In the May 12 Newsweek, “Natural Response,” looks at the effect higher food prices are having on the sale of organic products. Consumers are finding that the same factors affecting the cost of regular food items are having the same impact on organic foods. Shoppers told Newsweek that with gas approaching $4 a gallon, $7 for a gallon of organic milk and $6 for a pint of organic strawberries just doesn’t look as appetizing.
The Organic Trade Association reports that U.S. organic food sales have grown 17%-21% annually since 1997. That compares to 2%-4% for total U.S. food sales during the same time period. The association reports organics account for 2% of food sales.
Newsweek reports that reluctance on the part of consumers to pay higher prices for organic foods is causing some farmers to rethink which crops to grow and what production methods to use. The rising prices for corn, rice, wheat and soybeans are causing some growers to think conventional production methods aren’t so bad. Organic farmers in the Northeast, reports Newsweek, have decided to grow some crops conventionally to cash in on these commodity items.
The Hartman Group, a market research company, reports the rising interest and sales in organics may be reaching their peak. The company, which will be releasing its The Many Faces of Organic 2008 report this summer, is finding that consumers are more concerned with products that are “fresh” when making food choices.
If consumers are reluctant to pay higher prices for organic food, what impact will this have on the sales of organic flowers? The Hartman Group indicates that “fresh” is the current buzzword that is on the minds of consumers and that the word “organic” is becoming more symbolic in nature.
-- Dave
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