11 Sept 2006

New Zealand consumers are falling behind their international counterparts who are embracing the wave of "ethical consumerism", critics say.

In countries such as England, the growth in "new" or "ethical consumerism" has seen people embrace organics, farmers' markets, and fair trade products.

In Britain, sales of "ethical products" and services increased by 15 per cent in 2004 to $25.8 billion, as large shopping chains including Sainsbury's, Tesco, and Waitrose moved to meet demand.

Globally, there is a queue of companies trying to tap into the market.

Market researcher Jon Carapiet said that, unlike Britain, New Zealand had not experienced a major food scare such as mad cow disease, which acted to change people's attitudes towards industrial-style food production.

"There is an education job for the local industry to explain what the difference is between organic and other products," he said.

The environmental impact of food that travelled thousands of kilometres– "food miles" – through carbon dioxide emissions could be huge, Carapiet said.

Shopping locally, buying organic, and asking about the origin of food were steps people could take to meet the goals of ethical consumerism.

Consumer Institute chief executive David Russell said, while New Zealand was behind Britain in terms of embracing organics, consumers here had greater access to fresh fruit and vegetables.

The cost of organics could be a big problem for many consumers.

However, he was sure that more people would embrace "new consumer" products as the environment and use of non-renewable resources became a bigger issue.

"If there is demand you can bet your bottom dollar that large shopping chains will get more involved," Russell said.

Trade Aid general manager Geoff White said its revenues had increased in recent years as people became more aware of issues such as the slave labour used to make some products.

The uptake of fair trade coffee showed how successfully consumers' concerns about labour practices could be plugged in to.

"I wonder if there's a supply issue in New Zealand in terms of the quantity and range (of organic products etc) available," he said.

Green Party MP Sue Kedgley said there was a growing number of consumers concerned about how their habits affect the environment.

"There is a whole sector of the market who don't purchase on price and are worried about food miles and animal welfare," she said.

A Consumer Magazine report this week said food miles were not a black-and-white issue.

"If we grow crops that are unsuited to our climate in a bid to avoid imports then we'll waste resources and damage our own environment," the magazine said.

Kedgley said estimates had shown organic farming was up to one-third more energy-efficient that conventional farming.

It made sense for New Zealand to position itself as having the most environmentally friendly and energy-efficient farmers in the world, she said.