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Trends Point to Major Drop in Organic Food Prices
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by JD Rucker | September 3, 2008 at 11:14 pm
317 views | 7 Recommendations | 2 comments
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There is compelling evidence that we are about to see a drop in organic food prices. This goes against what we see currently as food prices across the board are skyrocketing. Despite first impressions, that is precisely one of the reasons that organic costs will drop.
Supply and demand is one of the factors pointing towards dropping organic prices, but it is only a short-lived catalyst. As the demand dwindles, so too will production. It is the other factors that will sustain the decrease.
It goes beyond supply and demand.
One such factor is the effect that oil prices are having on fertilizer costs. A study on the effects of oil on farming that was featured in Telegraph suggests that this idea may soon become reality. Peter Melchett, policy director of the Soil Association, said, “This study suggests that as oil inevitably becomes scarcer and costs more, economic forces will increasingly favor organic farming.”
Finally, there is one other factor that is perhaps the most important in lending to the idea that we are going to see a decrease in organic food prices.
While these two factors affect the source of organic food, it is the retailers themselves who may trigger the fastest and longest-lasting drop in organic food prices. In response to the decline of sales, a looming price war may push organic food prices down to a level comparable to regular foods.
If prices do go down, this will definitely push many people to head in that direction.
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JD Rucker
Ladera Ranch, California, United States
Most RecentMost Recommended Comments (2)
at 04:27 on September 4th, 2008
JD Rucker, I like this story. The other point is that people may beginning to wonder whether paying over the odds for food that 'looks nice' but for which there is no evidence it is any better for you than other fresh food! It's easy to indulge in myths when money is plentiful: just look at expensive face creams for which there is again no evfidence of efrfectiveness. In the UK more organic food is produced than there is allegedly acres on which to produce it, so someone is kidding the public somewhere!
at 09:21 on September 4th, 2008
JD Rucker, I like this story. It's good stuff. I think that as "organic" food becomes more popular it will have to be monitored more closely. For instance, the other day I saw garlic labelled organic in the supermarket --- source country China. In light of the massive pollution problems in that country, who is monitoring the standards. Real organic farming does incur extra costs in ensuring crop rotation, crop losses due to insect infestation, hand weeding as opposed to herbicide application. To qualify for organic status, one must also ensure that seeds used are not GMOs which might give greater crop yield. To maintain food safety and food supply the people in N. America will have to change their attitude towards what they feed themselves. If food is important then pay for it.