Framework for Re-thinking Ethics in the Organic Movement - Re-Thinking Organic Food and Farming in a Changing World - page 263

and farmers put the issues of fairness under pressure. In response to this type of
economic pressure, small farmers diversify their markets (Lyons 2007 ), and follow
a marketing path similar to the Nature/Philo type.
We conclude that these regionally oriented entrepreneurs integrate organic values
in a more idealistic and holistic manner than big retailers. They reactivate a
regionally oriented food network that is more independent from the global market.
However, they are limited in significantly fulfilling these values because business
constraints force them to adopt the conventional business model. On the other
hand, given their values, small-scale businesses are negatively affected by these
organic 'superstore' chains and are unable to compete with their logistics, buying
requirements and price structures (Lyons 2007 ).

13.1.4.3 Econo/Market

Since the 1990s, many large conventional processing and marketing firms have
jumped on the “organic bandwagon” and have introduced their own organic
products. Most large retailers now offer an organic line of products and organic
is now an important section in most retail grocery stores (Willer and Kilcher
2012 ). Retailers have become aware of the organic business opportunities and
respond to Econo/Market consumer who seeks low cost organic food (Lyons 2007 ).
Relatively lower organic prices in discount chains allow lower-income consumers
to purchase organic food. This encourages some organic farmers to enter uniform
mass production (see Enviro/Protest). In many cases, these farmers also bear all the
risk of meeting the buyer specifications, just as in marketing conventional produce
(Higgins and Lockie 2001 ).
These companies clearly influence the distribution of power among different
actors in the organic food chain by product, between countries and the types
of contracts between retailers, processors and farmers. In many countries, local
organic outlets have been acquired, thereby negatively affecting the diversity of
small marketing and processing units. The role of retailers in the organic market
is controversial (see e.g., Grosglik, Chap. 8 ) . Large, corporate retailers commonly
pressure organic farmer for lower prices in order to offer less expensive organic
product to consumers. At the same time, the increasing interest of conventional
retailers has helped encourage both large and small farmers in some countries to
convert to organic production. Richter et al. ( 2000 ) argue that the expansion of
multiple organic retailers might promote organic market development, by establish-
ing an increasingly secure market and financial incentive for farmers considering
conversion to organics.
The large quantity of food processed and sold organically in most supermarket
and discount chains reflects the institutionalization of the global agrofood system
(Raynolds 2004 ) (see Constance et al., Chap. 9 ) . This segment continues to grow
specifically in California, but also in Europe, Australia and New Zealand. The
majority of these retailers rarely pay attention to broader issues of organic principles
e.g., food miles, labor conditions or fair prices (cf. Latacz-Lohmann and Foster