When buying organic makes sense and when it doesn't

US - Grocery-store shelves are increasingly crowded with pricey organic versions of everything from milk and eggs to hot dogs and beer. But some of the options pitched as healthier may not always be worth their higher price tags.
calendar icon 16 January 2007
clock icon 2 minute read
Born as an environmentally friendly alternative to conventional farming methods, the organic-food industry has mushroomed into a juggernaut with nearly $14 billion in sales in 2005 and annual growth of roughly 20 percent. Food empires like Dean Foods Co. and Danone SA now churn out organic products, and Wal-Mart Stores Inc. has become a major seller of organic food.

One big reason food makers and retailers are scrambling into the business: Shoppers often are willing to pay a fat premium for anything with the word "organic" on the box. Organic Valley brand low-fat milk, marketed by the Organic Family of Farms/CROPP cooperative in La Farge, Wis., costs $3.69 per half gallon at a Publix Super Markets Inc. store in Atlanta, for instance, compared with $1.99 for a store-brand carton of nonorganic milk.

The term "organic" refers to farming methods that eschew pesticides and other chemicals in an effort to protect the environment. But while some consumers do buy it to support the environmental goals, increasingly people seek out organic food for the perceived health benefits and to avoid chemical residues. More than 70 percent of Americans buy organic at least occasionally, according to marketing firm Hartman Group Inc.

Since 2002, the U.S. Department of Agriculture has imposed strict standards on which foods can say "organic" on their labels. Fruits, vegetables and grains must be grown on land free of prohibited synthetic fertilizers or sewage sludge, and genetic engineering and irradiation are not allowed. Meat, poultry and milk must come from animals that are free of the growth hormones and antibiotics that are given to conventionally raised animals to boost production, and must be fed organic feed. They also must have access to the outdoors -- although that doesn't mean they always get to roam free.

Source: post-gazette.com
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