02 May Question: PROOFREAD PLZ Introduction Organic foods are turned out in a way that their growing process and t…
PROOFREAD PLZ
Introduction
Organic foods are turned out in a way that their growing process and their distributions have a lower level of harmful environmentally friendly impact as they compared to farming that used chemical fertilizers to promote plant growth. Organic foods may also include products independent of environmental pollution and are thought to health on the body’s internal environment. There are a lot of advantages that have been linked with both the making and eating of organic foods. There has been a large shift in the supply and demand for organic foods over a period of decades (Reganold & Wachter, 2016). This paper will focus on supply and demand for organic foods products, particularly fruits and vegetables.
Commodity Description
The demand for organic commodities goes above supply and is growing quickly, which it is a part of the much higher prices that are paid for organic items and finished goods than the items that use chemical fertilizers to promote growth and processed? As a result, a lot of farm animals and milk producers and the food processors rely on imports for some of their organic raw goods, of which they authenticity a lot is hard, and which has dropped prey to fake in most cases. One of the latest industry reviews from the Organic Trade Association (O.T.A.) shows that organic food sales were a world record of $45.2 billion in 2017, up from 6% in 2016 and its entire food sales growth of 1.1%. However, the pace of growth slowdown from 9% in 2016 due to the fact of slower growth in the egg and dairy organic group, the O.T.A. said. On the other hand, internationally, organic sales top $90 billion. When it comes to the organic food market it has been increased just about 20 percent per year ever since 1990, when the total sales of organic sales were 1 billion and measure up to 17 billion in 2006. (Li, Zepeda & Gould, 2007). A commodity has been produced under certain conditions that are measured to be healthy and environmentally friendly. Customers targeting organic foods are becoming worried with the increasing of the Genetically Modified Organisms (GMO) that resulting in from the increasing use of chemicals (Li, Zepeda & Gould, 2007). These GMOs consist of both plants and animals that make food for human ingestion. According to the study, humans are exposed to health risks such as Cancer from the GMO (Li, Zepeda & Gould, 2007). Farmers have gained from the production of organic foods due to the application of the management systems that have proved to improve or keep the fertility of soils over a long period of time. The result of the benefits that have been realized in the production and consumption of organic foods has led to more production as well as high demand for the commodity. Heath concerns have been the main issue that has driven the demand of the product upwards in the past two decades. In the USA for example, there has been a rise of organic food especially from the families that have children as they are more concerned about the effects of the chemicals used in the production of GMOs (Li, Zepeda& Gould, 2007). According to research, organic food, unlike other food types, has been experiencing fast-paced expansion post-the recession period. In the USA, the sale of organic food has increased since the recession in 2009 from 5.1% to about 11.5% in 2013 (Reganold & Wachter, 2016). As a result of the tremendous growth of the organic food industry, more retailers and farmers have opted to join to get a share. The growth has seen the entry of the Wal-Mart, Costco, as well as Kroger, hence threatening the market position of organic stalwarts like Whole Foods. The prices of organic foods have been the attraction that attracts the rising number of retailers in the industry. Notwithstanding the high prices, there has been an endless rise in the demand for goods by the clients. The number of retailers who have gone into the industry due to the excessive premiums gladly paid by the clients, they are not been matched by the entry of the farmers as the statistics are still measured to be below. One of the causes for the slow down entry of farmers is the era that is needed in changing a conventional farm into an organic one. In addition, the problems of regulations and extra fees have also stopped the entry of farmers. A retailer like Wal-Mart been preparing to offer about 25% discount on organic products (Rödiger & Hamm, 2015). However, challenges have been proven due to the ongoing rise in demand while there is a lack of suppliers. The market has emerged in recent years as a growing organic export. The United States at this time tracking only a tiny set of the organic commodities that are exported. In 2015 there was $551 million value tracked organic commodities (that was mostly vegetables and fresh fruits) and in 2011 it was up 34 percent. Among the top organic exports in 2015 were organic grapes, apples, and lettuces and accounted for just about 12 percent of the overall export price of the three exports. The largest foreign seller of organic products in the United States to Canada and is as well an important seller to Mexico. On the other hand, a lot of destinations for United States organic exports are not showed in our United States trade data because a lot of the organic goods are not being traced. For instance, from the United States EU imports manage to be consumer-oriented goods, such as processed goods, however, the United States don’t trace their organic exports of nearly all their processed goods. Nearly all organic commodities get outstanding price premiums over commonly grown goods due to production costs and the add-on costs that have a lot to do with certification. Organic farmers should find an organic seed that approved, through natural methods to learn how to manage pests and fertility and find their own markets. Due to the high request from the growing organic dairy and poultry sectors, the price for organic grain crops can be a lot higher than conventional grain crops prices. Beyond the farm gate, carrying organic products to grocery shelves incurs extra costs as well. For instance, persons who processors and handle food must separate organic and nonorganic ingredients, whereas retailers supposed to avoid the mixing of unpackaged organic and nonorganic goods. Research shows that a lot of consumers are ready to pay more for their organic foods but guessing on the other hand how much more can be tough due to product and package comparability problems
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