thenextmile

More people are buying organic food, but is the cost eating into their wallet?  The organic industry has seen rapid growth in the last couple years.  In 2006 for instance, organic food sales in the U.S. totaled $17 billion, up 22 percent from 2005.  And that number is still rising.  And while both the price of organic and conventional food is skyrocketing, experts believe that green-conscious consumers will continue to pay top dollar for organics, before even considering reverting back to non-organic options.

Unlike the country’s 2001 recession, consumer today are coping not only with slower economic activity, but rapidly rising prices.  Many of them will continue to buy lower-priced groceries at retail outlets, but most are turning to farm co-ops, local farmer’s markets and higher end specialty stores to get the best organics for their money.Last year, 58 percent of U.S. consumers said they regularly check unit pricing at organic and specialty food stores, up from 52 percent in 2006, according to a study on grocery shopping trends by the Food Marketing Institute, an Arlington, Va., food retailer and wholesaler trade organization.And produce isn’t the only corner of the green market seeing the increase.  Price spikes are also steeper for grain, dairy and poultry.  And with many consumers worried about growth hormones and antibiotics, more people are turning to organic dairy and meat options.  A half-gallon of organic whole milk last week was selling in the U.S. at an average price of $4.19, compared with $2.09 for a non-organic version.  And a dozen large organic eggs cost $4.19, compared with $2.99 for their non-organic counterparts. A loaf of organic whole wheat bread carried a $3.99 price tag, while non-organic loaves ranged from $2.99 to $3.49.

The USDA last week said total food prices could increase by up to 5 percent in 2008, compared with 4 percent last year and 2.4 percent in 2006. But 2008’s price spike could reach 9 percent for fats and oils and 8.5 percent for cereals and bakery products.

So no matter if you’re going green or going conventional, the price for your lunch is going up.