|
 |
| Volume No. 1 Issue No. 46 - Friday August 15, 2003 |
Do WE Have all the Answers?
 Letters to the Editor
Mention is made of the organic market in the US growing by 20% over the past 10 years. These percentages over the past 10 years look very impressive form a purely economic point of view. However, what I need to know is the percentage of organic foods to the total value and volume of foods produced and imported in the US. The other consideration is what percentage of the US population (I think its now 270.0 millions) are prepared to pay between 10 % and 30 % more for their food bill, and what income level is prepared to pay this much more.
All the comments I have seen so far centered on: (1) there is a growing market; and (2) prices are 10 % to 30 % more for organic grown foods. I am yet to see any information as to the economics of producing these organic foods, like the yields, the cost of a unit of production, what are the resources employed as against the non organic foods.
While it is expressed that organic foods are healthier, I strongly hold to the view that if we stop eating all these junk foods, pay more attention to our diet, exercise more, we can be just as healthy or healthier and live productive and longer years by eating non organic foods. In fact with non organic foods we are living longer.
On the matter of markets, one of the fundamental problems we have in Dominica is that if we want to increase our bottom line, that is our profit, the first thing we think of and do is increase our unit selling price. We pay very little and or no attention of looking at reducing our unit cost of production by increasing our volumes and by so doing spread our fixed cost over a much larger volume base. I contend that there are markets, but our cost or prices are much higher and therefore are not competitive. There is also the problem of supplying volumes over a sustained basis.
Like you I have my reservations on this organic approach being so actively promoted in some circles and unfortunately led my misinformed politicians. There is clearly merit in the organic approach but it will take a lot of time and effort to get things right. I am not optimistic that any of us will see Dominica manage this conversion of its agriculture in our lifetime.
Grayson � Dominica
I personally believe that we can do without genetically modified products and that these products will not solve the World's problem. However, given that genetically modified foods are being pushed by those with the money and power, will they or won't they get their way?
I believe they will get their way (they are already getting their way) and as such we need to bear that in mind when planning for the future. For sure, the decision by big economies very much impact on our livelihood.
For every report opposing genetically modified crops, the powers that be are sending out more applauding the virtues of these crops.
Maureen � United Kingdom
Can someone tell me whether the authorities instructs the farmers on how to carefully use and store the chemicals used to manage pests and parasites on their cultivation. I'm asking this question because of some concerns which were raised by some younger individuals reluctant to farm because they have some concerns about the run off of chemicals into the rivers, streams and springs. In addition, some farmers don't use protection and drink water from the very same water sources close to their plantation where they have just used these chemicals.
Athenia � Canada
The market for organic foods is about 2 percent of the overall US food market or roughly $11 billion. This does not include natural and specialty foods.
When a segment reaches 4 percent it is no longer a niche market, but mainstream. With general movement towards organic foods due to customers making conscious choices the 4 percent mark will be achieved in the near future.
The demographics for organic food are individuals making more than $50,000. Whole Foods, the main organic supermarket in the US will be adding over 50 stores to its portfolio in the next two years. Its rival, Wild oats, will establish an additional 20 stores.
The major geographic areas are New England states, California, Northern Texas, Atlanta, Florida, North Carolina and a few enclaves in the Midwestern part of the country.
The question before us is what are organizations like the Dominica Academy of Arts and Sciences (DAAS) and its research and business committees going to do about it. We could keep talking, decide that it is not viable, that we need to do research in collaboration with other Dominican entities, or put a program in place to begin to explore possibilities.
While the price of Dominican foods due to the realities of the small farming methods is an issue, high prices could be justified given the high quality of Dominica�s food items. Case in Point: kiwi fruit in New Zealand was previously fed to cattle in the same way Noni is being fed to pigs in Dominica. A company called Zespri International took the fruits and marketed them as high profile fruits and charges a premium price for them. We can do the same.
It is high time that we transform our huckster industry into the Dole and Chiquita of the Caribbean. With proper positioning, which requires research we can do that.
Neal - USA
|
|
|
