so we need to develop alternative systems to take away the financial risks to growers."

Other

  • "Research into organic agriculture will also benefit conventional agriculture in the long term. The world requires residue free produce. The sooner research begins the sooner New Zealand will be able to meet these markets."
  • "It is about time organics had some recognition for the poor treatment it has received in the past."
  • "In favour of increased funding to support industry development, but $10 million per year is equivalent to 50 per cent of the total sales value of the existing industry and seems excessive."

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Kay Brown
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
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NEW ZEALAND

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