Wednesday, July 06, 2011

The Price Tag of Organic Food

By Denchi Minh

The added costs of Organic Food is considered the biggest reason why consumers think twice before making the change despite the fact that the numerous benefits of eating organic have already been proven by countless studies. Many consumers even believe that they should be priced lower because there aren't even any synthetic substances or industrial supplements that are being used or added to them. Organic farms use natural methods on their crops and livestock. They do not make use of pesticides, artificial fertilizers, herbicides, growth hormones, periodic antibiotics, or genetic modification. This article aims to enlighten consumers about the reasons why real food is 20%-100% more expensive than traditional food.

Organic Food is costlier when compared to other types of food because its supply is very limited. This is because despite the steady boom in the industry, many farmers still prefer not to switch to organic farming. The main reason for this is the fact that organic livestock and crops take significantly longer time to harvest. The longer it takes for harvest to come, the more operating costs are incurred and the higher the risks of loss due to damage or diseases become. Conventional food is harvested within a shorten span of time because of the use of genetic modification to alter the DNA of the plants and animals. They are also bombarded with growth hormones to speed up their development.

Economics also has a part to play when it comes to why Organic Food is expensive. Whenever the demand is greater than the supply, there is the economic condition called scarcity. In this scenario, the suppliers tend to increase the price of their goods to lower the quantity of the product a consumer will buy. This is because whenever the demand is high but the supply is low; there will always be consumers that are willing to buy the product even if the price is increased significantly.

The various stages that need to be conducted in order to bring Organic Food to the end users also contribute to its cost. The total cost of production for real food is more expensive because of the length of the production stage. The processing and harvesting stages also entail costs that add up to the price tag of the goods. Freight costs also contribute much to the extra cost because since real food is not preserved using irradiation or artificial preservatives, it should arrive at the market sooner. And faster transport equals more costs to the supplier.

Know why organic food is better than traditional food. Get the answers at Organic Food Zen, plus get free organic food recipes and sample menus.

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