Consumer Demand for Organic Food

Price (whether the market likes to admit it or not) really is controlled by consumer demand for products and services. When demand falls, price also falls. When demand increases, price also increases. It’s a simple formula that isn’t very easily manipulated (although the oil companies are doing a pretty good job of manipulating it at the present, but that’s another article). We’re talking about organic food and the demand for it.

Today all health food stores and most herbal medicine stores carry some organic food items. Big chain grocery stores are also beginning to carry a line of organic products as well. The reason that more retailers are carrying organic products is because more consumers are demanding organic products. And, of course, the price is growing up. Price is going up because demand has increased and supply has not. There is less product desired by more people. Big demand + small supply = high prices.

I also like to think that people are just getting smarter when it comes to food choices. We’ve become a weight-conscious nation. You can hardly find a person who doesn’t know what calories, carbohydrates, and proteins are. Even little kids know the difference between saturated fat and unsaturated fat. Now the population is becoming more and more aware of how the food on grocery store shelves is produced. The problems with contaminated products from China raised awareness, I think, and that’s a good thing. (Not the contaminated products, but the awareness of the contaminated products.)

There is a rule, however, that says that what goes up must also come down. As more and more people demand organically produced food, more and more producers of food will choose to grow their products using organic methods. As more supply becomes available, the prices will go

down. It’s going to take a while, though.

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