Organic foods are more expensive than conventional counterparts due to the limited supply compared to demand. The production cost of organic foods is high due to the great labor input. In addition, the supply cannot meet demand as enough production of a single product is done to reduce the overall cost. The marketing and distribution chains of organic products are relatively inefficient. The demand for organic food is increasing with a shift in beliefs and the adoption of a healthy lifestyle. More people in the world are turning to foods that are produced naturally without chemicals due to the associated health benefits. The demand keeps on increasing, yet the supply is too low. The supply of organic foods according to Food and Agriculture Organization (FAO) is hindered by other factors such as environmental enhancement and protection and development of the rural regions reducing production farms, making it hard for supply to meet demand created for organic food.
Delegate your assignment to our experts and they will do the rest.
