Throughout Europe, Germans spend the least money on food. Although they are interested in ensuring that animals are kept in a species-appropriate manner and that the environment is protected, they still do not want to pay more for organically produced food. In fact, they are not cheap either. According to the magazine Öko-Test, the surcharge is between 40 and 50 percent. In the case of meat, things can get even more expensive, because the surcharge can be up to 100 percent. Now the question arises as to why organic products are so much more expensive than conventionally produced ones. Or rather, why conventional food can be produced so cheaply.
Price erosion weakens small farms
The consumer is happy: for decades now, the increase in food prices has been below that of the general cost of living. Farmers have been left out in the cold: That’s because producer prices have fallen, whereas farm input expenses have remained the same. As a result, the decline in yields has led to enormous pressure to rationalize (for example, mechanization, chemicalization of production). This has cost many a small or medium-sized farm its existence. According to a survey by the German Federal Ministry of Food, Agriculture and Forestry, more than one million farms have had to close their doors in the last 50 years in Germany alone. Under these circumstances, only large farms could continue to exist.
Compulsion to produce cheaply
The food industry is also under great pressure. This is because it is forced to buy agricultural raw materials as cheaply as possible – across Europe and around the world, because it is possible to produce more cheaply in southern and eastern Europe and in developing countries due to low wages. In the food trade, there is a strong concentration of suppliers, which has led to ruinous competition and further depressed prices. This compulsion for cheap production, processing and marketing has also prepared the ground for the food scandals we have been hearing about for years. Hormones and antibiotics in veal, swine fever, BSE, salmonella in poultry meat, glycol in wine are just a few examples among many.
Ecological consequences cause costs
It should also be borne in mind that the ecological and social follow-up costs of cheap production (for example, through drinking water treatment to remove plant treatment agents and nitrates and the high consumption of energy and raw materials) are partly borne by taxpayers. In the end, the food we buy so cheaply is more expensive than we thought. We just don’t pay for them directly at the supermarket checkout.
Organic pays off in the long run
Organic farming produces food in harmony with people, animals and the environment. It therefore requires significantly less fertilizer and energy than conventional farming. However, because organic farmers do not embrace rationalization, they must put in more work in crop production and animal husbandry. In doing so, they naturally earn lower incomes. Therefore, organic products naturally cannot be as cheap as conventionally produced food. On the other hand, if new sales outlets (such as organic supermarkets) were established even more strongly in addition to the classic marketing channels (for example, natural food stores, health food stores), and if the supply in the conventional food trade were increased, more people would buy organic products. Increased sales volumes would naturally drive prices down.
Asking the consumer
Consumer surveys show that higher prices are indeed a barrier to purchase. Other reasons include the lack of availability and awareness of the products. This means they are not offered or recognized where customers like to shop. Some customers are also confused by too many brands or labels and do not trust themselves to recognize “real” organic products. It should also not be underestimated that many Germans consider cheap food to be a sign of progress and a high standard of living. And they enjoy a certain “bargain mentality”: what is saved on food can be spent again elsewhere (on vacation, for example). However, using more food from organic farming does not seem to be a question of income, but stems from an appreciation of one’s own health, the environment and the social aspects of the food system.
“Organic households” don’t spend more money
It is interesting that “organic households” then in total do not spend as much money on food as households that buy conventionally produced food. This is mainly due to the fact that less meat and sweets are consumed by “organic buyers” overall, and the proportion of alcoholic beverages and stimulants is lower.
