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Why Does Organic Food Cost More?One of the first things consumers notice when they start purchasing organic food are the higher prices at the checkout. Some items may cost 15% - 60% more than their non-organic counterparts and it can be difficult for many individuals and families to justify the expense. There are ways to reduce the cost of eating organic food, often to levels comparable to conventional food prices, but it is equally important to understand why organic food may cost more than conventional. Organic agriculture, because it doesn’t rely on synthetic (chemical) inputs to control pests and weeds, is significantly more labour and management intensive. Farmers hand weed, apply mulch, and sometimes hand pick insect pests rather than spraying pesticides. Crop rotations and cover crops are also used to control pests and weeds, which means that farmers aren’t earning revenue on every acre of land at all times. Organic farms are often small farms, so organic producers don’t enjoy economies of scale in the same way as large industrial farms, and sometimes, particularly during the transition to being certified organic, yields are lower. Finally, there are costs associated with organic certification, as well as increased documentation and administration, adding to the price of the end product.
It is also very important to consider the true cost of food production, whether organic or conventional. Food pricing includes the cost of growing and harvesting, transportation, and processing and packaging the products, but the current agri-food system subsidizes producers, the transportation industry, and transnational agri-business corporations through tax incentives and other government programs. Subsidies lower food prices, and the trend towards maximum supply has driven prices down even further. While this might appear positive in the eyes of some consumers, lower prices must have a negative effect on someone. Where are the producers left in this value-chain? The National Farmers Union of Canada is a member-driven agricultural organization that works toward the development of economic and social policies that will maintain the family farm as the primary food producing unit in Canada[1]. Consider the following excerpt from a November 2005 NFU report titled, The Farm Crisis and Corporate Profits.
The report goes on to say that while many farmers struggle with crippling debt and hefty operating expenses, it is transnational agri-businesses, from the oil companies to the seed suppliers to the corporate processors, packers, retailers, and restaurants that profit from the agri-food industry. In fact, many of these companies enjoyed record profits in 2003 and 2004 – the same years that producers experienced record losses. While the current industrial food system may keep food prices low, it has obviously been extremely damaging to farm families and rural communities in Canada. A good deal of soul-searching is in order, not to mention a re-balancing of profits from the corporate ag-giants back to the farmers. Even so, conventional food prices still do not cover the full cost of producing our food. Industrial farming damages the environment, exploits natural resources and contributes to global warming. Pesticide, hormone and antibiotic use, and highly processed and un-nutritious foods negatively affect our health, causing cancer, obesity, diabetes, and many other diseases and chronic illnesses. Farming families have been traumatized by bankruptcy and suicide, and rural communities have become ghost towns. Yet none of these hidden food costs are paid for at the checkout; instead they are externalized and paid for by tax payers.
Organic food and agriculture contributes in countless positive ways to our health, the environment, our economy, and our social systems. If the externalized costs of industrial food production were calculated and added to the price of conventional foods, they would be equal in price or even cost more than organically grown products. While it is true that organic food can be more expensive than conventional for all of the above reasons, the benefits of organic agriculture and food may well justify the cost. For many people it is simply a question of shifting priorities. An extra $20 a week for groceries might mean walking or riding to work instead of driving and parking, or taking a lunch or making dinner instead of eating out most days. Relatively painless changes in how you use your disposable income will allow for more organic purchases. Use your dollars in the following ways to find cheaper sources of high quality organics and show your support for a more responsible food system.
Grow a garden: Surely the cheapest and one of the most satisfying ways to nourish oneself is to grow food, harvest it at its peak, and prepare it as a favourite recipe. Our lightening-paced lifestyles have left many of us out of touch with our food and the pleasures of eating. Helping a garden grow is time well spent. Even if you don’t have the time or space to grow a large garden, a few containers on your deck or balcony, or a small community garden plot can provide the same pleasure. Buy and eat food in season: Food is always cheaper in abundance and eating in season puts us in touch with our local bounty. Manitoba’s Organic Menu is extremely diverse. Many organic farmers have u-pick operations, farm gate sales, or can fill orders for pick up or delivery. Others sell their goods at farmers markets. Buying from producers puts money directly into their hands and eliminates the cost of middle-men. Buying larger quantities of local food in season and preserving or freezing it for the leaner winter months will not only save you money but will also save on packaging. Other ways to buy local food in season are detailed below.
Support local Community Shared Agriculture (CSA) farms: Buy a share at the beginning of the season and you’ll be provided with a box of fresh produce every week during the growing season. Shares finance the farmer’s up-front expenses and help spread out his or her risk. Support food distributors that support local organic producers: If you can’t get out to the farm or the market, shop at stores and distributors that specialize in sourcing local products.
*A copy of OFCM’s Down to Earth Guide to Organics in Manitoba is a great reference for finding local producers and retailers, distributors, and restaurants that source locally grown food. Join or start a food buying club: Get together with a few others and order food from the big organic distributors at wholesale prices. Shop around: Organic retailers often have specials, mark down perishables, and offer points for your purchases. Whenever possible, support our local organic producers!
[1] http://www.nfu.ca/about.html
[2] Farm revenue, expense, and net income numbers are from Statistics Canada; inflation adjustments are based on Statistics Canada’s Consumer Price Indexes; and data on the number of farmers are from Statistics Canada’s Censuses of Agriculture
This page was last updated on: 2007-09-03. |
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