Fairer prices for agri-food products are the future

The economic bureau of ABN Amro predicts that environmental effects of food production will increasingly be passed on to consumers in the coming years. The phenomenon True Pricing (also called True Cost Accounting) is thus becoming practice.

Curve Prices

For example, prices of non-organic vegetables will then rise, as their social costs are twice as high as those of organically grown vegetables, while the consumer price of organic vegetables is currently higher.

Sustainability costs money

A survey by ABN Amro shows that half of the consumers already think they pay a fair price, about 30% suspect that the prices are too low now. 90% do expect price increases in the next five years. According to the researchers, this indicates that people do realize that making food production more sustainable will cost money.

Better prices for farmers

In addition, the call for more transparency and better prices for the farmer is growing. According to the LTO and LLTB the cost price has been rising for years, but supermarkets are not willing to pay higher prices. This pressure on cost prices hinders the sector's sustainability and investment in animal welfare, while farmers are eager to make such changes.

Awareness

With an online campaign #whatkrijgtdeboer LTO wants to make consumers aware of this skewed situation and open up the discussion with retailers. Roel Boots of the LLTB: "We hope that it will contribute to raising awareness among consumers. Farmers earn too little now. That's why we want to spread the campaign regionally and give it a boost.

More about True Pricing? Read the background article True Pricing: producing sustainably for a fair price

Sources: nu.nl, Telegraaf, Dagblad de Limburger