Agriculture Reference
In-Depth Information
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grow a more constant supply of lettuce and to expand into some crops that
he would not otherwise grow. This seems to please his CSA members.
In Colorado, the Bensons proudly display their certificate, as Cliff reads
it: “100 percent pure organic millet.” Allen explains, “I do have a purity
test done every time for every container. Kansas Grain out of Paxton does
that for me.” Cliff explains, “Purity means no weeds or any other foreign
material.” Speaking of organic markets in general, Joel explains, “There are
hundreds of people out there for buyers and brokers. But I'll have to say it
is a quality market. It has always been a quality market. So nothing in that
respect has changed.” Just as crop prices that organic farmers earn vary, so
do food prices that consumers pay for organic foods.
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Organic Food Prices
Growing food organically costs more, since there is no simple short-term
chemical “fix” to rely on. Thus the price premiums earned by farmers are
passed along to consumers. Phil, in California, describes the situation with
onions and garlic: “They are much more difficult to grow organically than
conventionally. The prices are definitely higher than conventional, and I
think they should be for a couple different reasons. If you look at the cost
and all the things of somebody that is really doing a good job organically
- building the soil. There is a lot more cost going into farming organically.
There is certainly more labor involved with weeding. And I think it is nice
to know that there is something out there holding a higher price. I hope
that organic continues to do that.”
In terms of his California produce, Phil describes the organic price
markups: “When I used to figure in my mind wholesale, if we were getting
X for it, it was selling for twice that to two and a half times that in the store.
But there are brokers, there is trucking, it is a lot more. I don't know what
the rule of thumb is from when we deliver to the stores. I think they mark
up at least 50 percent. But we are getting the sales, and we are getting the
trucking as we are delivering directly to the stores. They may try to mark it
up double sometimes, but I think it generally is a 50 percent markup. If we
are getting a dollar a bunch for broccoli, then it is probably selling for $1.40
to $1.60.”
So the markup on organic food can be substantial, particularly as whole-
salers and distributors realize that consumers are willing to pay more. Steve,
in NewYork, explains that it does cost more for organic food transportation
because it is at a smaller scale. “You have to truck it, and maybe one or two
other people mark it up. You take it to a wholesaler, and they mark it up
and deliver it to a store, and they want to make some money on it. And
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