Roux Pecans

www.pecannuts.co.za EU Cerified Organic Pecan Nuts and Kernel

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Location: Ramah Farm, PO Box 255, Hopetown 8750. South Africa, Tel/Fax:+27-53-2040001, South Africa

Wednesday, June 11, 2008

Are "organic" products worth a premium price?

Anybody can label their produce as "organic" in South Africa, and the perception is that the consumer should pay more because you do. This happens in South Africa.

In the European Union you have to be certified by a registered certifying business ( a 3rd party) that the product meets certain E.U. legal requirements before the word can be used in marketing.

What "organic" is, is different to different people and they are selective in their perceptions.

Personally, I don't think that the term or word "organic" deserves any price premium unless it means a better or higher standard of quality or excellence.

The fact that "non-organic" products may contain harmful additives, or have a high carbon footprint amongst many considerations may be good enough reasons to lower the quality in the eyes of the purchaser - if those are considerations at all.

The mere fact that products or produce are labelled organic should not necessarily command a higher price on the shelf.

A higher price can only be achieved if the quality presented is better.

What is quality?

Like beauty; it is in the eye of the beholder.

Organic certification is a quality bonus - not a guarantee.

Soon you may/will find the likes of Pick 'n Pay and Woolworths in South Africa and Tescos and the like in Europe and USA have their own certifying businesses to certify "their farmers" to their standard.
I hope their customers are not hoodwinked.

Monday, June 09, 2008

Oil price and Taxes help organics

Have a look at the post on 26th April 2007.

Isn't it amazing how similar results can be reached from different angles?

I have had a lot of interest from farmers who use a lot of diesel and fertilizers derived from oil by-products since the dramatic price rises in the barrel price of oil.

In effect, taxes on fuel and the cost of inputs has made farmers think again about using these products. Farmers think through their wallets.

I was told recently that for a farmer to buy 10 bags of MAP (Mono-Ammonium Phosphate) he has to produce a ton (1000kg) of grain.

When ploughing with the massive tractors used today 2000 litres can be burned up each day by each such tractor. I fill my 2000 liter diesel tank once a year.

This will focus the minds of "progressive" farmers. "Progressive" means the bottom line only - usually.