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Why Organic Foods Cost More
The Question Everyone Is Asking
Well, perhaps not everyone, but it certainly is a question you will hear from time to time. Why does healthy have to cost so much? The reverse question, then, is also valid: why does unhealthy cost so little?
In a logical world one would think that products that are good for you, and there is little doubt that organic vegetables are good for you, would be inexpensive, and yet they are not. So what gives? Why are health-conscious individuals paying more for produce or meat that has not been genetically modified?
The answers to that question are many, and to begin to understand we must first look at the laws of Supply and Demand.
An Economic Truth
Let’s take a look at Economics 101 as we begin to search for the truth in this matter. According to the Law of Supply and Demand, when demand greatly outnumbers supply, prices of that product will rise. Think of it this way: if I invent a product that millions want, but I only have 10,000 of that product in supply, I can pretty much dictate the selling price of that product, especially if no one else is supplying it. The price will eventually find a ceiling when it is so high that people are unwilling to pay it no matter how badly they want it.
There is an increased demand in society today for healthy, organic foods, but unfortunately for the consumers there is a limited supply. In other words, few farmers are growing organic crops. The vast majority of farming today is done by huge corporations, and those corporations are growing genetically modified foods which are cheaper to grow. The small, independent farmers, those willing to take on the difficult task of growing organically, are few in number and they simply cannot meet the demand. This means higher prices.
But it is not as simple as that. Let us next turn our attention to the cost of growing organic foods.
Organic Means Higher Costs to the Farmer
Because pesticides are not used in growing organic vegetables, greater care and more man hours must be used in growing them. Weeding is often done by hand, weeding that is not necessary when pesticides are used. Preventing insect damage must be painstakingly done by individuals rather than mass-spraying techniques. All of this adds to the cost of production, and that cost is passed on to the consumers.
In addition, the yield for organic foods is about 20% less per acre than for non-organic crops. This is due to the fact that in organic farming crops are rotated to insure that nutrients don’t disappear from the soil. Thus, every year part of the growing area is not used, thus lowering the profits for a farmer.
The same problems exist for cattle and other livestock that are raised organically. Organic feed for the livestock is more expensive, thus raising the cost and ultimately raising the price to the consumer. A ton of organic feed for cattle will cost about $350 per ton as opposed to $220 per ton for conventional feed.
And Additional Costs to Consider
For established farmers, switching over to growing organically is an expensive undertaking. It generally takes five years to complete this process, and those five years mean little or no profit as the soil is prepared, nutrients are introduced where once there were none, and so on. The loss of income during that five-year switch-over means the cost is once again passed on to consumers.
Being certified as organic by the FDA is more expensive that being certified as non-organic; a sad truth but a truth nonetheless.
Consider also that a certain percentage of crops are lost to pests on organic farms, and that loss of productivity…you guessed it….is a cost that affects the price of the produce.
Time Is Money
Because organic farmers don’t use growth hormones to increase production of their crops, they naturally cannot grow their produce as fast as conventional farmers; this severely limits the amount of product they can harvest, and as stated before, limited supply means higher prices.
In addition, smaller crop yields means smaller shipping loads, and smaller shipping loads means a higher cost of shipping. Shipping rates are determined by size; larger loads cost less to ship.
And Then We Have the Government Factor to Consider
Government farm subsidies will lower the cost of farming. In 2008, the House Appropriations Committee made $7.5 billion available for farm subsidies. Of that, only $15 million was available for organic farmers. Obviously, changes need to be made at the Federal level to encourage more organic farming and give farmers an incentive to take on this challenge.
And Then We Have the Retailers
Walk into your favorite supermarket and look at the shelves of food. Now consider a retail truth: every foot of shelving is money to the grocer, and the amount of money that foot is worth depends primarily on turn-over of product. Stated another way, a foot of shelving that carries a product that does not sell is not making the grocer any money, correct? Conversely, a foot of shelving that turns over product at a high rate is making that grocer money and making him/her happy in the process.
Higher price means, generally, a lower volume of sales, so when shelves are loaded with organic products that do not sell in volume, the grocer has a decision to make, and often times that decision is to load the shelves with less-expensive products that are not organic. There is no fault on the part of the grocer; they are, after all, in business to make money. This really is a classic Catch 22 situation; the organic produce would sell more if there was more to sell; since there is an inadequate supply, grocers really must do the only thing that is wise for their business and devote most of their retail space for conventionally-grown produce.
A Glimmer of Hope
In the last forty years, four million farmers have disappeared from the American scene. A Supreme Court ruling in late 2001 concerning patents on seeds pretty much spelled death to many independent farmers and spelled billions of dollars in profits to companies like Monsanto.
But the increase in demand for healthy, safe organic foods has given hope to those independent farmers who are still hanging in there. The demand is there; now farmers must find a way to produce organically at a lower cost. Once that has been accomplished then chances are very good that prices will go down on organic foods and more farmers will enter the fray. New technologies are being devised, and it is not a stretch to believe that soon some of these costs will be lowered.
In the meantime, as we wait for organic farmers to find the answers that will lower production costs, we all can do our part by shopping locally whenever possible. Support your local farmers! If this organic movement is to become viable and profitable, demand must continue to rise and local support must continue. The question we all should be asking is this: is it worth the extra 10% to 40% in price to assure that our families will be eating healthy foods that have not been modified or possibly poisoned with pesticides? If your answer is yes to that question then there is only one option….support the organic movement.
2013 William D. Holland (aka billybuc)
Related
Comments
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Deb, hopefully we will see major changes in the near future both in availability and cost. Thank you!
I must have my organic milk and butter, and I am trying to get there for everything that I can find. However, if it isn't on the shelves, I don't have a lot of option. Here's to supporting our organic farmers!
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zduckman, bravo! I can't think of a thing to add to your fine comment. Thank you!
Great Hub.....thank you. I just wrote a Hub on pesticides in food, and how the average American consumes 10 pesticides per day. I believe the majority of the problem lies in government subsidies. The corn industry among others is propped up by the government while others are not helped at all. The fact that an organic farmer makes more money per acre on their produce....says it all. Remove subsidies, lets farmers compete on a level playing field.
I think how we spend our money, and what we put in our bodies are important decisions we make that determine the course of history and evolution. Vote with your dollars. Vote against Monsanto and for local farmers. Buy local, buy organic, live sustainably.
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austfanani, I feel the same way my friend. Thank you!
I think the price differences are tolerable and I still in favor of organic foods.
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Dianna, very true words.....I haven't been to the doctor for twelve years...coincidence? I think not.
Wishing you a restful and peaceful weekend.
It is a shame the government would not allow more for organic farming. As Jordan Rubin put it: you can pay more for organic food now or pay more for the doctor later. I'm all for organic foods and simpler lifestyles.
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Great points Heidi, but I expect that from you....I didn't know you were a green supporter...now I like you more than ever. :)
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Thanks vkwok...let's hope it catches on.
While organic is the way to go, indeed it is expensive. Since I've tried to garden without any chemicals, I can vouch for the extra labor this requires!
Also, I have tried to promote organic cotton promotional T-shirts in my promo biz, but without success. Sadly, they are too expensive for most clients. Actually, I'd be happy if they decided not to do T-shirts, organic or standard, since I think marketers make purchases like these without thinking of the impact.
Thanks for promoting the green life!
Thanks for sharing this interesting hub. Here's to the movement.
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I agree Alicia. Hopefully we will see major changes in the near future. Thank you!
This is an interesting and important hub, Bill. Organic food producers need to be helped as much as possible, not hindered, as they often are at the moment.
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Dora, that was an interesting perspective. Thanks for sharing that and yes, bulk grain is less expensive for sure.
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It is always my pleasure, DDE; thank you so much.
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Thank you Audrey; I guess I'm a bit surprised that this isn't a major concern for the majority of people. You are right....it costs much more to be sick, and Monsanto is in the sick business.
love,
bill
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Yes they can, Flourish, and it would not surprise me if Monsanto and all of their holdings were in that fund. Thanks for the visit.
The added benefit to buying organic is that we might be encouraged to eat less, since we get less for the money. That said, lots of the organic grain is less expensive when we buy bulk rather than packaged. Good thoughts, Bill.
Why Organic Foods Cost More is an interesting and an informative hub.Definitely a useful hub thank you for sharing this valuable information.
I elect to buy organic vegetables and fruits. When in season, I always buy from our local farmers. I've been supporting them for years. The taste of fresh, organic fruits and veggies can't be beat. I grow my own tomatoes as well as herbs, etc. Yes, buying organic does cost more. But you can't put a price on good health and these days it's more costly to be sick than to stay healthy - at least this has been my experience. Enjoyed the video, especially the first one. Thanks for writing about a huge concern of mine. Much love ~ Audrey
You've made me wonder whether Monsanto is in any index fund I invest in. Hmmmm. People can speak up with their pocketbooks in many ways.
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John, your point is a good one. The price of organic beef is through the roof here in the States...mainly because of the cost of organic feed.....it is an endless cycle I'm afraid....changes, and I mean huge changes, will have to happen before we see significant difference in cost. Thanks for telling it like it is in Australia.
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Theater girl, I think your theory has much merit....there have been some interesting changes in health over the past few decades. Yes, there have been medical advancements, but there have also been an increase in allergies, asthma, etc., and experts are saying it is because of diet. I think you hit the nail on the head quite frankly. Thanks for sharing your thoughts.
Great and much needed hub Bill. I also second watergeek's comments and many of the others. There have been protests against Monsanto all over the world in the last few months and I hope some Governments are taking note. They are always hesitant to upset major corporations however and Monsanto has it's fingers in so many pies we don't even know about.
We grow some of our own vegetables organically but not enough all year round for what we need at this stage. Most of what we buy does come direct from local farmers however who do grow organically. The main problem we find is the cost of organic meat. We have one organic butcher in town who's prices are approximately double what we can get it for elsewhere. we can afford to pay a little more for organic fruit, vegetables, cereal etc, but not always meat, unless we decide to cut down the portion sizes we eat each meal. We can get pork direct from a friend who kills their own pigs and still try to buy some organic meat, such as chickens...but as for beef or lamb that's not easy. Anyway you explained the reason for high prices very well. Voted up and shared.
I try very hard to limit as many dyes, pesticides and chemicals from my family's diet. I do this by purchasing as little processed foods as possible, and buying organic and local when possible. Paying attention to the "dirtiest" vegetables allows me to purchase organically when necessary and conventional in other instances. My generation (I am 41) was one of the first to be raised by more processed food than any previous generation. I wonder if this is why children of my peers are being diagnosed with more allergies, behavioral and academic issues. I am not sure if my theory has merit. I am just a mom. And each time I limit something foreign that goes into my children's mouths I am happy.
Thanks for sharing this. Great article!
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I know the feeling Marcy; it takes serious commitment to buy organic. :) Thank you!
Great work, Billy - next time I wince at some prices, I'll think of your hub!
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Nathan, the concept of Monsanto "investing" in Africa assaults me on so many levels. The only investment is to their pocketbooks...and the government knows it and does nothing but continue to pass legislation that helps Monsanto. I am waiting for the day when the American public wakes up. Thank you for sharing your thoughts.
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Bobbi, thank you! My grandparents were farmers too and it breaks my heart to see who things have "progressed." Hopefully more and more people will demand changes in the way food is produced in this country.
bill
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Thank you Carol! This bothers me on so many levels. I come from a farming family....thank God they are dead now and don't have to see what has happened to the American farmer.
I admit to not knowing too much about genetically modified foods, but from from what I've heard, especially of companies like Monsanto, I don't like what I hear. I think that the way Monsanto and other companies "invest" in Africa does more to contribute to poverty and starvation there then anything they have done to solve it.
I do try to buy organic, and I have a garden behind my house, where I grow tomatoes, squash and cucumbers. It can be hard work, but it's worth it.
Bill,
My Grandfather was a farmer, so I know a little about it. I do not remember any issue probably because I was too young.
But my Grandmother Knight had her private garden where no one was allowed to put anything chemical on her veggies. I remember she used a lot of Lady Bugs to eat the other bugs, mainly aphids and I would help pull the worms off her vegetable leaves of eggplants and others.
Now that I think about it---she was always finding different ways to grow her veggie. She would stake down old sheets and punch holes in it to plant her little plants she grew from seeds in the smokehouse. She said that it would keep the weeds out.
I will stop talking now. Liked you article---it was very detailed.
Bobbi Purvis
I try to buy organic when possible---not always feasible. It is too bad and I had no idea that 4 million farmers have disappeared. To me that is sad as America is built on fertile land to feed all..I guess that is a dream. Many people are starting their own gardens and that is encouraging... As always Bill not only well written but well-researched.
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Sheila, I learned a thing or two doing the research for this. I hope things change for the better soon. Thank you!
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Lizzy, you raise a valid and all too real scenario. There are people who simply can't afford to eat this food. I've been there and I do understand. Does this make me mad? Yes! Does it make enough people mad to force changes? That remains to be seen. Thank you for your great comment.
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ologsinquito, thank you for that....it really is a situation that can have serious health costs in the long run. I have no faith in big agribusiness....I don't think for a second they have our health benefits in mind. That only leaves me one alternative.
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Great line, Audrey...so does cancer! Nothing to add to that my friend. Thank you!
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Lizzy, thanks for weighing in on this. It is all about supply at this point; increase supply and the prices will go down...when that will happen is anyone's guess, but your suggestion certainly has merit. I'll do my part this summer.
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Thanks Glimmer! It is an interesting dynamic of supply and demand; hopefully things will change in the future.
This is some great information. I had already guessed supply and demand was responsible for the higher costs, but I didn't realize there were so many other causes.
It is maddening. We are seniors on a fixed income. It is not a matter of "giving up entertainment to afford healthier food." We can't even afford entertainment to begin with. We are virtually house-bound most of the time, and our "outings and entertainment" consist of grocery shopping or doctor visits.
My husband suffers from heart failure; is being evaluated for a heart transplant, and is supposed to eat 'healthy' but we can't afford it. Something has gone very wrong in this country, and the big agri-business chemical-pushing corporations such as Monsanto are directly at fault. The bottom line cause is unfettered greed at the top of these corporations, who care more for their bank statements than for the health of the people for whom they produce food. It disgusts and sickens me.
We have tried growing some of our own produce, but, at our age, it is difficult; we don't have the stamina to maintain much of a garden. It is, indeed, the proverbial 'catch-22.'
Voted up, interesting and useful...need a button for "does this make you mad enough to protest to the government or write letters to the corporations responsible" ....
This is an excellent article that has raised many good points, and forced us all to look at this in a new light. It's gotten to the point where we can't afford not to buy organic food for our families. I'm pinning this one to one of my organic food boards.
I love organic produce and buy it often. I know it costs more, but so does cancer--great hub as always Bill!
I thought I shared something on fb a couple of weeks ago, but I guess I didn't. It was about a farmer who produced a record number of bushels of corn, grown organically. He out-produced the GMO varieties and everything. I think that if more of us could farm on a smaller scale, we could squash out Big Agra. The demand is certainly there, and selling on a local level would cut costs and make food more affordable to a wider base. Unfortunately, it isn't financially possible at the moment for those of us who would be willing and delighted to take that step. Maybe someday soon.
It's all about money when it boils down to it right? From the producers to the consumers and everyone in between. And I say that even though I understand the labor needs are greater in organics. I like buying organic when I can but if you go into my local market, their is a tiny little section tucked away in a corner with organic veggies/fruits and they look like they have been sitting there for weeks. Interesting hub Bill.
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Audrey, thank you! It is a choice, isn't it? Give up some entertainment to eat better? Hopefully more and more people will begin to see the wisdom in eating organic foods.
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Well, Marlene, the government has helped a little....fifteen million out of two billion....the big money is with the agribusinesses and the government supports them greatly. As for growing our own, it is work. No doubt about it. I'm looking at my garden right now and thinking about all the hours I need to spend out there. Sigh!
blessings and thanks my friend
bill
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LadyFiddler, I certainly understand and everything you say is true...cost is a huge factor for many people. Thanks for sharing your thoughts.
Hi Bill - I think I have a romance with organic food and love to visit the stores who have all organic or at least an area in the store for it. It makes me feel so great to eat it. I know a lady on a strict budget who cuts out other items to buy some organic food. This article is chock full of great info, and I hope many people read it. Thank for sharing this information and for the well laid out easy to read hub. Blessings. Audrey Pinning
Being a backyard food gardener myself and trying to do it all organically has been a challenge. I'm glad I chose organic because I believe it is healthier, but it does take a lot of effort. No matter what, it is all worthwhile. I'm glad to see that the government has stepped in to help farmers produce healthier, organic foods.
Interesting hub billy well laid out. Just about two days ago i was saying the same about healthy food costing so much and the foods that kills you are cheaper. Most people would rather go with a cheaper item because of their monetary funds or family size.
I think a lot of times we hear about healthy eating which is indeed good, but not everyone can live up to those standards even if they would like to they cannot afford it.
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Joelle, we grow our own and what we don't grow we buy organically....it is the only logical option for anyone concerned with their health.
Nice pun...I caught it. LOL
bill
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BNadyn, thank you very much. That's what I wanted to achieve...easy to understand. The movement is growing but it will take a long time for it to become mainstream.
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I believe it is, Jackie. Now I understand that a poor family might not think so...but....pay now or pay the piper later. :) Thanks for your thoughts my loyal friend.
With all the big machinery, pesticides, fertilizers and geneticaly modified seeds, we ended up with bigger and cheaper produces but the they are also full of harmfull substances, depleted of minerals and vitamins and with not so much taste. I prefer the organic vegetables. I think the way to go is to support our local organic producers because the food doesn't have to travel so much and will keep all the good qualities necessary to have healthy food on our plates.
The best is also to produce some food ourself. I love the idea to pick a tomatoe fresh from my garden and have a salad with the tomatoe still warm from the sun :-)
Great hub ... as always! Food for thought :-))))) I couldn't resist that one... LOL
Very useful information here! Eating organic food and using organic products has become more important for us for the past couple years. My family has been buying organic more and more now and I'm glad that buying local organic food is accessible where I live. Great topic to discuss and you pointed out all the solid facts why organic costs more in a well-explained, easy to understand article.
It has always seemed strange to me that the more bad for you stuff they stop putting in food the more it costs you! These low calorie things don't fool me though, the reason they are half the fat and calories is because although they are in a regular size box, there is only half as much food!
I love buying local and organic; it is well worth reworking a budget. ^+
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Faith, by then we will be on our farm and we'll leave the light on for you. :)
blessings
bill
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Very true, Deb, and we do, and we love it, and I'm trying to encourage more and more people to do it. Thanks for the drive by.
Great hub. To answer your question, yes! Of course, another option is to grow your own organic food. There's nothing more local than what is raised in your own backyard. And it's economical, too.
Thank you so much for the invitation, dear Bill. I know you and Bev are hospitable people no doubt. I do hope to get to travel within the next couple of years!
Hugs,
Faith Reaper
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Eddy, one of the gifts I have received from HP is getting to know people from other cultures, and it has been very interesting learning that our problems are the same worldwide. I guess that falls under the category "misery loves company. " LOL...thank you my dear.
billy
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I Am Rosa....your comment had me laughing although it's not funny....this is infuriating and unacceptable, and yet the public allows it to happen....and supports it!
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Pearl, it was a sad day for this country when Monsanto was awarded patents back in 2001 and the small farmers were pushed out of business. We created a monster that we may have trouble putting back in the cage. Thank you my friend.
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Faith, this movement will take time. With the economy in the toilet I understand why people go for cheap....I did at one time too...now my health is more important to me.
Come on out and visit; Bev and I will show you around.
blessings always
bill
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watergeek, I'm glad you weighed in on this....the movement is increasing. This is a cultural shift of huge proportions and it will take time. What you say about agribusinesses and government is right on; what amazes me is that more people don't care.
Whichever part of the world we live in the story is pretty much the same ;and this great article reflects this.
Interesting, useful, voted up and shared here Billy.
Keep up the good work and here to wishing you and bev a great day .
Eddy.
Eddy.
... and somehow knowing this just ticks me off more .... :-/ I'm looking forward to moving somewhere I can have my own garden again :-)
Billy, it's a sad fact that change, particularly in this country, is a very slow process. Add to that the power of the industrialized agricultural lobbyists in Washington, and we can see why this is a steep uphill battle.
On the bright side, I have heard news reports that Monsanto products are being banned in Europe. People 'in the know' realize non-GMO is the only way to go. We just have to keep gnawing away at the guys up on Capitol Hill!
Thanks for covering so thoroughly this important subject. Enjoy your day, my friend ;) Pearl
Excellent article Bill! Thankfully, we do have a lot of farmer's markets around here to support, but not many organic supermarkets yet. I read an article about a lovely place, and that is Asheville, NC, where doctors love to retire, as it is not only beautiful beyond words, but they have nothing but organic grocery stores, which do cost more for the consumer, but at least the doctors realize it is healthier for one to eat organic, but then they can easily afford it too.
We can all make a choice and adjust our budget for healthy food and cut out unnecessary things where we are wasting our money on for sure.
I would love to live there.
Up and more and sharing.
Faith Reaper
Interesting article and great photos, Bill. This hits close to my heart, since health has been my top priority in life for years. Yes, I eat organic. And there's another side to this whole cheap food scene.
Our government loves the big agribusinesses. They help stimulate the economy in a huge variety of ways:
* Purchasing big machinery, herbicides, pesticides, fertilizers, GMO seeds (over and over, since they don't reproduce).
* Supplying canned and frozen goods manufacturers, biofuels refiners, meat and dairy processors with cheap raw materials.
* Decreasing human and pet health, resulting in higher purchases of pharmaceuticals, increased physician, hospital, and vet care, and stimulation of industries like diet and weight loss supplements.
One could even say the production of cheap food is supporting a good third of our economy today, which says something really sad about our culture . . . except that an increasing number of people are now going organic.
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I agree, Sha, obviously, but I suspect the immediate gains of cheap food outweigh health concerns for many Americans. That may change eventually, but change comes slowly as you know. Thanks for your thoughts.
Bill, as you say, we are in a classic Catch 22 situation. It's healthier in the long run (and the short run) to buy organic foods, but many families are still trying to stretch the almighty dollar. I think if America looks at the potential cost of heath issues related to tainted foods, the extra cost for quality, organic foods is justifiable and more cost effective in the overall picture. Just one more reason to support our local farmers.
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Thank you Victoria. Maybe one day we won't have to pay quite so much.
Oh, absolutely! You have to pay for quality! Nice job!
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Thank you Ann! I am jealous, of course, of your long weekend. Have a wonderful time my friend. As for this article....once a teacher always a teacher. :)
bill
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Dabble You, I suspect that many don't care....most? I don't know....I know we have a lazy society that wants fast and cheap....sad but true. Thanks!
Same here of course, though I don't think we're quite so far down the GM road. This household buys much more local produce now and also as much as possible without additives etc and from Britain (preferably England!) rather than from abroad (that includes Europe as far as I'm concerned).
There is no other way to turn the tide apart from having land on which to do your own thing.
Great hub, setting out the facts to educate us all; something you do so well.
Off for a long weekend tomorrow so hope you have a good one! Ann
Organic means more work is needed to maintain a farm and the appearance of an organically grown food usually look a lot less pretty. Can consumers really tell the difference between an organically grown product and not, on their own? I'm guessing that most will not and many consumers may not even care.
Nice hub, by the way. :)
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So am I, breakfastpop...so am I. :) Thank you!
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Mari, I'm sure you know a few of these farmers. It is a struggle and I have nothing but respect for those who fight this battle daily out in the fields. Thanks for stopping by.
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Thanks wilderness, but I'm not looking for answers....just stating the facts. I'll pay more and skip the cheap. Thanks!
I try to buy organic as much as possible and I am willing to pay more for it.
Our area is choc full of local farmers, though they have a hard time growing organically, they still battle GMO all the way. Oh, and glad to see Bessie is alive and well. ;) Thanks!
You've listed several very valid reasons for the higher pricing, but the #1 is almost certainly the loss of productivity. Farmers simply cannot get the same, or even close to the same, yield from an acre of organic growth as non-organic.
And THAT is almost the sole reason for the non-organics we eat so much of - they are easy, quick and cheap to grow, whether plants or livestock. We value the "cheap" and want it - let the prices of all foodstuffs jump even 30% (and many organics are more than that) and a lot of people will starve. Certainly the exports will end, and the people that were eating them will be in massive trouble.
Nor do I really see much in the way of an answer to the higher price coming forth. Greater supply (more organic farmers) will help a little, but remember that the reason for the GMO's and other "improvements" is cost. The answer that you're looking for is one we already have, but don't like.
Great article, I will be working on a commercial venture today where we will be addressing the supply side and if demand is there for about 40 acres of organics produce. Labor intensity will be a major focus.
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Janine, you are fast. Thanks for being here; let's hope the price goes down in the future.
Totally support the organic movement here and will tell you I do try my best to buy organic whenever I can. Thank you though for breaking it down simply and explaining this to us all today. Hope you are having a great start to your morning so far, too Bill.
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