Food, organic prices

THE NK CAFE, 4100 W. Kennedy Blvd., Tampa, tr 813-287-1385. Price . Natural foods, organic produce. Hours Lunch, Monday through Friday, 1 lam-2 30pm Dinner, Tuesday through Friday, 6pm-9pm. 

In Japan Chlorella spp has been produced for food in continuous aseptic systems in conventional bioreactors. The organisms are grown in the dark as heterotrophs using sucrose (in the form of molasses) or glucose as carbon and energy source. Production has been 2,000-3,000 tonnes per year at a selling price of (US)10-22 kg 1 (1990 prices). This product is sold as a high-value health food. 

Schmid and Richter (2000) showed that the premium prices for organic food were highest for fruit and vegetables (60% to 70%) and lowest for cheese (20%) and cereal products (31%). The premium prices for organic meat were 52% above conventional and for milk were 42%. The reason given by sales staff for the big price differential for fruit and vegetables was that these products cannot be stored for very long. The authors state that to promote sustained consumer... 

Sales through supermarkets require large and continuing supplies, which in turn tend to reduce average price premiums for organic food. 

Benoit, writing in 2002, felt that organic sheep have a profitable future in France. He calculated that with a 20% to 30% higher price for organic lamb and by extensifying the area of forage crops so that the farm is self-sufficient for food, then farm income can be maintained or even increased. 

Desk research consists mainly of reading as much as possible about other people s experiences and recommendations. Read industry publications to find out what is currently in demand and what looks promising for the future, as well as what price ranges are available for various products. If there are one or two people who have published material of particular relevance, then if possible go and speak to them in person. They may say more in person than they will write, or their work may prove to have been derivative, in which case find the original source. Market research reports and trade publications can be obtained from most local libraries. Most broadsheet national and local newspapers report occasionally on the organic food industry, and sometimes it is possible to identify a gap in the market. 

The Organic Valley dairy co-op, based in Wisconsin (USA), has 633 farmers in 16 states and one Canadian province. They have 20475 cows and 95000 acres. They claim that their success stems from paying farmers a fair, sustainable and stable price. They sell via natural food stores and supermarkets. They have also been active in getting schools to offer organic milk (The New Farm, 2003). 

In summary, it is clear that a substantial part of the increase in consumption of organic products has been demand led, the consequence of a positive shift in consumer attitudes to organically produced food. But part has also been supply driven, with consumer reaction to more competitive prices and increasing availability the main vehicle for increasing consumption. It is to these two features of organic consumer behaviour that we now turn. 

Whereas many of the positive characteristics associated with the decision to buy organic foods are credence characteristics, many of those given for not purchasing are more directly experience characteristics (Zanoli, 2004 Torjusen et al., 2004). For example, price, poor availability, limited product range, too many different labels, poor taste. The implications of this are discussed in more detail below. 

La Via G and Nucifora AMD (2002) The determinants of the price mark-up for organic fruit and vegetables in the European Union , British Food Journal, 104 (3/4/5), 319-336. 

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