Morocco and Greece are major producers of oregano, along with minor production from a range of other European countries. Mexican oregano is generally considered to be of poorer quality and is not as valued on the world market. A certain amount of import substitution could be expected but New Zealand production would largely be destined for the export market. Most bulk herbs are produced in countries with low labour costs, so the challenge for New Zealand growers is to produce crops of superior quality at a competitive price. A major problem for New Zealand growers targeting traditional markets is the high cost of transport of bulky, dried material.
Oregano is a popular culinary herb, used fresh or dried.
For example, the US imports around 5000 t in total of dried oregano annually, divided equally between European and Mexican types. Oregano has also been reported to be showing the most growth in usage of the traditional culinary herbs. This trend is linked to the increasing popularity of pizza and Italian and Mexican cuisine in the fast food and restaurant trade. There is considerable potential for the production and export of fresh and frozen oregano. Use of fresh and frozen herbs in preference to dried material worldwide is increasing, particularly in the catering industry.