Analysis Of Going Organic Is Not A Simple Switch

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Organic products are growing in popularity, but the rising demand also creates some logistics problems for the companies that supply them to the public. However, third party services are available to handle order fulfillment and help alleviate some of this strain.

Organic foods and ingredients started out as a niche market, but recent years have seen exponential growth. Tighter control and regulations over what can be marketed as organic have increased the quality of these products and garnered more trust from consumers. The increased demand prompted many organic growers to increase their acreage in order to keep up, but this is just one part of the process.

Going Organic Is Not A Simple Switch

With the high cost of certified organic production, …show more content…

Organic certification also does not happen overnight as farms that make the switch have to stop using pesticides and then maintain the proper practices for at least three years. This typically means much lower crop yields and higher input costs without the benefit of being able to charge higher prices during the transition period.

It is true that organic produce or livestock can ultimately be sold for much higher prices, but during the transition period, farmers are still stuck selling their food at conventional prices. There has been a trend in the greenhouse industry to shift to organic produce, but this is still not enough to satisfy the demand for organic products. To keep up with this growing demand, companies are increasingly turning their attention to the global market for organic ingredients.

This opens up another set of challenges for the producers and industries that make use of their products. The need for a rapid and flexible distribution system has caused the industry to turn to companies that specialize in order fulfillment services to bridge this gap. Outsourcing this important task to experts in the field who are adequately equipped to handle it allows both the producers and suppliers to focus on what they do …show more content…

Not everyone has the resources to expand their operations in such a manner, which is why the third-party services that are able to source ingredients from around the world play such an important role. These companies have experience dealing with suppliers and are able to obtain the ingredients at competitive prices while also making sure that everything is verified and certified. All these factors can be time-consuming and expensive for the buyers of these commodities if they need to do it all by

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