Economy Hurts Organic Sales

New York Times:

Once upon a time, sales of organic and natural products were growing in double digits most years. Enthusiastic grocers and venture capitalists prowled the halls of trade shows looking for the next big thing. Grass-fed beef? Organic baby food? Gluten-free energy bars?

But now, shaky consumer spending is dampening the mood. It turns out that when times are tough, consumers may be less interested in what type of feed a cow ate before it got chopped up for dinner, or whether carrots were grown without chemical fertilizers -- particularly if those products cost twice as much as the conventional stuff.

Read the whole story: New York Times

Comments

[Pdubya]

No, big lobby has hurt the organic industry in hard economic times.

But, local co-ops are thriving. I just joined our local Farm to Family and will be bringing some of my fruits of labor to the basket.

[themodernleader]

For the past decade I have been preparing my family for hard times. Every summer I plant a garden and am becoming more proficient with each passing year. And I save and encourage my boys to save and anticipate the worst.
And my amazing bloggers keep my mind clear of disparaging emotions.

[Hopalongpoppyseed]

Glad to read you are enjoying and benefiting from this activity. You may want to try saving seeds, if you haven't already done so. It's not difficult and most seeds last more than one year. Bush beans and corn are particularly easy to save.

[Treehuggindirtworshiper]

Keep in mind that seeds from hybrid plants will not reproduce the same plant. You need to get heirloom seeds. There are several companies on line. My favorites are Heirloom Acres, Seed Savers Exchange and Baker Creek. Seeds from heirloom plants will produce the same plant.

[jenrose]

Im here is Michigan and as you know our job losses and housing values, forclosure etc.. have plummeted to a record number with thousands more in the next year. This has been apparant here a long time the past 3 to 4 years. Now while I would like to buy organic and enjoy a healthy diet allways before my grown children are healthy and educated with college degrees. The money that I could spend with the same salary in the last few years affords less food, consumer goods everything. The trips I could take to Chicago or another destination have not been in the budget the past 2 years.

A rippling effect because health food stores and major stores all have less money from the consumers. The consumers are paying more residual income to survive and drive to work or pay a utility bill. Every type of business small and large business is effected here now. Good restaruants chains and local long time family owned are feeling the effects You go to a Best Buy here or Circuit City it is empty? Event target has less shoppers? A new dollar store has tons of shoppers?

[olephart]

I am very fortunate in my financial circumstances and my position is as secure as any in these times. For me spending money is not a hobby and though well off I live a frugal lifestyle. That being so, I buy what I want and I will pay the premium for what I perceive is best. I haven’t always been as fortunate financially so I understand the choices many must make. Sometimes these choices are restricted by external circumstances but most often when restricted it stems from having previously made poor choices. Life is a learning experience and some must pay more for this experience than others.

So I have just prepared breakfast for the week. Using organic whole wheat flour, buckwheat flour, oat bran, soy flour together with standard blueberries, buttermilk, egg whites and baking soda I have a dozen large blueberry muffins for about four bucks. Throw in the fig jam I made from the figs off of my tree and I can afford 85 cents a day for a mostly organic breakfast.

[Rule Of Law]

Just wanted to take a moment on this rainy California Sunday to say, as a writer, how much I admire your writing style. You make complex issues understandable and eliminate the MSM flotsam that muddies most folk's thinking. I believe you present the issues fairly--though the fact that you and I seem to see eye to eye 99.9% of the time might be a factor in that assessment.

While not as secure as you are, we should be able to weather the storm, with a little luck. And if our apple, peach and avocado trees continue to produce and the blueberries keep showing up in time for breakfast (or end up in my wife's jam!) our tiny effort at green growing should keep us in good stead. Tonight we will enjoy the end of season tomatoes (Early Girl and Heritage) and basil, so while life could always be better--Maybe Jefferson could return--it isn't half bad now.

Best,

Rule

[olephart]

I often read your postings but do not comment on the subject as you have said it all.

As to clarity from complexity I am reminded of my days long ago as a lowly graduate student being asked to begin an undergraduate class for an associate. I had just completed working up a seminar for a graduate level presentation to the Faculty on “Donor Acceptor Relationships for Cycloaddition Reactions”. The class I was to lecture was a beginning chemistry course. I walked in, introduced myself, turned to the board and began lecturing on Quantum Mechanics and writing complex organic chemical structures on the board. After a few minutes and a board full of chemical structures and mathematical formulae I turned to the shocked freshmen and asked “are there any questions?” One poor soul meekly asked if this was for her class. Feigning confusion I answered “Isn’t this Advanced Physical Organic Chemistry”? No she responded, “It’s beginning General Chemistry”. I quickly erased all from the board and told them “Oh, never mind” and their regular lecturer walked in.

Olephart

[ggfree]

Some time ago during the course of one evening a friend told me she couldn't afford organic food and that she was hoping to buy a BMW. I realized a little something about people that evening. She is the same friend that goes to the doctor at least a couple times a month. The NYT article also seems to focus on meats. Organic rice, beans and greens is pretty economical.

[walsenberg]

Or if you compare the cost of bags of chips, cookies, cereal with lots of sugar, etc. and if you spent that money on, say, organic fruit and veggies, you come out about spending the same amount of money. It's all about how you want to spend your grocery money, for the most part. Unfortunately, sometimes the junky type foods are priced just low enough to make it seem that you are getting more for your money, when healthwise, you are not.

I don't buy all organic, but I try to make informed choices and/or what I feel is important for me. If you go to lower income area stores, they don't even offer organic. This is where you can see the proliferation of liquor stores with some high priced junk type foods. I think there needs to be some sort of way to deal with this, we have after all, put men on the moon.

Maybe we can get some of those community organizers out there working with the neighborhood folks and their local politicians.

[joebaggadonuts]

I think if you compare the amount of actual organic foods being cut back on as a percentage to perhaps anything else, it is probably a smaller percentage being cut back. Figures don't lie, but liars figure.

[mzwednesday]

Organic food is a rip off.....they should be looking at a way to make it cheaper..

[ConcernedAboutRFuture]

Don't know much about organic growing....do ya?

Currently, the government pays farmers (subsidies) for growing chemically processed food.... they pay for all those delicious carcinogens being sprayed on everything we eat and drink. Organic farmers get NO subsidies. They rely on crop rotation, natural pesticides and enviro friendly farming methods... which, without the government subsidies, cost more. Therefore, we have to pay more.

If you consider the payout of organic food, no illness, cleaner environment and support of small business, the extra money paid for organic food evens out.

I'd rather pay more for my apple, support the farmer who cares about our environment and help the microeconomy of the region, than give that money to some doctor working on his 4th house...or maybe 5th.

[anitafieldman]

With or without health insurance, who can afford an illness? Buying organic is the best assurance of getting quality non-genetically modified food. Definitely worth the price.

[bored2tears]

My broker hasn't had shares available to short in Whole Foods for months. Someone else is making money that should be mine!

[NoSillyName]

Buy Better Quality; Eat Less. Simple.

[typicalpol]

Organic produce here in the midwest is at times cheaper than "conventional" produce.

So don't be snowballed by an industry that was upset when organic sales took even 1% of sales away from them.

Often the same companies selling the food products are also the ones selling the conventional fertilizers and pesticides to the farmers,

They will put out anything in the press to help their markets.

Dont forget there is more of a cost than just economic when choosing foods that put more toxins into the environment.

[Semaj51]

I would love to eat more organic/natural foods, but the reality is costs....

[MissElaineous]

Its pretty sad what people are cutting back on. I went in to get a root canal and asked the dentist how he managed to fit me in his schedule the day I called. He said a lot of his patients were cancelling appointments. I just cannot fathom that. We haven't had massive layoffs in my neck of the woods and gas is going down.