Why Is Organic Food So Expensive?

The increase in the price of organic-certified products is due to a number of causes. So lets try to recognize some of them.

Organic Certifications

For registration, accreditation, and certification, organic farmers must pay a hefty price. For many producers and handlers, these certifications are costly and time-consuming. Not only are the expenses of first-time certification high, but there are also other certification-related expenditures to consider. Renewal of certificates, grower education, suitable organic land, organic livestock, organic seeds, and special processing equipment are some of the primary certification expenditures. Aside from that, any chemical analysis is billed on a case-by-case basis. This cost is increased if a farmer cultivates two distinct crops on his organic farm. The majority of farmers find it difficult to maintain the cost, and the final price tends to be higher.

Increased Shipping Cost

Because it is necessary to segregate conventional and organic produce, especially for processing and transportation, handling relatively modest quantities of organic food results in higher expenses once the crop is harvested. Organic crops have a higher risk of rotting in the absence of chemical treatments, therefore storage costs go up as well. By the time it reaches the market, the whole procedure has increased the cost.

Training

Business owners invest a significant amount of time and money to learn the fundamentals of organic farming. Being up to date on organic food policies is crucial, but it may also be expensive. Aside from self-education, organic company owners and enterprises must guarantee that their workers adhere to correct protocol.

Demand-Supply Gap

In consumer terminology, economies of scale indicate that the more you buy, the more a company produces, and the more you produce, the cheaper the prices get. In this market, supply and demand is a significant issue. Despite the fact that organic food is becoming more popular every year, it still has a long way to go in terms of sales. There would be more demand for organic produce if more people bought it, allowing organic companies to expand. As a result, costs would be reduced.

Inefficient Marketing and Distribution

Organic products' marketing and distribution chains are inefficient, and expenses are greater due to small volumes and low customer awareness. People who can afford better alternatives are nevertheless drawn to traditional foods, despite the fact that they are likely to harm them in the long run. And, because the market isn't well developed, distribution routes are inefficient, maintaining power in a few hands and allowing them to charge premiums, resulting in higher consumer costs.

Special Facilities

Most organic certified companies, from growers to processors, require particular land and/or infrastructure before they can produce organic food. Organic farmland is substantially more expensive than conventional farmland since it must meet a comprehensive list of requirements. If an organic firm shares premises with a conventional company, extra effort must be spent ensuring that goods are not intermingled, or that processing machines are adequately cleaned before being used for organic food processing.