adoption of organic food - 4675 Words

adoption of organic food (Case Study Sample) Content: Adoption of Organic Food Production Name Course Institution Introduction Organic farming entails the use of biological methods in all farming practices. Ideally, the approach engages the farmers in the use of manure sourced from animals and biologically developed growing and controlling methods. The method enables the society to deviate from the consumption of food products grown under the utilization of chemical products (Lockie C.A.B. International, 2006). Arguments are that the farming technique is gaining momentum since the products grown and marketed are less intoxicating to human health compared to those grown using chemical methods. The marginal growth indicated that a 20% consumer population by the year 2001 embraced the agricultural approach (Adams Salois, 2010). The trend has since changed, and the revenues accrued from the produce sales stands at US$70 billion in current surveys. Therefore, organic agriculture continues to present abundant products to the global consumer markets and it seems that the population is diverting from the use of ch emically grown and processed farm products. The study evaluates and asserts on the production, marketing, and economic practices associated with the adoption of organic agricultural approaches. Organic agricultural practices are converging into the application of several principles, which ensure that the grown and marketed products suit the needs of the global consumers. For instance, the Principle of Health encompasses the farmers to execute their practices into producing the best agricultural goods without exposing the lives of the consumers into a series of risks (Chaudhry, et al. 2010). The principle stipulates that the process of organic farming prevail at the extent when the practices enhance the health of the soil as well as that of the plants (Belk, 2010). Further, the animals and human consumers' lives should accrue benefits rather than health risks from the consumption (Sun, 2012). Secondly, the Principle of Ecology dictates that the farming practices executed by the players should serve to emulate and enhance the ecological systems and cycles and emulate towards a sustainable edge (Mayen, Balagtas, Alexander, 2010). On the third account, the Principle of Fairnes s sets organic agricultural standards above par through the implementation of terms and conditions to ensure the benefits are distributed to the environmental factors equitably (Hand Martinez, 2010). Lastly, the Principle of Care beseeches the parties in the organic agricultural sector to execute precautionary and quality control practices for the benefit of the society, environment, and the future generations (Lal, 2011). Market value of organic commodities The market trends of organic agricultural products have been changing since the beginning of the Millennium. It is evident that the revenues accrued from the sales of organic agro-products were US$20 billion. The trend increasingly changed over the first decade to stand at $35 billion in 2011. Other producers of the products include South Africa, Australia, New Zealand, and Japan (Smith Olesen, 2010). The market value of organic agricultural products is continuously increasing with the global community realizing the benefits of consuming the products over those grown with the use of inorganic practices (Henson Humphrey, 2010). The EU seems to be unifying approaches to pricing to determine the delivery of the best measures, which will ensure that farmers of the member states engage on organic agriculture practices (Blair, 2011). Members of the associations aiming to draw the global production and consumption to embrace a 100% use of organic products assert that reduction of taxes and funding of the products is the key to increased demand of the products. Ideally, the current situation of organic agricultural practices is improving as retail stores and other market intermediaries continually create shelf space to the products (KlopcÃÅ'Å’icÃÅ'Å’ Kuipers, 2013). For instance, Tesco, Asda, and Morrisons are the leading retail chain stores for the purchase and sale of organic agricultural products. In the U.S.A, Asda and Wal-Mart are competitive in establishing profound market shares in the organic food products' sales segment (Chakrabarti, 2010). Precisely, the giant retail stores are remarkably influential to the segment's produce since most of the consumers visit the shops with views of purchasing products and services of the best quality. Members of the segment must conform to the call for unified pr icing approaches since it is serviceable to curbing the threats of overproduction, underproduction, and undervaluation of the organic agricultural products presented in the markets (White, et al. 2010). The demand of the products is rising whenever its supply is efficient and it is likely that the demand will not change. The demand is high for the ageing population, which seeks to consume biologically developed and grown food products to avoid the risks associated with inorganic farming methods (Baourakis, 2004). The increased supply of the products in the US, UK, Japan, and other regions with profound economic basis is an indication that consumer awareness is stimulating a level of increased demand for the long-term benefits. Further, the EU has enforced a policy that seeks to establish a "minimum price" for the entire regional members to adapt a realistic approach in the reduction of uncertainty for the member countries' farmers (Kotler, 2011). The resolution seems to be appropriate since the internal population will be observant to ensure that the farmers engage in healthy, caring, and environmentally friendly practices, and the prices stipulated for the products compare reasonably with that enforced by the regional conventions (Klonsky Greene, 2005). The use of a minimum price approach affects the demand and supply practices for organic agricultural goods. The effects of a minimum price approach are that the supply of the agricultural products presented by different farmers from different continents to the global markets will increase according to every slight increment in demand (Tuomisto, et al. 2012). The obvious reason to the positive elasticity of organic agricultural products' demand emanates from the increasing awareness of the detrimental effects of consuming inorganic agricultural products. For instance, the market is realistic of the cancerous effects that are borne by the lengthened use of products grown under the application of chemical measures (Kuminoff Wossink, 2010). The price remains constant and the farmers compete to produce and exploit the market rather than produce and sell in accordance to the level of demand (Kristiansen, et al. 2006). It is certain that the demand and supply of organic agricultural products is likely to show positive congruence to the law of demand since the minimum price is constraint in the cases of underproduction or overproduction during the low and high the seasons (Conferencia, et al. 2006). Further, the organic food consumers are contented of the availability of supply despite the seasonal changes hence they are increasing their margin al consumption patterns. Further, families with infants are increasingly entering the market segment and it is evident that the rate of increase in the consumer population is tripling (LÃÆ'Â ¤pple, 2010). The use of price quotas in the segment is an abundant solution to ensure that the organic agricultural market within the producing member states conform to the ideal needs of the relevant organizations and consumers (Kearney, 2010). Certainly, the imposed quotas seek to restrain the prevalence of overproduction since the farmers acknowledge that the concerned governments do not seek to bar growth in output, but rather target to ensure that the markets decipher adequate supply with reduced rates of scarcity and overproduction (Massoud, et al. 2010). The market value of the organic products is adequate since the planners show their devotion in evaluating the needs and preferences of the consumers prior to the delivery processes (Canavari Olson, 2007). The concerned unions' use of subsidies and incentives to discourage the use of chemical agricultural methods are of profound resolutions into ensuring that the markets continue to uphold the necessary values drawn from the products' cons umption (SÃ ¡nchez, 2010). The application of embargoes and quotas in the EU, NAFTA, and the South Asian organizations are an appropriate surety that the goods availed into the markets are beneficial and fit for human consumption (Mount, 2012). Therefore, the market value of the produce is continuously increasing over the challenges of other agricultural products for the consumers remain to be loyal to the biologically grown and processed products (Sandhu, Wratten, Cullen, 2010). Further, the 35% growth is viewed as increasing since new consumer groups are entering the markets. Currently, the market value of organic agricultural products stands at $60 billion. The U.S.A undertakes most of the agricultural activities and markets the products to the European and South Asian regions (Pereira Ortega, 2010). Economic considerations The global economic growth towards organic agricultural production and consumption seems to be on a positive and a constant upwards trend since the onset of the 1990's especially in developing countries (Seufert, Ramankutty, Foley, 2012). The USDA organization asserts that the demand and supply of organic food products are currently on the rise with the current statistics revealing a double-digit growth. Arguably, the organization stipulates that the products are available in 3 out of every 4 stores in the local and foreign markets (Behnassi, Pollmann, Kissinger, 2013). However, the economic trend seems to be affecting ...