This whole article was very interesting, but some of these prices are jsut plain scary. "In some parts of the country, a loaf of organic bread can cost $4.50, a pound of pasta has hit $3, and organic milk is closing in on $7 a gallon."
"Organic prices are rising for many of the same reasons affecting conventional food prices: higher fuel costs, rising demand and a tight supply of the grains needed for animal feed and bakery items. In fact, demand for organic wheat, soybeans and corn is so great that farmers are receiving unheard-of prices.
But people who have to buy organic grain, from bakers and pasta makers to chicken and dairy farmers, say they are struggling to maintain profit margins, even though shoppers are paying more. The price of organic animal feed is so high that some dairy farmers have abandoned organic farming methods and others are pushing retailers to raise prices more aggressively.
...There has been no new surge of land going into organic,” said Lynn Clarkson, who buys organic grain as president of Clarkson Grain in central Illinois. “We are having to compete with this ethanol juggernaut,” he added, referring to the growing use of field corn for fuel.
...Doug Hartkopf, a dairy farmer in Albion, Me., said the high feed costs forced him to stop farming organically in December.
“Instead of paying $3,000 a month, I was paying $7,000,” he said. “It was a very tough decision. It was something we had to do.”
In all, at least 25 dairy farmers in the Northeast have retired early or stopped farming organically in the last six months, said Ed Maltby, executive director of the Northeast Organic Dairy Producers Alliance. He predicted that the shifts would continue unless farmers received a price increase of about 25 percent from milk processors." LINK
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