July 11, 2014

No one wants pesticides and antibiotics creeping into their dinner. But organic food is expensive! Sometimes it's double the amount of their non-organic counterparts. Organic foods cost more because they require more labor and more expensive supplies to produce. But the huge organic demand also raises prices; organic sales have been steadily increasing each year and are expected to reach 35 billion in 2014 (see USDA chart). But the truth is some families just can’t afford to double their grocery bill.

Walmart recently announced it will carry Wild Oats organic food products, and promised them to consumers at affordable prices—25% or more in savings on everything from quinoa to chicken broth. This could open the door to organic for more families.

 

This raises an interesting point because many people associate organic with small-farm, local products, and Walmart is the king of the big-box chains. Buying from big-box grocery stores defeats the purpose of supporting local, organic farmers, even if those farmers are taking a toll on your paycheck.

 

Will other brands be forced to compete with Walmart’s lower prices, therefore driving down the cost of organic products as a whole?

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