Rural Trader Blogs

Organic Farming

Organic Production has merit in today’s business environment.

Forget about the touchy feely aspect for a second; let’s just look at this from a financial perspective.

Even if the cost of production wasn’t taken into consideration the value of organic products is between 10 and 30% higher than conventional. Who wouldn't like that on the bottom line?

Organic products command higher prices at market because of a perceived added value. People are moving away from food smothered with dangerous (many are carcinogenic) chemicals, and toward food grow in healthy conditions.

You can argue against this all you like but organic products, including milk, beef, lamb, fruit and vegetables are in higher demand every year. The same can’t be said of conventional foods which as commodities rise and fall with the whims of the stock market.

Food Giant McDonalds would like to offer organic burgers in their restaurants but couldn’t supply the demand so have put that plan on the shelf.

Fonterra offers a higher payout for organic milk, why? Because there is a demand for it! They wouldn’t do it to get some warm fuzzies; it’s purely a business decision, and a smart one.

Now let’s get back to the cost of production part. Most growers or farmers who run successful organic operations report much lower cost of production. That’s not because they don’t put fertiliser on, it’s because they use what‘s already there, in the soil and add organic fertilisers and organic material to get soil microbes working. Once the soil is balanced and bought back from the dead it can release many minerals and trace elements that are often locked up by an excess of other minerals, like phosphorus and potassium.

The results of a truly balanced system are; healthier soil, healthier plants and healthier animals. This equates to lower cost of production from less chemical and drugs. Another set of good numbers for the bottom line.

Many conventional farmers are using organic products and principles and are noticing animal health benefits, why not go the extra steps and get paid for it.

Dairy farmers especially should be interested in the increase in payout on day one of starting down the road to certification, as farm income has dropped dramatically from last season.

There is far more information around now for those considering the move to organics. More mainstream suppliers are offering products and the information needed to take advantage of them.

Consultants are advertising their services to organic conversion famers and growers; it all makes sense, and dollars. Don’t do it to feel good if that bothers you do it for profit and the planet can feel good for you.