
28 Feb Understanding the growth and challenges of organic farming
Organic Food is not a new topic, but one which has retained popularity and growth over time. In this Thought for Food article, summer intern Ella Hall explores the advantages and challenges of this production method from farm to consumer.
Organic agriculture, as defined by Organics International, is based on four main principles: Health, Ecology, Fairness and Care. Their definition is, “A production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than using inputs with adverse effects.” This translates to varied practices and regulations around the world, but some general themes on reducing or removing various agricultural chemicals.
From 2000 to 2022, global retail sales of organic food increased from USD$18 to $135 billion. Global organic farmland grew from 35 to 70 million hectares in 2018.
The global market value of organics is currently around $100 billion US. Sixty-three percent of this comes from the US, France, and Germany. In the US, the sale of organic foods hovered at approximately $41 million US in 2018, with a Compound Annual Growth rate (CAGR) of 11%. In New Zealand (NZ), regular organic purchasers make up 10% of the shopping population. NZ retail sales were $285 million in 2020 with a CAGR of 17% from 2014 to 2019.
Globally the main types of organic food purchased are fresh produce, meat, dairy and eggs. Regular organic purchasers tend to be under the age of 44 (except in the US, where the demographic is slightly older), and from people who have a middle income and are working professionals. The most important factors to consumers are that the produce is “good for my health” and “free from residues/spray free”, making up 70% of NZ buyers.
Organic Farming
One of the goals of organic farming is to enhance soil fertility. It excludes most fertilisers and pesticides, some medicines, growth hormones, some food additives, and all synthetic chemicals and Genetically Modified Organisms (GMOs).
Instead, certain techniques are used which preserve the natural environment and foster plant nutrition while conserving soil and water resources. These include crop rotations, intercropping, polyculture, cover crops and mulching.
Pros
Organic farming provides greater long-term soil quality and health compared to conventional farming. Soil stability is 10-60% higher, soil loss or erosion is up to 75% lower, nitrogen leaching is 4.4-5.6 times lower, and water retention and use efficiency are improved.
These results are attributed to the four main principles of soil health. Minimum tillage reduces evaporation and improves the water use with increased biodiversity. For example, the introduction of animal stock on farm or insects in greenhouses and cover crops and mulching help to keep the soil covered and improve water use, while legumes are used to fix nitrogen in the soil. Together, these practices can create better stability, lower leaching, lower soil loss, and increased microbial activity.
Cons
The retail price of organic food is substantially higher than non-organic food. Figure 1 below shows that fresh produce and milk in the US and packed food in NZ can be up to 94% more expensive. Choice is also impacted, with non-organic products having 4 to 9 times the number of items available compared to organic products.
Much of this stems from productivity. On average, in organic systems compared to conventional systems the yield is 20-40% lower for arable crops, 50% lower for horticultural crops, and 030% lower for grass and forage production.
Organic farms require 10-90% more labour than conventional farms, depending on farm type. In general, labour requirement is about 20% higher, with lower requirements in arable and mixed farms and higher requirements in horticulture.

Human Health
There is no clear evidence of a difference in a food’s nutritional value between organic and conventional systems. However, there is consistent evidence that nitrate content is significantly lower in organic produce as fewer synthetic fertilisers are used. In addition, there is some evidence that higher nitrogen applications and some pesticides may decrease beta-carotene levels in some crops used in conventional farming and it is highly likely that certified organic food contains lower residue levels.
No differences were found when comparing the sensory qualities of organically and conventionally grown food when looking at juiciness, sweetness, tartness, acidity, and bitterness, and crunchiness.
Environmental Issues
On a harvested biomass basis, the lower yields in organic farming can mean higher emissions than conventional farming per kg of product, but lower emissions per hectare. However, substantial variation exists between foods.
Organic farming generally has more efficient water use, largely because of soil management. Under severe drought conditions organically managed crops produced 70-90% higher yields than conventionally managed crops in one study.
Organic farming has been reported to provide a better energy input/output ratio, mainly due to the lack of synthetic chemicals. In organic animal production, primary energy use decreases by 15-40%, except organic poultry meat and egg production, which increases energy use by 30% and 15%, respectively. Raising cattle for beef organically on grass, in contrast to fattening confined cattle on concentrated feed, may emit 40% less GHGs and consume 85% less energy than conventionally produced beef.
Conclusion
Organic farming appears better for soil health, biodiversity, and some other environmental indicators. However, yields are consistently lower, with higher labour requirements and more expensive food. Nutritionally, differences appear minimal. Ultimately, consumer values are the driving force for organic producers and are clearly a sizeable market in many parts of the world.