Saturday, June 27, 2009

Organics in a Downturn Economy


We all know that a lot of households in the world are struggling to make ends meet. This should come as no surprise to learn that many of us are cutting costs in the grocer's aisle. What you may find surprising is how quickly the odds are stacking up against many organic farmers. The past two decades have seen enormous growth in the switch from conventional farming to organic farming. Partly brought on by farmers who were disturbed by the vast amount of chemicals their crops and animals were requiring to compete in the conventional farming market, and also encouraged by the higher prices organics were bringing on the market, many farms began the process of attaining organic certification. It's a slow and difficult change for many farms, complicated for large farms to implement, and costly for small farms that may not have the capital to make the change swiftly. Just as a lot of the organic farms were beginning to turn good profits the bottom is falling out in the economy. Organics still bring a premium price in some products, but a quick glance at your local grocery tells the story of how conventional products are not necessarily cheaper than the organic version. This is especially true in canned goods and fresh fruits and vegetables. The fact that these prices are falling is excellent for the consumer but it is having an impact on the growers bottom line. Organic certification costs the grower quite a bit of cold hard cash to become certified- and this certification must be maintained each and every year to receive the distinction. Many growers simply cannot pay for their certification this year. This is in part due to lower prices being paid for their goods, but it is also a factor of the consumer not being able to afford the organic products they once bought with regularity. Organic milk producers are falling out of production like flies, either reverting back to conventional milking practices or closing up shop all together. Prices for organic meats are still holding strong as are grains used in baking, but demand in these sectors is falling due to the cash crunch we are experiencing in our households. This may be the first year we see an overall decline in the sales of organic products, and this is troubling in an industry that has had such healthy growth the past two decades. All is not doom and gloom for organic growers, however. Small farms are seeing some surprising trends. Even though purse strings are tight, there are still vast numbers of people just finding out the benefits of eating organic vegetables, fruits, and meats. This growth is taking up some of the other economic slack, and for small ventures with less overhead this is making a huge difference to their bottom line. The question on every one's lips, however, is how long can this growth continue as the economic stress seems to be bearing down indefinitely on the average household. Die hard organic consumers will continue to buy and make cuts everywhere else they can manage, but the periphery organic consumer may be the one holding the future of organic growing in the palm of their hand. They are the real wild card in this issue. So what can the average person do? Now more than ever, the way we spend our money is one of the ways we vote. If your local grocer sells more conventional apples than organic, you may find your organic apples gone entirely or greatly reduced in quantity. The same is true for brands of organics. Stores have such specialized retail systems that track sales of brand skus that it is much easier to discern slow sellers and cut them from inventory lines. The bottom line is that each and every one of us has a food budget of sorts. How we shop in the coming months is going to greatly affect what the stores have to offer this time next year. While we may not be able to add thirty percent to our food budget to buy organics, we can look at some ways to make our money go further. Growing organic vegetables at home may mean you all of a sudden have the extra money to buy organic flour. Brewing a large pot of organic coffee and putting a pitcher of it in the fridge may mean you have ice coffee for two or three days during the dog days of summer and you are using a third of the coffee you once did. All of a sudden the organic brew doesn't seem so expensive when it is lasting three times as long. Really monitor what you throw away. If you find fresh vegetables and fruits in the compost heap you may be better off buying organic frozen varieties and using them as needed. Nothing beats fresh, but if it's ending up in the garbage we're not doing ourselves any favors. There was a time that we may have spent $5 on a cup of coffee once or twice a day. Imagine taking just twenty dollars and breezing through your local farmers market once a week. A twenty at the farmers stand can go a long way, both for you and the farmer. If your family eats meat every day, think about cutting this to three times a week and opting for free range chicken and grass fed beef. You may be surprised how different the taste and texture of organic meats really are making those meals very special. We'll be revisiting this topic again over the next months as there is so much ground to cover regarding food and organic farming. Please be sure and give us your questions and thoughts on this topic and we'll incorporate them into our essays. Times are tough but together we can ensure that our farmers weather this economic storm and continue to provide us with good choices at the grocery.


  1. Not only do our markets hold control over what's sold in their stores, but our government, too. WE NEED TO SPEAK UP ABOUT THE CONTROLS THEY INSTITUTE - many not in the consumer's interest, but the government's own! Oh, for the days when government kept its collective nose out of my life and REALLY did what it was supposed to. BTW -- I'd rather have my food grown and processed HERE, not in some OTHER COUNTRY!

  2. The difficult catch 22 the organic farmers find themselves in is one of having to pay the fees associated with organic certification. It costs money to verify that farmers keep to the regulations of organics- and the cross checking comes at a price because of the manpower it takes to regulate it. If we didn't have the regulations in this instance, you would never know if your organic label was legit- or your crops were dusted with DDT. Buy as close to local as you can because it keeps the carbon footprint as low as possible.