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Discover why organic food is more expensive by exploring production costs, lower yields, certifications and market impact
A farming Organic has been marketed as a healthier, more sustainable and ethical option. However, for consumers, the main barrier is still price. Organic products almost always cost more than conventional products, and the difference can be significant.
According to a report from the US Department of Agriculture (USDA), the price difference varies greatly.
Onions and carrots, organic products among the most consumed, cost around 15% more than conventional ones, while eggs can cost up to 82% more and skimmed milk can double in price.
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Organic products: What makes them more expensive and the real reason for high prices
Organic farming involves more labor-intensive and expensive processes. One of the main factors that makes production more expensive is labor.
- Manual control of organic weeds: While a conventional farmer can apply herbicides to eliminate organic weeds, an organic farmer must remove them manually or use mechanical methods, which require more time and labor.
- Limited use of machines: Organic farms tend to be smaller and more dispersed, which makes mechanization difficult. In contrast, conventional farms make extensive use of large agricultural equipment, which reduces operating costs.
- Natural pesticides deactivated more applications: Synthetic pesticides used in conventional farming are more effective and require fewer applications. Pesticides permitted in organic farming, such as copper sulfate and pyrethrum, require more frequent application, which increases labor costs.
- Risk of crop loss: Even with the use of permitted pesticides, organic crops are more vulnerable to pests and diseases. When a crop is lost, the producer must compensate for this loss by raising the price of successful crops.
- complicated logistics: Conventional farms are part of large supply chains, allowing for efficient transportation. Organic farms, on the other hand, are smaller and distributed, which makes distribution more expensive. Furthermore, organic products cannot be transported together with conventional products, making the operation even more expensive.
Lower productivity
In addition to higher production costs, organic farms often produce less than conventional farms.
- Lower income: A meta-analysis of 362 studies in 43 countries found that productivity on organic farms is, on average, 20% lower than that on non-organic farms. In some cases, this difference can be as high as 34%.
- Greater need for land: To produce the same amount of food as a conventional farm, an organic farm would need more land. This directly impacts the orientation of large-scale organic farming.
- Lower production stability: A study of 193 comparative surveys showed that yields on organic farms vary more from year to year, while conventional farms have more stable production.
These factors mean that to compensate for lower production and higher costs, organic producers need to sell their products at higher prices.
Certifications and regulations drive up costs
For a product to be labeled as organic, it must follow a series of rules and undergo regular inspections.
- Strict licensing: In many countries, farmers must obtain certifications to sell their products as organic. These certifications ensure that agricultural practices follow environmental and safety standards, but they come at a high cost.
- Frequent inspections: Organic farms undergo audits to ensure they follow applicable standards. These audits represent an additional cost for producers.
- Extra certifications: in addition to organic certification, many farms choose to obtain additional certifications, such as non-transgenic (non-GMO) products, or certifications that make the process even more expensive.
All of these costs are passed on to the consumer, making organic foods even more expensive.
The power of supply and demand
Even if organic production were cheaper, prices would still be high due to the relationship between supply and demand.
- High demand, low supply: The number of organic farms has been growing, but it is still not enough to meet the growing demand for organic food. With a limited supply, prices naturally rise.
- Marketing and value perception: Organic foods are marketed as a healthier and more sustainable option. Many advertising campaigns emphasize the health and environmental benefits, encouraging consumers to pay more for these products.
- status symbol: In some regions, consuming organic food is seen as a sign of sophistication and environmental awareness. This perception leads consumers to pay higher prices without question.
Store profits also make organic products more expensive
Supermarkets and specialty stores also play a key role in pricing organic products.
- Higher profit margins: As consumers spend more money on organic foods and generally have greater purchasing power, many stores take advantage of this willingness and apply high profit margins.
- Unjustified premium price : While the cost of producing organic foods is indeed higher, the price difference is not always proportional. In some cases, retailers simply raise prices because they know consumers will pay more.
Organic food prices are influenced by several factors: higher production costs, lower productivity, expensive certifications, and supply and demand logic. In addition, the perception that organic products are superior allows retailers to charge even higher prices.
With information Scienceabc.
