Why are the prices at my Co-op so much higher?

[cleanhippie]

The produce, all allegedly grown locally (within 50 miles) and organic, costs 30-50% more than the local chain grocery where the produce comes from all over (especially mexico and south america this time of year).
The organic meat is nearly TWICE what the exact same brand costs in the chain grocery. In fact, one can find identical items on the shelves of the co-op and on the shelves of the chain grocery, and in every single instance, the co-op is much more expensive.

Why?

[geardaddy]

1. My guess is that the farms growing the produce

or raising the animals are a lot smaller than factory farms.

[cleanhippie]

4. Yes, but the cost of transport to market is vitually nil.

I guess the bottom line is, prices need to be competitive if we want people to "eat locally".

[geardaddy]

18. I agree.

I'm just saying that the cost of production is likely higher for a small organic farm. Until more farms come about, it's pretty much up to the ones that exist to establish the price and if there are fewer farms, there's less competition. Plus, they don't get subsidized by the Dept of Ag like factory farms do.

[BanzaiBonnie]

2. One factor may be that organic feed is more expensive

Your co-op may be paying a living wage to those who work there. Those who are working in the fields may be paid fairly.

Workers in other countries may be paid slave wages. Would you steal from another person? No? When people are paid in slave wages, isn't that a theft of their life energy?

And by slave wages, I mean wages that are not enough to take care of basic needs. Wages that keep them coming back, but not enough to put adequate food on the table.

But that's not up to you? Right? You're not buying those products.


Other people may know more of the factors.

[cleanhippie]

6. I do not appreciate you insinuating that I advocate wage slavery and theft.

I have a family to feed, and a limited income to do it on. I have to make smart fiscal decisions, so I ensure I maximize my purchasing power. I cannot AFFORD to shop at the co-op. I want to support eating locally, but it is cost prohibitive to do so.

[BanzaiBonnie]

14. So, you're worried that if you don't have cheap food

you won't be able to feed your family?

[cleanhippie]

15. Why so obtuse?

[BanzaiBonnie]

17. Why are you so afriad of facing the discomfort

of feelings this brings up for you?

When someone asks a question, I answer as sincerely and honestly as I can. When the response is to call me out and make unfounded accusations, rather than genuine response, I wonder if you really want to be part of this community.

Did you want discussion, or did you just want someone to agree with you?

[cleanhippie]

21. The only discomfort is having to endure your asinine BS.

Perhaps if you had started off by NOT accusing me of horrible things....

[laconicsax]

23. C'mon cleanhippie, you know that people who can't afford the 'responsible' choice are evil.

Don't you love RW reasoning?

[cleanhippie]

24. Apparently so. For a second there, I thought I was on a liberal forum....

[happynewyear]

25. +1,000,000

n/t

[fredamae]

3. They can't order as much?

Smaller orders cost more. I have wondered the same thing, actually.

[OneTenthofOnePercent]

5. Two reasons...

1) Factory farms do what they do for a reason. Their means of production produce far larger harvests and marketable items. Greater yields, easier crop maintenence, automated processes... it all means more production from the same parcel of land. This makes factory-farmed foods cheaper. Obviously, underpaid foreign labor is cheaper too.

2) You shop at a Co-op for "better food". It's healthier and it supports a local economy. By definition, you shop there because you have higher standards and specific demands. a) "better" food is always going to cost more than "inferior" food due to demand. If it did not, then the "inferior" brand would not exist due to market forces. b) The Co-op knows your a picky shopper and is just fleecing you for money they know you are probably willing to pay.

[cleanhippie]

7. Your second point seems spot on.

But the term "better food" is suspect. I have seen no real scientific evidence that organic food is more nutritious than "regular" food, so I am suspect about those claims.
And how are identical products, one on the shelf at my co-op, the other on the shelf at the chain grocery, any different other than the exorbitant price the co-op sells it for? "Better food?" Hardly.

Fleecing me? I think you have hit the nail on the head.

[geardaddy]

19. Then don't shop at the coop.

Problem solved.

[Dorian Gray]

28. True

I live in Park Slope in Brooklyn, and there is a Co-op here. I've never joined it (for a variety of reasons), and I don't intend to. And it's never occurred to me to complain about it. I just don't go.

[Dorian Gray]

27. To some people

"better' doesn't mean solely nutritious. It might mean, full of less pesticides, not genetically modified, or chemically altered. It might also mean... locally sourced, less of an environmental impact. And joining a Co-op might engender a sense of community, as well. When I claim food is "better," it's not necessarily about nutrition.

[PetrusMonsFormicarum]

8. OG certification is expensive.

I sling organic produce in a natural foods grocery.

Fuel surcharges have returned to delivery invoices (in some cases, they hadn't gone away since the last gas price spike). Weird weather has taken a toll on numerous crops in numerous regions. California's Spring went from record-breaking cold to heavy rain, retarding crop development. Last winter's freeze went all the way to Mexico, virtually destroying any chance for stonefruit harvests when the blossoms were frozen. Here in Oregon, local crops are weeks behind schedule because we only saw our first 60-degree day last weekend.

Shortages in other markets may also be affecting your locally grown produce, but I would venture to say that crop yields are not where they should be, and the remaining harvestable product is that much scarcer.

Additionally, co-ops rarely have the buying power of the big chains or even smaller local grocery companies. 20 pallets of melon might be sold at 10cents a pound, but if you can only afford to bring in a single pallet, you can expect to pay more like 25 cents a pound (just an example, not actual prices).

[cleanhippie]

9. Makes sense, but...

That does not explain the exorbitant prices for identical products found in the chain grocery. It all just seems like a rip-off to me.

[Jackpine Radical]

10. Again, volume deals allow the big guys to dictate prices.

[druidity33]

20. identical products? really? nt.

[cleanhippie]

22. Really.

Organic beef, same farm, same packaging, $3/lb MORE at the co-op.

Boxed couscous, same brand, identical size, identical packaging, $1.75 MORE at the co-op.

Seriously, there are hundreds of identical items, they simply cost much more at the co-op.

[druidity33]

26. It's not like that at my co-op...

If they can't negotiate reasonable prices, they get a different product. Mostly, it's companies that refuse to sell to the Co-op at the same price they sell to conglomerates. There are some things that are dupes, but the prices are comparable. I mostly just buy the bulk stuff anyway (that's what's really cheaper and why i go there).

When i worked at a Camera store, we dropped Fuji and Sony because they kept selling the same models we had to Walmart for a much cheaper price... we just stopped carrying their products. Maybe you should try talking to one of the Companies you want to purchase from and ASK THEM why it costs more at the co-op?

:shrug:

[housewolf]

11. Why don't you ask your co-op's managment

I imagine they could tell you

[FSogol]

12. Economics 101: Prices are set by what people will pay, not by what it costs to produce.

:shrug:

[TygrBright]

13. Here ya go:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=598861&mesg_id=598861

Sorry, it was too long and complex to just post as a response, and anyway I wanted it in my Journal. But hopefully it will help explain the discrepancy.

helpfully,
Bright

[cleanhippie]

16. Thanks for this, interesting stuff to ponder.

[xchrom]

29. very well thought out.

and i agree -- and add that safeway or costco -- are buying in greater bulk that a co-op ever could.

having been a small business owner -- i can tell you the difference is significant.