What we pay for organics

Saturday, 11 May 2019

Fruit pickers at Butlers Berry Farm in Makikihi (L-R) Olivia Olivares from the Phillipines and Patel Manisha from India.

While many of us want to eat more organic food, it often comes at a premium that many can't stretch to.

Part of the reason organics are priced higher, beyond producing food without pesticides or synthetic inputs, is there aren't enough organic producers to provide supermarkets with items at the scale they require for the cost to come down.

The global market in organics was worth US$97 billion (NZ$146b) in 2018.

Head of New Zealand's largest organic certifier, Donald Nordeng said that in the United States the sale of organic fruit and vegetables had grown from 2 per cent to 20 per cent since the 1990s.

'That's really something completely different than you get here in New Zealand where it's still mostly for export and a lot of the consumer interest is driven by what's available. The price difference is quite a bit different than it is in other places,' he said.

* Kiwi buyers wary of organic food fraudsters ahead of new regulations

* New Zealand organic sector now a half a billion dollar industry**

In the more mature European and British market, supermarkets tend to have 'own brands' of competitively priced organics, like Sainsbury's organic brand SO, which was the first supermarket to launch an organic own brand in Britain. The range offers over 250 organic items.

The same trend towards private labels is happening in the United States, while in New Zealand Countdown has developed its own organics brand, Macro, and Foodstuff's Pams label has a growing organic range.

Countdown is making moves to bring the price of organic produce down, such as the recent deal it made with Bostock to provide its customers with 100 per cent organic Braeburn apples.

'We've been working closely with our organic growers for several years now and these relationships help us remove some of the additional costs of growing organic and pass these savings onto our customers through lower prices,' Countdown's head of produce, Steve Sexton said.

Countdown says its decision to move to certified organic Braeburn apples is a major play to help make organic produce more affordable and accessible for Kiwis. The supermarket is also working with AsureQuality to gain organic certification across the majority of its stores.

But that isn't the norm.

Foodstuffs, which own Pak n' Save, New World and Four Square sells a range of organic food, but spokeswoman Antoinette Laird said organic eggs represented less than 2 per cent of all eggs sold, while standard eggs represented nearly 60 per cent.

Organic fresh milk and cream accounted for just over 2 per cent of sales across North Island supermarkets, while organic flour had just 1 per cent of sales in the North Island.

Laird said that Foodstuffs was seeing steady growth in organics and wanted to get out in front of consumer demand, but organic producers and manufacturers faced a significant investment.

Sainsbury's was the first British supermarket to develop an organic own brand.

'It's a whole new way of farming for some. The stringent certification requirements to claim organic on a product are cost heavy for producers,' she said.

Foodstuffs had stringent certification requirements for organic items sold under the Pams brand, which was audited by certifier Biogro.

Pams organic range of fruit and vegetables had grown over the years to include potatoes, carrots, apples, kiwifruit, onions, tomatoes, plums and blueberries.

'There are plenty of options for organic produce shoppers to get their five plus a day fix,' Laird said.

So, how much do we pay for organics. Here's a breakdown of the cost of organic vs conventional for six everyday items from two supermarkets, Pak n' Save Albany and Countdown Mairangi Bay (accurate as of May 6).

For consumers that want to buy organics but find it too pricey, this blog post gives some tips on how to pay less for organics.

Pak n' Save Albany

Butter:

Conventional, Tararua 500g $4.99

Organic, no option

Chicken:

Conventional, Pams Whole Chicken Large, $12.99

Organic, Bostock's Free Range Organic, $19.99

Milk:

Conventional, Value Standard 2L, $3.36

Countdown has developed its own organics brand, Macro.

Organic, Anchor Blue 2L, $6.29

Organic, Lewis Road Creamery homogenised, 750ml, $3.79

Eggs:

Conventional, Morning Harvest Caged size 8 10 pack, $3.99

Organic, Frenz mixed grade 10 pack, $10.89

Carrots:

Conventional, 1kg, $1.49

Organic, Pams 1kg, $5.49

Baked Beans:

Conventional, Value 410g, $0.75

Conventional, Watties 420g, $1.33

Organics, Chantal 400g, $2.29

Organic, Ceres Low Sodium 400g, $2.39

Countdown Mairangi Bay

Butter:

Conventional, Tararua 500g, $6.50

Organic, Organic Times Slightly Salted 250g, $8.40

Chicken:

Conventional, Countdown own brand 1.9kg, $14.50

Organic, no option

Milk:

Conventional, Countdown own brand Standard 2L, $3.41

Organic, Meadowfresh 2L, $6.79

Organic, Lewis Road Creamery Homogenised 750ml, $4.00

Eggs:

Conventional, Morning Harvest Caged 12 pack Size 7, $5.00

Organic, Frenz Eggs Mixed Grade 10 pack, $10.99

Carrots:

Conventional, 1kg, $2.50

Organic, Purefresh 1kg, $5.00

Baked Beans:

Conventional, Countdown own brand 420g, $0.70

Conventional, Watties 420g, $1.79

Organic, Ceres Low Sodium 400g, $3.10