Knowledge and Consumption of Organic Food in New Zealand
Andrew Murphy, Massey University
Abstract
Despite the increase in demand for organic food in NZ, research into consumer knowledge
and attitudes has not kept pace. We know little of consumer awareness of organic food
properties that may differentiate the organic from the ‘conventional’, such as the absence of
pesticides and fertilizers in production, and preservatives in sale. Since this generally cannot
be determined at the point of sale or consumption, the organic certification label stands as a
proxy. Consumer awareness of differing labels is vital if organic products are to continue to
attract market premiums, critical to the rapid growth of the sector. This paper presents
research results from interviews with 100 Auckland consumers for on their consumption of
organic food, and their awareness and knowledge of the food qualities and the certification
schemes that underpin the organic food system.
Introduction
Interest in and demand for organic food has increased steadily if not rapidly in New Zealand,
relative to the rapid growth internationally. Globally, sales of organic food were expected to
exceed US$40b in 2007, growing by 10% per annum, with some markets growing by more
than 20% per year (Organic Monitor, 2007). Contributing to this rapid growth internationally
has been the increased involvement of large multinational corporations, notably Heinz, Kraft
and Wal-Mart.
Statistics for the growth of the organics industry in New Zealand are patchy. The best
estimates are derived for exports of organic food, both fresh (especially kiwifruit since 1990
and apples since 1996) and processed (particularly Heinz Watties frozen peas and milk). A
recent study (Grice et al, 2007) suggests that exports have risen to NZ$130 million in 2007
from NZ$75m in 2004, and the domestic market has increased sharply to an estimated
NZ$259m ±$50m, based on a national survey of organic consumption (Figure 1).
NZ$m
300
Export sales
250
Domestic sales (estimated)
200
150
100
50
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source: data from BioGro (www.biogro.co.nz/main.php?page=179) and Grice et al (2007)
2214
Figure 1: New Zealand organic food sales, 1997-2004
The organics sector is still small, with organic food production accounting for one quarter of
one percent of the agricultural land in New Zealand (Sue Kedgley, Green Party spokesperson,
2006). The industry aims high, however, with a target of NZ$1b in production by 2013, an
ambitious goal set by the new Organics Aotearoa NZ umbrella organisation. This goal is
attainable through export earnings if Fonterra is able to convince enough dairy farmers to
convert to organic milk production, for milk and cheese exports. Supply constraints have also
been noted for peas and apples, with virtually all NZ production destined for export markets.
Consumer Attitudes and Knowledge
Research into consumer knowledge and attitudes has not kept pace with the growth of the
industry, particularly in New Zealand. Work has been conducted into farm operations,
including farmer attitudes and the processes and economics of conversion (Fairweather, 1999;
Fairweather et al, 2001; Fairweather and Campbell 2001, 2003). Much less is known about
the awareness by New Zealand consumers of the scale and potential of the New Zealand
organics industry in either production or retail spheres. Little is known about the awareness of
New Zealand consumers of the properties of organic food that differentiate ‘organic’ from the
‘conventional’, and elevate the margins for organic food producers and retailers, or
knowledge of the various certification schemes available in New Zealand and elsewhere.
While this might appear to be a technical problem, certification lies at the heart of the success
and difficulties experienced by organic food producers and marketers.
Research internationally has pointed to a range of motivations behind organic food purchase
and consumption (Hughner et al, 2007). Squires et al (2001) report the importance of health
concerns, environmental concerns and concerns for the nature of conventional food
production, although the concern for the environment was matter a “personal eco-identity” (p.
403). Baker et al (2004) also find the importance of personal health, enjoyment, productivity
and achievement, along with the desired avoidance of genetic modification. Surprisingly,
Baker et al find no strong associations of ‘taste’ and the
‘enjoyment of food’ with any Rokeach terminal values,
although this may be an artifact of their model
constructs or sample. They also find a notable absence
of primary concerns about the environment for the UK,
although this was strong for Germany. Makatouni
(2002) and Zanoli and Naspetti (2002) likewise find the
importance of health concerns for UK and Italian
consumers respectively. Zanoli and Naspetti (2002:
644) used a means-end chain model, following Gutman
(1982), to link product knowledge and perceptions of
product attributes to self-knowledge and values (Fig 2).
A significant limiter on the size of the domestic market for organic products in New Zealand
is the knowledge base of consumers. Consumer knowledge has been divided into five
components (Blackwell, Miniard and Engel, 2006): product knowledge; purchase knowledge;
consumption knowledge; persuasion knowledge and self-knowledge. For the purposes of this
paper, the critical knowledge constructs can be summarized to knowing what products/brands
are available, from where and at what price, what to do with them, and how they fit with the
2215
consumer’s self-conception/identity.
In order to value organic foods more highly, and thus encourage more farmers to convert to
capture greater margins, consumers must perceive they are able to distinguish organic foods
from ‘conventional’ (also known as ‘industrial’ or ‘chemical’) foods. This can be done in
several ways: (i) the use of identifiably organic product brands, such as the “Sainbury’s
Organic” range (UK); or Only Organic babyfood (NZ); (ii) the use of certified organic labels
(Figure 3) attached to qualifying products; (iii) the placement of organic foods in identifiable
sections in stores or markets, perhaps combined with shelf markings or information; (iv) the
selection of identifiably organic channels (organic farmers markets, organic food shops). The
first two methods count as product knowledge, while the second two fall under purchase
knowledge.
It purportively matters to consumers how their food is produced as much as (or more than)
how much it costs and how it looks. This process knowledge, leading to a intrinsically
differentiated product, at least in perceptions, is to a large extent determined by the process of
of certification. Twenty-two per cent of British consumers cited food safety as their primary
purchasing trigger for organics (Soil Association, 2003). However, “taste” and “quality” were
more important motivations for consumers to choose organics over conventional products
(Soil Association, 2003). Quality is supplied to the consumer through what is ostensibly not in
the product (pesticides, preservatives) and assured through certification (although this only
applies to the production process, rather than the end product).
Certification
Organic foods are constructed as “safe” or “healthy” foods through a process of certification
and labelling, through which they offer a sense of security for an increasingly anxious or
health conscious consumer (Cicia, Del Giudice and Scarp, 2002; Zanoli and Naspetti, 2002).
The organic food sector has benefited from the establishment of ‘organic’ as a multifaceted
and multilayered signifier: of reassurance of the process of production; of the ‘fairness’ of the
product to the environment and society; and of the distinctiveness of the sector as a whole, as
a ‘brand’ (Figure 3). Meuwissen et al (2003: 53) define certification as ‘the (voluntary)
assessment and approval by an (accredited) party on an (accredited) standard’. The ‘standard’
must be meaningful to both consumers and producers, as both desirable and attainable, and
the accrediting ‘party’ must be credible in ensuring said standards are adhered to. Jahn et al
(2005: 57) term the resulting certified mark as a ‘quality signal’, that in turn enables higher
margins. Establishing and maintaining a meaningful standard, and the credibility of the
certifier, are essentially exercises in brand creation.
A
B
C
D
E
F
G
A and B are accredited to IFOAM as recognized organic certification systems; C is the ‘bio-dynamic’ label,
similar but not identical to ‘organic’; D is the largest certification label in the UK certified by Soil Association
Certification Ltd (SACL), operating internationally. E can be applied to products that adhere to a list of
‘sustainability standards’, according to Green Tick Certification Ltd; F is used with non-food products that are
more sustainable than their peers; G is the international fair-trade logo.
Figure 3: Organic and Non-organic Certification Labels
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Research by the UK’s Soil Association revealed that UK farmers overwhelmingly chose to
use SACL, despite it being the most expensive and rigorous certifier, due to high customer
recognition. However, there is little consumer research to determine what consumers know of
the certification systems, in the UK or NZ, and any differences there may between them.
Methodology
Customers were interviewed at a range of food outlets in the Auckland region: outside
supermarkets and food stores, at farmers markets, and at food festivals. In total 100 customers
were interviewed face-to-face in March and April 2007. Most participants had some
experience at purchasing organic food (93%), with 66% purchasing or planning to purchase
organic food that day. The sample was biased towards organic food consumers for two
reasons: the choice of location for interview (particularly the festivals and markets), and also
interest in participating in the study. Respondents were overwhelmingly female, in line with
findings elsewhere (Hughner et al, 2007), though household income was not particularly high
(Table 1).
Table 1: Sample constitution
Purchase
Organic per
Food Shop
Every time
Most times
Sometimes
Hardly ever
First time
Never
Response
%
2
22
37
22
10
7
100
Gender
Male
Female
Response
%
27
72
99
Household
Income
(NZ$000)
Up to $10k
$10-30k
$30-50k
$50-70k
$70-100k
>$100k
Response
%
2
3
15
35
33
12
66
Qualitative comments were also recorded in response to questions on organic and non-organic
label perceptions, reasons for purchasing organic food, and price perceptions. These are not
reported in this paper, which presents a first-cut of the results of this study.
Findings
Consumers prioritorised personal benefits from the consumption of organic food, including
perceived direct health benefits, avoiding potential problems from consuming genetically
engineered foods, and perceptions of enhanced taste and quality (product knowledge). Much
lower in unprompted mentions of motivations were macro concerns about the well-being of
workers and farmers, and the environment (self-conception and values). Individual concerns
were most prevalent in mentions of barriers also, with higher prices the overwhelming
favourite, followed by poor availability due to seasonality, and perceptions of poor quality
due to appearance (Table 2).
Consumers had little knowledge of certification systems (process knowledge), with 21%
unprompted mentions of certifiers, and a further 4% mentioning either a fair trade or organic
food brand (such as Scarborough Fair or Watties’ organic range) or a non-organic certifier
(Rainforest Alliance, Environmental Choice). Respondents were then prompted with 7 labels
(Figure 3): four organic certifiers (BioGro, AgriQuality, and Demeter of NZ and the UK’s
Soil Association); the Fairtrade label, and environmental sustainability logos (Environmental
2217
Choice NZ and Green Tick Sustainable). Respondents were asked to rate their trust in
recognized labels on a range of criteria (from 1 very low to 7 very high). Recognition of the
largest NZ organic certifiers was high, but surprisingly so was the apparent recognition of the
Green Tick, administered by a small company in Kerikeri, most likely seen on ‘ecostore’
cleaning products. The Fairtrade logo was not as widely recognized as expected, given the
range of goods carrying the mark and international exposure (Table 3). [There were too few
mentions of Demeter and Soil Association (7 and 3 respectively) for inclusion in this table.]
Table 2: Key Benefits and Barriers for Organic Purchase and Consumption (% mentions)
Benefits of Organic Food
%
Barriers to Purchase
%
Better for own health
85
Higher prices
94
Taste and Quality
72
Seasonality
30
Avoiding Genetic Modification
71
Don’t look as attractive
23
Avoiding additives/colouring
63
Poor range
21
Locally grown
61
Not available
Avoiding pesticides
57
Not as productive
1
Better for (farm) environment
31
Don’t last as long
1
Better animal conditions
29
Use migrant labour
1
Seasonality
16
Better prices/wages for farmers/workers
15
4
Perceptions of these labels varied, with BioGro perceived as most attractive for environmental
and health appeal; BioGro and AgriQuality together for “localness”, AgriQuality for taste,
and Fairtrade for worker friendliness. Despite its relatively high recognition the Green Tick
was not highly regarded, rated below average for all attributes, significantly so for most.
Despite the relatively small sample size, the findings are in the most part commensurate with
expectations.
Table 3: Label Perceptions (multiple mentions permitted); 1 = very low to 7 = very high
Means
Environmentally friendly
Worker friendly
Health-conscious
High quality
Inexpensive
Local
Tasty
Attractive
Sample Responses
Aided Recognition
AgriQuality
Bio-Gro
Green
Tick
Environ.
Choice
Fairtrade
All
5.8
5.1
5.7
5.5
4.2
5.6
5.8
5.1
6.0
5.7
6.2
5.6
4.0
5.6
5.5
4.9
4.9
4.4
4.8
4.6
3.8
4.4
4.6
4.5
5.6
5.1
5.5
5.1
3.8
5.4
5.0
4.6
5.4
6.2
5.0
5.3
4.0
3.6
5.0
4.8
5.5
5.2
5.5
5.2
3.9
5.0
5.2
4.8
36
56
42
59
28
40
19
25
23
40
158
-
Key: #: significantly greater than ratings for all; #: significantly lower than ratings for all
(significance determined via t-tests of mean differences, α=0.05)
2218
Conclusions
This paper presents first-cut results from interviews at a range of food channels around
Auckland, on the consumption practices, attitudes, and knowledge of organic food consumers.
It reveals that organic food consumers have a low top-of-mind recall of organic (certification)
labels, but prompted recognition was much higher. Consumers prioritorised personal health
concerns over the environment, with cost the overwhelming barrier to further consumption.
Consumers had more favourable perceptions of BioGro, New Zealand’s largest, oldest and
farmer-led certification body, with little (and mostly unfavourable) awareness of Demeter, the
bio-dynamic standard. In the quantitative data consumers could distinguish organic labels
from other environmental labels (Fairtrade and Environmental Choice), although qualitative
comments suggest there is more confusion than the quantitative data indicate. This calls for
further research into consumer perceptions and knowledge on the values of organic food.
2219
Acknowledgements
Thanks go to Sandy Bulmer, Massey University, for her valuable assistance in data entry and
analysis, and to Eileen Whitta and Janelle Soar for their assistance in data generation.
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