Organic food producers in New Zealand are battling to gain consumer awareness of labels and the official marks of certification that differentiate their products from others.

Organic food producers are battling to gain consumer awareness of labels and the official marks of certification that differentiate their products from others. The high price of organic food is also still a barrier to shoppers in New Zealand.

Despite the recent rapid increase in demand for organic food, Massey researchers have found confusion among consumers about organic goods and a lack of market intelligence about consumer knowledge and attitudes to organic food.

There are three well-established logos used in New Zealand to show organic food has been produced according to internationally recognised standards. Certification labels from BioGro, AgriQuality and Demeter can be found on New Zealand-produced food, along with labels from dozens of international certifiers on imported organic food. These labels represent certification standards that differ in what is required, permitted and prohibited in organic food production, preparation and sale.

The all round muddy picture of the organics market is of concern for producers and the certifiers, says commerce lecturer Dr Andrew Murphy who surveyed 100 consumers on the subject.

“We know little of consumer awareness of organic food properties that may differentiate the organic from the conventional, such as the absence of pesticides, fertilizers and preservatives,” says Dr Murphy.

“The current knowledge base of consumers is a significant limiter on the size of the domestic market. Awareness of different labels is vital if organic products are to continue to attract market premiums.”

Dr Murphy interviewed food shoppers at supermarkets and Auckland’s weekend markets where organic produce is typically available. His study is ongoing but he says the initial results confirm market research is lagging far behind the growth of the industry.

Dr Murphy found consumers had little knowledge of certification systems and labels and only 21 per cent named a certifying organisation. However, once prompted with a range of seven labels, the respondents showed high recognition of New Zealand’s largest organic certifiers.

Consumers gave top priority to personal benefits in their reasons for eating organic food, including perceived direct health benefits, taste and quality, and avoiding genetically modified foods. Much lower on their list of motivations were the well being of workers, farmers and the environment.

Ninety-four per cent cited high prices as a barrier to purchase, for 30 per cent seasonal availability was a deterrent, while 23 per cent indicated perceptions of poor quality due to the appearance of some organic produce.

The Massey study shows a pressing need for much more research on the organic market and consumer perceptions.

Dr Murphy says interest in and demand for organic food in New Zealand has doubled in the past three years to an estimated $260 million, with a further $120 million in exports. Globally, sales of organic food were valued at $60 billion in 2006, with many key markets growing by more than 20 per cent per year.

He says for more farmers to be encouraged to convert to organics and capture greater margins, consumers must perceive they can distinguish organic foods and value them more highly than non-organic foods.