Smart Money: Is organic food worth the higher price? Experts say no – Pamplin Media Group
Posted: February 16, 2017 at 6:44 am
Consumers face big challenges when it comes to shopping organic because of inaccurate and misleading food labeling, confusing nutrient values and sometimes outrageous pricing
If you are a dedicated organic-only food shopper, no matter what the cost, this column is not for you. But if you wonder about getting your money's worth in terms of healthier food at a reasonable price, then read on.
Consumers face big challenges when it comes to shopping organic because of inaccurate and misleading food labeling, confusing nutrient values and sometimes outrageous pricing.
Here's my story.
Standing in front of a brightly lighted dairy food case triggered my comment, recently, to the guy standing next to me. "Isn't $7.29 a gallon is a bit high for a gallon of milk," I asked. "Don't they have cheaper alternatives?"
The guy, who looked to be in his late 30s or early 40s, gave me a thoughtful stare and responded to my question with a crisp, "no." But he wasn't finished. He then told me that he and his wife shop at second-hand stores for clothing so they can afford to spend more of their household budget on organic food for their kids. Organic milk at $7.29 a gallon being a primary purchase.
"We're willing to make the sacrifice because we believe in locally sourced, fresh, pure, hormone-free organic food," he said with passion. His short lecture caught me by surprise. I took a deep breath and quietly said, thank you.
What did I expect? I was shopping in a new co-op grocery store down the street from my son's urban apartment. Almost everything in the store is organic and pricey. Why wouldn't I get a "talk" about the glories of paying more than $7 for a gallon of milk while the Safeway store less than a mile away sells milk for just under $3 a gallon?
Here in the Northwest, the natural-food-GMO-free organic-only movement is embraced as religion, wrapped up in doing good things for the planet and for our children. How can you not believe?
But investigative reporters at the Los Angeles Times and other big newspapers, plus a range of food experts, say the nutritional content from conventionally produced foods and those with the organic label are indistinguishable.
For instance, Mayo Clinic researchers do not consider organic food significantly different than conventionally produced foodstuffs in terms of nutritional value. The clinic looked at 50 years' worth of scientific articles about nutrient content. Journal of Dairy Science recently reported that in terms of nutrients in milk "there is nothing distinct about organic milk that makes it unique from conventionally produced milk."
A study reported by the New York Times a couple of years ago, explained that Stanford University researchers analyzed 237 studies of organic produce, meats and dairy foods and concluded that organic foods are no more nutritious than their conventional counterparts.
Sorry, guy at the dairy case who buys second-hand clothes for his family to afford organic food purchases.
Here's the problem. Huge money is being made by food retailers by perpetuating the public's belief that paying higher prices for organic food is worth it.
Kroger, Albertsons, Trader Joe's, Whole Foods, even Safeway are all growing revenue on the organic wave. More grocery shelf space is going organic for that reason.
A food shopper intent on holding down costs must now be aware (at every turn) of the big price differences between organic and conventional fresh vegetables and between hormone-free and conventional meats and milk.
According to Consumer Reports as sighted by the LA Times, organic foods and beverages run an average 47 percent more in price than conventional alternatives. In some cases, the markup can be more than 300 percent.
You are paying more because organic food is more expensive to produce, safer and is more healthful and nutritious, right? But profit margins on organic food sales are far greater than for conventional food. Supermarkets earn a measly 1- to 2-percent on conventional food sales, while organics will generate averages of 3.5- to 6 percent.
"Organic foods often include a price market up of 29- to 32-percent when only a 5- to 7-percent premium is needed to break even," says the National Academy of Sciences.
Organics are a huge profit opportunity for the cut-throat trillion dollar grocery industry.
Labeling confusion
Then there's the whole labeling thing: 100 percent organic means just that while a singular "organic" label means the product is 95 percent organic. Products that contain just 70 percent organic ingredients can say "made with organic ingredients."
Terms such as natural, all natural, free-range or hormone-free should not be confused with organic foods. Who has time for all this label-reading and primary research?
Grocery vendors are counting on time-strapped shoppers to not take the time to figure this all out and instead grab the higher-priced organic stuff without comparing cost.
For young families on a budget who face rising household expenses, it may be worth it to check out the cost of organics verse conventional food. Is buying milk for a family of four with a $4-a-gallon price difference, worth it? Or as the LA Times headline asked, "Is organic food worth the higher price? Many experts say "no."
Julia Anderson is the Smart Money columnist for the Portland Tribune
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Smart Money: Is organic food worth the higher price? Experts say no - Pamplin Media Group
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