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AlterNet.org recently hosted a piece on the persistently high prices of organic foods. Written by Plenty Magazine senior editor Christy Harrison, the article briefly highlights some of the main factors that keep the prices of organic foods such as produce and dairy hovering far above those of non-organics. Citing several agricultural economists, Harrison points out possible strategies for bringing organic products into the mainstream. Particularly interesting is the suggestion that if one third of the American population bought organic products on a regular basis, high costs of processed organic foods such as frozen items or meat would drop to the more reasonably marked up costs of organic fruits and vegetables. This isn’t saying that anything would become ‘cheap,’ but it might make that obscenely priced breakfast bar a little easier to swallow.
Many of the comments that follow the article take the author to task and are easily as thought-provoking and informative as the piece itself.
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9-01-2005 @4:22PM michael said... I call B.S. on that premise. As a former member of the natural and mass-market foods industry I can tell you from experience that.
1. Prices go down when something is made at a lower cost. Now, I imagine some day the "organic" label will be applied to factory farming once agri-corps have their way. But until the cost of producing the food goes down, prices won't go down.
2. Subsidies. I don't know how much they contribute to the price of food. But organics aren't subsidized so much.
3. Retail. Retailers and their non-organic food manufacturers will resist lower prices on Organics.
4. More consumers means tighter supply until more farmers convert their acreage. That's a much longer process than just replanting.
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