New Problem on Horizon: Organic demand outstripping supply
Interesting article from Maryland discussing the ins and outs of organic farming conversion.
While farmers may balk at the three-year conversion process (to certify fully organic), the premium paid by organic buyers outstrips the conversion costs. And the premium promises to keep accruing as organic demand continues to skyrocket. That's simple market economics.
Still, one point needs underlining. The article implies that during the conversion, farmers lose money from reduced yields. Then, once they gain certification, they more than make it back.
What I've noticed over the years shopping full-time organic, however, is that "transition" produce yields the same premium as fully organic. It's marked transition, yes. And that means that while it has not qualified for certification, it also is not tainted by pesticides, hormones and other pollutants.
So I guess I'm curious exactly how farmers suffer during the transition period. It's something I'll follow up with my sources at farmers' markets.
The good news remains that demand is increasing — by 75 percent at the end of the decade, according to the article. Overall organic consumption is still tiny, tiny, tiny. But the growth rate is the key integer to watch, and it's dynamite.
Another key quote from the article: "A recent study by the Hartman Group, a market research firm that tracks healthy food sales and trends, found that traditional motives to buy organic—concern for the environment—have been eclipsed by concerns about health and food safety." Green For Good's partner, HealthEGoods.com, has got to be encouraged by that kind of finding.
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