Is It Really More Expensive To Buy Organic?
According to a recent study, organic food was 21% more expensive than its non-organic counterpart. But when meat was removed from the equation, it averaged only 10% more expensive.
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In theory, buying organic fruits and vegetables should cost less than conventional food since they forgo the cost of chemicals, synthetic pesticides, and antibiotics. But these naturally-grown products typically cost more, branding them as luxury items. However, recent demand has made organic groceries cheaper and easier to find thereby bridging the price gap with its nonorganic counterpart.
For those interested in buying organic, CNET did a price comparison with conventional products via online grocery stores, Fresh Direct and Amazon Fresh. The price difference was significant for some foods. But for others, the added cost was rather reasonable or nonexistent. At the end of the survey, the publication found that organic groceries were approximately 21% more expensive than non-organic. But if shoppers exclude meat from their grocery list, buying organic is only about 10% pricier.
In an economy that’s struggling with soaring inflation, that’s a price jump Americans can’t afford even though most would prefer buying organic. That group has probably wondered what’s behind the added cost. The biggest reason is that no chemicals, means more labor. Using chemicals and synthetic pesticides reduces the cost of production by doing the job faster and more efficiently. Organic farmers have to hire more workers for tasks like weeding and the remediation of pesticide contamination.
Demand overwhelming supply is another reason why buying organic is more pricey. According to Fox News, retail sales of organic products rose from $3.6 billion in 1997 to $21.1 billion in 2008, with 58% of Americans claiming they prefer to eat organic in 2016. But since organic farmland only accounts for 0.9% of the world’s farmland, and they tend to produce less than conventional farms, the price of organic items goes up.
The higher cost of fertilizer for organic crops is another factor that adds to the cost of buying organic. Organic farmers skip inexpensive solutions like chemical fertilizer to keep their crops natural. Instead, they use compost and animal manure, which is more expensive to ship. They also conduct sophisticated crop rotations to keep their soil healthy and prevent weed growth. And after harvesting, they use that area to grow “cover crops” which add nitrogen to the soil, benefiting succeeding crops.
To avoid cross-contamination, organic produce is separated from conventional products after being harvested. Conventional items are shipped in larger quantities since their farms can produce more. Organic crops, however, are handled and shipped in smaller quantities since organic farms produce less. This results in higher costs when buying organic. Additionally, organic farms are located further from cities, which increases shipping costs.
Moreover, acquiring USDA organic certification is no easy task. In addition to the usual farming operations, facilities and production methods need to comply with certain standards. This may require the modification of facilities which means more employees are needed to maintain strict daily record-keeping that must be available for inspection at any time. Organic farms also pay an annual certification fee, depending on the agency and the size of the operation, all of which adds to the cost of buying organic.
