Organic is the solution - Research Paper Example

Download file to see previous pages Over the years, consumer behavior has been observed that seeks low prices for food items as consumers spend more money frequently on food items as compared to any other product. This has created a huge demand for inorganic foods in the market. The purpose of this report is to provide useful information about the use and availability of organic food items. In this action research report, findings from a personal visit to Wal-Mart store are presented regarding availability and other factors affecting sale of organic foods. This would allow generalization of findings related to lower demand for organic foods and also, set out recommendations for boosting their consumption. A general understanding about organic foods is that they cost more than inorganic foods to purchase. There are several reasons for organic foods to be more expensive. These are not only related to the cost of production, but also to various factors, which indirectly affect production of organic foods. Limited availability of land restricts supply, which causes rises in price. Low turnover per employee working on the farm results in higher costs of production. Limited supply has direct effect on the transportation and distribution costs (FAO). In the US, organic food producers are required to obtain a certificate from US Department of Agriculture, which is very expensive to attain. The pre-requisites of this certificate require producers to have new equipment and methods to ensure consumer safety and maintain the standards of quality (Canavari and Olson). This adds to the costs of producing organic foods. At Wal-Mart, the phenomenon of higher costs and pricing is observed. The data for different food items both organic and non-organic are compared and it is clear that for the same product the price of organically produced item is higher than that of non-organic foods. For example, at Wal-mart, Avocados-Hass (non-organic) is sold at a price of $0.99 per unit; whereas, the price of Avocados-Hass (organic) is $1.61 per unit. It has been noted that all food retailers including major supermarkets or corner shops display and sell inorganic foods with limited space provided for organic foods. The display of organic food items in the store plays an important role in attracting customers. Since, the consumer choice of organic items is limited therefore, it is important for retailers to invest in adjusting designs of their stores to display organic items clearly. All major retail markers have clearly designated areas for shelving organic items. Although, Wal-Mart has clearly placed signs for organic items, but genetically modified products are also shelved very near to organic food items, which often confuses consumers and they end buying products that are not organic. Moreover, there is a lack of marketing and advertisements of organic products in the store. In comparison, non-organic products and brands are displayed in visible areas of the store. There is a common agreement on the view that organic food items are beneficial for humans as they are free from industrial chemicals and preservatives, which increase the age of non-organic food items (Givens; Langley). However, there is a limitation to this as the shelf life of organic food items is short. Since, the supply of organic food items is slower as compared to the demand therefore it becomes difficult for stores to replenish their empty shelves. For retail stores, empty shelves are considered as their loss as unsatisfied customers shift to other retail ...Download file to see next pagesRead More