Why is organic fresh food more expensive than conventional food? Arend Zeelenberg, owner of marketing consultancy 'Buro AZ' in Dronten, Holland, associated with Frugi Venta Organic Trade, tells us why. “Basically it’s expensive because it is more costly to produce and because returns are generally lower. Simply put: you spend more for less produce. So you have to look at the expenses per kilo.”
Zeelenberg does state that biotech crops have seen a lot of progress in recent years. An exchange of knowledge between growers has pushed produce capacity. “Many growers take part in meetings and study groups. Most of them are eager to learn, and are always looking for ways to improve cultivation.”
Another thing that pushes the retail price is the fact that biotech doesn’t use fertilizers and chemicals. “Growers must seek alternative ways to battle possible infection; and they can’t stimulate growth artificially. Also, Dutch regulations concerning biotech are very strict. As a grower, you have to adhere to all kinds of rules.”
One of those rules concerns the use of organic fertilizers. “The percentage of required compost of biological origin is driven up each year. As the amount of organic fertilizer is limited, the prices are high.”
According to Zeelenberg retail prices of conventional and organic produce are hard to compare. “Often it completely depends on the product. The carrot, the parsnip, these are relatively cheap. Also, seasons play an important part.” Zeelenberg advocates a more seasonal approach when it comes to retailing: “If retailers anticipate a little more, take seasons into account when they stock their shelves, price levels can improve enormously.”
For more information: Arend@buro-az.nl
Source: http://goo.gl/X0VSq
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