I’m not really keen on the term organic. It’s become a little too fashionable for my liking, it seems to be as much about the expensive upper class image as about it’s actual roots – no pesticides, ethically produced etc…
Having said that, I do realise that the term ‘Organic’ is serving a valuable purpose.
The Problem
Currently, products are predominantly marked with monetary costs, social costs are rarely advertised.
For example, when you visit tesco (or other food outlet) the only costs displayed are the monetary costs. Each item is labelled with a monetary price. Purchasing decisions are based on these monetary prices, personal preference and efficacy of the marketing/packaging of a product.
Many consumers have become concerned about a different cost. The social cost. That is, the cost to the environment to produce the product and the cost on the animals or humans that produce the product. ‘Fairtrade’ and ‘Free Range’ are relatively new terms to help as make decisions based on social cost. These terms, along with the ‘organic’ label help consumers understand how a particular product has been produced, it also helps to explain the higher price tag these items carry.
These terms enable consumers to make comparisons between products, considering monetary price and social cost.
Beyond Organic
As interest and concern increases over the environment and social cost of products I expect to see new systems come to the fore further enabling consumers to understand social cost and make decisions accordingly, we’ve already seen suggestions of short video clips demonstrating the social cost of battery farmed eggs and caged chickens.
Some possible scenarios might include a traffic light system or star rating based upon the social cost of a product, with air miles, workers pay, animal welfare, packaging and recyclability all being considered and rated. We’ve already seen a similar system established for white goods (based on energy efficiency), is food and drink next?
Will we go one step further and have seperate sections of the supermarket for products with the lowest social costs? Not so far fetched really, we already have seperate sections for organic products, gluten free, wheat free etc..
I also forsee further tax breaks for ‘green’ goods, we already have a tiered system for motor vehicles, we will surely see this going further with VAT breaks on high energy rated white goods and perhaps one day on food too.
This of course would make ethically produced and ‘green’ goods more affordable to the masses, thus having the economic effect of less demand for the products causing the highest social costs. As demand drops, so will supply. We would eventually see farmers and producers change their practices to meet this new demand for products with low social costs.
How far we are away from this is anyone’s guess, but the wind of change is definitely here.
Your thoughts..