As Demand Surges for Organic Food, New Price Risks Emerge

Published by
The Street

By Ryan Koory, Vice President of Economics, Mercaris U.S. organic commodities sales reached nearly $62 billion in 2020 as the organic industry achieved its 12th consecutive year of growth. However, a lack of transparency, thinness of the markets and pace of growth all combine to amplify price risks for products like organic corn and soybeans. A dramatic transformation of the food industry, driven by a stunning array of consumer choices, has taken place over the past 30 years. Imagine walking the dairy aisle in 1990 compared to 2022. Options have expanded beyond the choice of merely whole vs. s…

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