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[–] HenryCorp [S] 7 points 23 points (+30|-7) ago 

That's because most farmers are not currently organic, so there's less supply of the organic food for a greater demand. If every farmer went organic, that would change quickly.


[–] casper 1 points 19 points (+20|-1) ago 

Actually no, its because organic brands can command a higher margin due to effective marketing. More people are simply willing to pay more, so grocers charge more.


[–] hotgirl 0 points 0 points (+0|-0) ago  (edited ago)

Why can't you both be right? HenryCorp is discussing the supply side, and you are discussing the demand side. Both your statements could be true. If the supply increased we would expect prices to fall, and if demand decreased we would expect prices to fall, ceteris paribus.

Edit: You both get my upvote.


[–] Broc_Lia 0 points 8 points (+8|-0) ago 

I'm not even remotely convinced by this. If there were double or triple profit margins for organic food at a reduced operating cost every farmer in the world would be scrambling to have their produce certified. Heck, even without the certification they'd be switching as fast as possible just to run more efficiently.

Farming is a cut-throat business, the fact that farmers mostly aren't switching over suggests that it's a well supplied and saturated niche market with higher operating costs.


[–] WhiteTigerScream 0 points 0 points (+0|-0) ago 

The only thing I could think of while reading this is 'why cant any of our presidential candidates reason this well?'.