Consumer demand for organic fresh produce currently exceeds Irish supply with sales of organic fresh product estimated at £7 million in retail outlets during last year.
A recent Bord Glas survey indicated that 33 per cent of consumers try to buy organic fruit and vegetables when shopping.
Bord Glas, the Irish horticulture board, estimated that there are 320 organic growers of fresh produce and that 200 hectares (480 acres) are under organic production.
In the National Development Plan, £6 million was set aside under the Regional Programmes for the organic sector and further funding under the Rural Environment Protection Scheme (REPS).
The Bord has already funded its first organic fresh produce enterprise here, Simply Organic Ltd, by providing financial assistance towards the design and development of a brochure, branding, packaging design and exhibition participation.
The company, operating in Dublin and Wexford, grows and markets carrots, broccoli and cauliflower for the retail chains - Dunnes Stores, Musgrave SuperValu/Centra and Petits.
The company employs six full-time and 25 seasonal workers and grows the majority of its crops in Wexford.
It plans to build a 371-metre dedicated organic pack-house in the town.
Mr Michael Maloney, chief executive of Bord Glas, said there was a growing market for organic crops and his board was delighted to support the project.