Why is organic food more expensive than conventional food?

Certified organic food. Certified organic products are generally more expensive than their conventional counterparts (for which prices have been declining) for a number of reasons:

As demand for organic food and products is increasing, technological innovations and economies of scale should reduce costs of production, processing, distribution and marketing for organic produce.

Prices of organic foods include not only the cost of the food production itself, but also a range of other factors that are not captured in the price of conventional food, such as:

Non-certified organic food. In many developing countries, there are agricultural systems that fully meet the requirements of organic agriculture but which are not certified. Non-certified organic agriculture refers to organic agricultural practices by intent and not by default; this excludes non-sustainable systems which do not use synthetic inputs but which degrade soils due to lack of soil building practices. It is difficult to quantify the extent of these agricultural systems as they exist outside the certification and formal market systems. The produce of these systems is usually consumed by households or sold locally (e.g. urban and village markets) at the same price as their conventional counterparts. Although the uncertified produce does not benefit from price premiums, some cases have been documented where non-certified organic agriculture increases productivity of the total farm agro-ecosystem, and saves on purchasing external inputs. In developed countries, non-certified organic food is often sold directly to consumers through local community support programmes such as box schemes, farmers markets and at the farm gate. These allow the producer to know exactly what the consumer wants, while the consumer knows where the produce comes from and in the case of box schemes, saves on transport costs through delivery of produce to their homes. In developed countries, non-certified organic produce usually carries a higher price than its conventional counterpart, in accordance with the specific consumer willingness to pay.

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Organic Agriculture: Why is organic food more expensive ...