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Pete Hodgson said the organics industry was showing strong signs of growth, with the sector leveraging off New Zealand's competitive advantage and national reputation for quality primary products.

"The value of the organic export market increased from $70 million to $120 million between 2005 and 2007, and the domestic market is now valued at $209 million per annum.

"Organics Aotearoa New Zealand is helping capitalise on this growth by uniting many organic producer groups and providing a cohesive national identity for the sector."

In 2006 the government provided seed funding of $1.5 million over three years to assist the organisation to get up and running. That funding was intended to bridge a funding gap until Organics Aotearoa New Zealand became self-funding.

"However for various reasons it has not been possible for the organisation to become self-funding in that time. This new funding is conditional on Organics Aotearoa New Zealand adopting a self-funding strategy, and upon performance of that strategy.

"This is an important, growing sector that has great potential for economic growth, and Organics Aotearoa New Zealand is playing an important role," Pete Hodgson concluded.

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