Small Town News

Locally-grown or organic produce gets premium prices

---

Consumers choose locally grown food for product freshness and to help support local small farmers. And they're also more willing to pay a higher premium for "locally grown" than for "organic, "according to a new University of Minnesota analysis by economist Luanne Lohr.

Lohr says there's some evidence that consumers may seek more locally grown products due to concerns about food safety and agro terrorism threats. "People feel safer buying local food, especially meat and dairy products, "she says.

Savings of diesel fuel with the reduced carbon dioxide emissions is another argument for local foods. According to an Iowa State University study, regional distribution of produce could save 273 miles per truck haul from Chicago to the states of Iowa, Minnesota, Wisconsin, Indiana, Illinois and Michigan. This would save almost nine million gallons of diesel fuel per year and reduce carbon dioxide emissions by 195 million pounds per year. Details of the Iowa State study are available at www.leopold.iastate.edu/pubinfo/papersspeeches/ppp/intro.html on the Web.

Sales of organic food products have increased rapidly in recent years, although Lohr says there's some evidence that growth is slowing. Her analysis also discusses the relationships of organic products to genetically modified organisms (GMOs), foreign standards, eco-labels and social goals.

GMOs are not permitted in certified organic products. However, Lohr says entry of "mainstream" farmers and food processors into the organic industry may add pressure to permit GMOs. "Field contamination by cross-pollination with GM varieties may undermine efforts to keep organics GM-free, "she says.

"U.S. refusal to label and regulate GMOs in conventional agriculture is a barrier to organic trade with Europe and Japan, "Lohr says. "Fear of contamination means loss of markets to countries that don't permit GMOs."

"In terms of foreign standards for organics, protectionism is likely to continue in many European Union (EU) countries, "Lohr says. "Producers and manufacturers in the U.S. will face greater competition from foreign sources than the EU will."



Copyright 2010 Lafayette Nicollet Ledger, Lafayette, Minnesota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2011 Lafayette Nicollet Ledger Lafayette, Minnesota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

More from Lafayette Nicollet Ledger