Are they all organic?
But when big companies buy organic product chains, this elicits many doubts about the proportion of organic products in these stores.
A study published in Common Health magazine in August 2012 shows that in the average organic specialty store, fresh produce makes up 20% of sales, healthcare products 15% to 20%, infused beverages 25%, and other products (dry goods, processed goods, utensils and so forth) 30%, and that organic products account for an average of 20% to 30% of overall sales. “The idea that organic stores sell nothing but organic products is just wishful thinking on the part of consumers,” the study says. In addition, Common Health states that though organic stores do contribute to the spread of the organic concept, sales clerks often oversell health foods, misleading consumers by overestimating their effects.
In response, scholars say that this is understandable if they wish to survive. Dong Guochang says that fresh produce makes up the mainstay of organic products in these stores; thus, because of low unit prices, small profits and short shelf lives, they have to be careful not to stock too much of it: “Independent and chain store operators need to make up for these shortcomings in other ways in order to survive,” he says.
Huang Chang-ju notes that the proportion of fresh produce in organic stores overseas averages about 20% to 30% as well: “A heavy concentration on fruit and vegetables is a particular feature of the organics movement in Taiwan, and that very overemphasis has led to disappointment in organic stores.” According to Huang’s analysis, Taiwan’s organic framework is currently lacking in two vital respects. The first is that organic livestock products have long been given the cold shoulder by agricultural administration authorities, leaving consumers with limited opportunities to buy them: “Livestock should be returned to traditional integrated farming methods [in which livestock and crops are raised together], which would be beneficial both environmentally [e.g. through the use of manure as organic fertilizer] and in terms of animal welfare. But the Council of Agriculture remains overly concerned with maximizing factory-style production efficiency. Thus, organic livestock products aren’t available to consumers.”
The second, considering the long-term development of the organics industry, is that the government should make efforts to foster the local organic processing industry, such as high-demand processed bean products or the increasingly popular floral and herbal teas, to sustain and increase the value of the organic products, “and not let imported processed goods monopolize the scene,” says Huang.
Are organics too pricey?
Another misconception is that organic vegetables are too expensive.
In 1999, Huang found in her research that the prices of Taiwan-grown organic vegetables were on the high side, over twice as much as for ordinary vegetables, while the price difference in European countries was between 1.2 and two times. She believes the chief reasons for the higher sales prices were that organic farming developed later in Taiwan, production technologies and marketing had not yet matured, and yields were unstable.
But today the state of affairs has changed for the better. Currently, the sales price for organic vegetables in specialty stores is between NT$35 and NT$45 per 250-gram pack, making a reasonable profit for farmers and sales channels while remaining within an acceptable price range for consumers. Huang says that current organic vegetable prices are more stable than for ordinary produce, because the costs of conventional farming, which relies on chemical fertilizers, have risen over the years, plus there have been advances in domestic organic growing techniques. Moreover, some organic produce is grown in greenhouses, and prices aren’t as susceptible to increases stemming from typhoons and other natural disasters.
It’s worth noting that organic sales channels in Taiwan have quietly reached into supermarkets and hypermarkets. These major channels enjoy an economic advantage due to scale, offering high quality and great variety at low prices, to the consternation of specialty stores.
In June, PX Mart signed a deal with an organic farm and began selling organic vegetables in 400 of its outlets all over Taiwan at NT$29 per package, with sales growing from 40,000 to 70,000 packages a week since the launch date.
Anticipating growth
“Supermarket sales of organic produce are good for the organics industry. It’s like when farmers’ markets opened up everywhere, giving more people the chance to know about organics,” says Huang. In Europe, whose organics industry developed over half a century, the sales channels evolved from direct sales by farms, to specialty stores, and then to supermarkets. The diversity of channels also drives the continued growth of the organics-consuming population.
“Organic stores don’t need to worry about competition from supermarkets, and independent stores don’t need to struggle against chains, because organic stores have always offered friendly and attentive service, stressing humanity and long-term relations: these draw in loyal customers from the community,” says Huang.
Dong Guochang points out that organic stores appear to be prospering, but in fact “Most of them rely on the enthusiasm and manpower of friends and relatives: people like them, but the products don’t sell well.” The reason why corporate businesses have invested in organics chains is that they’re taking a long-term view. They’re currently in the investment stage, relying on their ample financial resources and alliances to reduce operating costs and risk.
Li Meiyun, director emeritus of the Taiwan Organic Farm Educational Resources Society, believes that people should cherish the food safety and environmental value behind the prices, and gradually go back to the basics in their lifestyles. They just shouldn’t rely on health foods whose efficacy is over-exaggerated.
At the most fundamental level, organic specialty stores are friendly, highly innovative social enterprises, giving us the chance to protect our health and save the planet through our purchases, and to encourage the growth of high quality stores.