USA

“Organic” is cheaper

Last year, according to Nielsen, organic food and drinks cost an average of 24 cents, or 7.5% more per unit than all others.

In 2014 both of these figures are slightly decreased then they were, respectively, 27 cents, or 9%. However, for some products consumers have to pay is much more substantial: for example, organic milk is 88% more expensive than usual, of eggs by 86%, and bread — and at 2 times. But at the same time, children’s meals costing only 3% more Calais by 5%, while artichokes, soy milk and apples become even cheaper.

The cost depends on many factors. For example, milk and eggs over the road, as the government has set specific requirements in relation to their “organicity”. In particular, dairy cows need to directly grazing under natural conditions at least one third of your diet. At the same time vegetables and fruits are grown in the same conditions as the others, so the price is comparable.

In addition, the expansion of the range leads to cheaper products. If you have previously organic food and drinks can be bought at Whole Foods and other major networks, now they are increasingly trading and conventional stores. The result Kroger, Costco, Walmart and other leaders of retail sales of food are forced to lower prices, while on the other hand, they grow on those types of products, which offer not yet meet the demand. And the popularity of organic food, drinks and personal hygiene items increases — last year alone their sales increased by 9%, and the expense of not only the “Millennials”, but also representatives of other generations. In General, these products acquire 88% of households.

As suggested by Ryan Khoury, a senior economist at research firm Mercaris, studying the situation in agriculture, specializing in environmentally friendly products, it will always cost more. But the less the government will monitor this area and the more help, the more likely the price reduction.

Source:news.rusrek.com
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