In recent years I’ve become increasingly frustrated with the willful blindness of the food movement to the fact that organic food is produced by profit-making entities.
These sound suspiciously like rationalizations to me. I have no doubt that the production costs of organic food are higher than non-organic food, but that’s not an explanation for why the retail price is up to three times higher.
Retail prices are only related to production costs up to a certain point. An iPhone costs about $170 to make. Apple charges you $650 to buy one not because this has some quantitative relationship to the production cost, but because the company has calculated that this is the highest price the greatest number of people are likely to pay. Any less than that, and the company would earn less profit. Any more than that, and the company would sell fewer units.
The price of a product is based on profitability and demand, not cost. As soon as the price is above $170.01, how much it costs to make is irrelevant to how much it costs to buy.
I hate to break it to everyone who takes healthy eating seriously (myself included), but there is no reason to believe organic food is the only sector of our economy that is immune to this reality.
A free range chicken at Whole Foods is $3.99/lb. At Safeway, it’s $0.89/lb. I’m sure it costs more to produce a chicken that’s free-range, no-GMO, gluten-free, dolphin-safe, etc. But you’re not gonna convince me that those two chickens are equally profitable for the retailer.
Or check out peanut butter: $0.24 per ounce for normal (‘natural’, even!), $0.44 per ounce for organic. Again, I’m sure organic peanuts are more expensive to produce than normal (natural!) ones. But seven bucks for a jar of peanut butter is just fucking hella, and the company that makes it is just as profit-seeking as McDonald’s or Nike or Halliburton or any other.
No one defends their Lexus by saying ‘Well, it cost more to make’. We accept that it’s a luxury good whose price is determined by a standard demand curve. A Lexus costs $80,000 because that is how much people are willing to pay. That jar of peanut butter costs $7 for the same reason.
In the context of our current food system, Whole Foods and other organic food producers and retailers are providing luxury goods. A whole chicken costs $12 not because it was raised on foie gras and asparagus tips, or allowed to roam freely and pursue its life’s dreams. It costs $12 because that is highest possible price the company can charge before demand starts to taper off.
Admitting you have a problem is the first step toward solving it. We need to acknowledge that organic companies are just another facet of Big Food, and aim our advocacy efforts toward universal sustainability standards (if pesticides are so harmful, why can they be used at all?).
Otherwise, we haven’t improved the food system. We’ve just added a Lexus to every meal.