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Organic

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Submitted By major89
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Why do firms make Organic products?

-Organic food is made with less chemicals and food without chemicals are viewed as an attractive, more healthy choice.
-Companies are making organic products because organic products have a growth rate of 5 times that of conventional packaged foods.
-This information has led to some large chain grocers to even create their own brand of organic products.

“Organic grocery products are ringing up sales growth of 15 percent a year, that is five times the growth rate of conventional packaged foods. Several major supermarket chains have begun offering their own brand of organic pasta, cookies and juice. Now, giant food processors and packagers of national brands are getting in on the organic action. Wal-Mart. the nation's largest retailer decided earlier this year to expand its organic offerings in the produce and grocery aisles across all its outlets and is doubling the number of organic items in 10 percent of its stores.”

The reason why people don’t buy Organic product.
-Some consumers don’t buy organic due to the higher price of the products.
-Organic products can cost consumers 20%-100% more than the typical non-organic products.
-It is expensive for traditional farms to be converted to organic farms.
-Only 0.9% of farmland throughout the world is organic.
-Organic farms produce less than traditional farms so there are less organic ingredients available to make these products.

“America's appetite for organic food is so strong that supply just can't keep up with demand.
Mainstream supermarkets, eyeing the success of organic retailers such as Whole Foods have rushed to meet demand. The Kroger Co., Safeway and SuperValu are among those selling their own organic brands. Wal-Mart said earlier this year it would double its organic...

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