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Hunger for Organic Foods Stretches Supply Chain
Keywords:
The situation for organic farmers in the U.S. and Canada where conversion is discouraged by the high costs incurred over 2-3 years for converting to regular farming. A period in which use of pesticides and other chemical products is reduced and new farming practices are introduced. During this period farmers still sell product at the regular price, even as high upfront costs are incurred. The result is tight organic supplies for corn, soyabeans and other food products, with organic prices as much as three times the regular price. In responding to the surging demand buyers are getting involved to support farmers by guaranteeing prices over several years, and in some cases buying farms. This trend should result in lower prices for organic foods as supplies catchup with demand.
Inadequate supplies of organic food in 2015 with surging demand and greater involvement of buyers in supporting farming to increase supplies
04/04/2015
Organic food such as corn and soyabeans can fetch prices as high as 3 times the regular price. During the transition period of 2-3 years for converting to organic farming growers still get paid the regular price even as they incur the high upfront costs of conversion. Organic farming also includes higher costs for farming practices such as weeding. This discourages conversion and requires support form buyers or direct involvement of buyers in setting up organic farms.
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Hunger for Organic Foods Stretches Supply Chain
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Hunger for Organic Foods Stretches Supply Chain
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Balance of Power Shifts in Groceries
Wall Street Journal 03/27/2015
Hunger for Organic Foods Stretches Supply Chain
Wall Street Journal 04/04/2015
Got Milk? Spinoff Shows Lure of Organic
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