Efficient logistics brings prices of organic products down

According to a new study from SLI, Swedish Institute for Food and Agricultural Economics, the relatively low Swedish prices of organic products can be seen as a consequence of a well working distribution, well established relations with the large retailers and high quality products.

In Sweden and in Denmark the situation is similar. The prices differ between products, but the average prices correlate. As a general conclusion, it has been found that both countries has well working distribution processes and large retailers connected within the organic food movement. As a comparison, in Germany and France, certain large retailers are not connected to the suppliers of organic products. The products are to a larger extent distributed through separate channels, not through the mainstream retailing organisations.

The conclusion of the study is that prices can be brought down, by engaging large retailers and by developing the logistics. This results in that organic products become relatively more competitive in relation to other products. Further efforts in the organic area impacts not only the environment, but also the consumers through lower prices, according to SLI.

Source: Swedish Institute for Food and Agricultural Economics
www. sli.lu.se

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