Life

What's a Perfect Melon Really Worth?

Want to know why local, organic, sustainable food tends to cost more? Here's something to chew on.

By Christopher Bodnar, 10 Nov 2010, TheTyee.ca

MelonHarvest

Two helpmates, with harvest, at the Glen Valley farm. Photo: C. Bodnar.

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[Editor's note: This was posted on September 29 to the Glen Valley Organic Farm blog. We reprint it with permission.]

Melon season arrived on the farm today and melons make me think of money. Prices, more specifically. And I've been thinking about prices and money a lot this week, after a CBC radio host commented on the cost of local, organic food . . . but more on that in a moment. I'm also thinking about watermelons.

The truth is, the melons surprised me. I've been ignoring the melon patch. Nothing else is planted around it, so it's been easy to walk by and not look too closely.

Today, however, we ran out of fruit in the house. And both children were screaming. And Paige (now eight months pregnant) needed some quiet. It was time for a walk. A trip yielding fruit would be even better.

We ended up in the melon patch. Watermelons were the only conceivable fruit I could think of that might be ready on the farm (apart from apples, of course). In the back of my mind I recalled Jeremy commenting on the fact that melons might be ready for the market this weekend. I didn't think much of it at the time; last year we had melons in mid-August. Beginning of October melons? They couldn't be any good.

Watermelons are a difficult crop, but well worth the effort when they grow well. They need heat, lots of water, weeding and more heat. We started growing melons two years ago as an experiment. When we sent a bunch to market for the first time we had to figure out a price -- we had no precedent.

Once our costs were considered, we figured that we would have to charge the same price we have for our squash -- $1.25/lb. This came as quite a shock to customers who normally pay $0.29/lb for conventional melons in the stores through the summer. After various comments about the price that first week, we discussed whether we needed to lower the price.

Water and cash flow

So, consider this: each melon requires about 190 litres of irrigation water. It makes sense when you think of the primary ingredient of a watermelon: water. In fact, a number of customers noted that our price seemed rather high when most of the fruit is water (of course, they still line up to pay $3.00/lb for tomatoes that are 94 per cent water and $2.50/bunch for spinach that is 92 per cent water).

Nonetheless, a large portion of the population doesn't blink an eye at paying $2.00 for half a litre of bottled water -- that's four times what they pay for a liter of gasoline for their car. So what value do you place on 190 litres of water, especially when fortified with fiber and a great range of nutrients?

Then I heard about watermelons in Japan. It turns out they are a delicacy. Many people in Japan have never tasted watermelons. They regularly sell for $200. Moreover, the first Hokkaido watermelons of the season are auctioned at an astounding price ($6,000 two years ago). Unbelievable? Read about it here.

All things considered, we figured that $1.25/lb was a heck of a deal for melons. In fact, Lululemon should be designing yoga bags with melon carriers, not water bottle carriers -- think of the Vancouver fashion statement that would make. The next Saturday morning I explained this to our customers waiting in line at the market. We sold out of melons in an hour.

The cost of local, organic food: Here's the dirt

Having said all of this, it still doesn't answer the question of why local, organic food costs what it does . . . $1.25/lb or otherwise. So here is a summary of some of the factors:

Wages: In B.C., many farm workers are paid the agricultural minimum wage of $8/hour. Pretty lousy. At the same time, B.C. growers are competing against imports from places where people are paid between $4 and $8/day. Keep in mind that in the US, most farm workers are illegal migrants working under the table for far less than minimum wage. Even in B.C., in 2008 a judge noted the exploitation in B.C.'s fruit and vegetable industry.

For any operation, labour is generally the greatest expense. Try competing against someone who doesn't pay their employees. Add to that, on our farm we reject the minimum wage. Our apprentices earn $10/hour plus accommodations and food; our long-time, permanent workers are paid $13/hour plus a profit-share bonus at the end of the season. Still not great, but this factors into the prices we set.

Labour: In addition to the cost of wages, organic growing requires a significant amount of labour compared to conventional growing. All of our planting, weeding and harvesting is done by hand. Weeding alone is a full-time job for many of us throughout the summer. This is an even greater factor for our farm because we use very little plastic mulch for weed control.

Land: Anyone trying to pay a mortgage in BC knows about the cost of land. Trying to earn a living from farming while paying a mortgage is borderline insane. This is one area where our farm has an advantage; the land is co-operatively owned and leased to us at affordable rates.

Scale: Most of the farms you find at the farmers markets are there because it's one of the few places they can get the price they need to cover their costs. They are small-scale farms. Because of their small scale, they are able to employ more sustainable practices (e.g. hand weeding instead of disposable plastic mulch). By comparison, many large farms depend on volume to make money. If they sell at low prices to wholesalers, earning one or two dollars for each case, they'll make their money by selling a lot. Small producers can't do this, but they can compete on the basis of quality: many people will pay to have fresh and excellent-tasting produce.

Industry pressure . . . or lack thereof: There is huge pressure on farms to sell to distributors for prices that are sometimes less than the cost of production. In the summer when Americans are on holidays and crops are plentiful, Californian farms dump product at low prices. Local farms are then forced to sell cheap or let the food rot. Keep in mind that supermarkets generally lose money on fresh produce -- it's a loss leader -- instead earning their profit from the less-healthy packaged food. The appearance of abundance in the produce aisle has many costs -- wasted food, labour exploitation and dangerous agricultural practices that feed a system with cheap food. One alternative is the farmers market, where a farm can set a price that reflects the cost of production and justify the price to the end consumer.

Opportunity and capacity: I would be naive to state that some farms don't take advantage of the ability to set their own prices at the farmers markets. I have been shocked to see the prices on some produce. In some instances there has been little challenge because there haven't been other farmers. Having said that, this season has been a good example of what farmers markets are cultivating: competition.

There are few places where the primary producers line up, lay out their products and set their own prices, all in direct line of the end consumer's questions and queries. It's somewhat of an ideal form of capitalism. This year, there were many new farms at the markets. Some are existing farms who have figured out that the markets provide a better return on their products. Many, however, are new farmers -- the result of capacity building within the sector over the past few years to get more young farmers into the fields. The end result: Vancouver markets featured local, organic, non-greenhouse (i.e. tasty) tomatoes (normally a high-value crop) for well under $2/lb, and even lower when buying in bulk.

Out of reach?

With all of this in mind, it is fair to note that there are many people who can't afford to buy fresh produce at all. There are more people who can't afford to buy organic produce. And there are many more people who choose not to buy organic produce as a personal choice. None of this makes anyone better than anyone else. Rather, it's a distraction from larger issues.

CutMelons

Affordable food is everyone's responsibility. These melons are worth every cent. Photo: C. Bodnar.

As a farmer, I want everyone to be able to access the food I grow. At the same time, I refuse to allow myself or my employees to live in poverty so that someone else can have cheap food. We live in a society with such abundance that there is little reason for people to go hungry. The inequality that results in hunger is a societal problem -- it's not the farmer's fault. Rather, it's all of our fault and all of our responsibility.

Anyway, we think a lot about the price of food on our farm and what makes for fair compensation to the people who grow the food, the cost of environmental stewardship and value for those purchasing the food. There aren't easy answers, but these are important discussions to have.

As for the watermelons, we had a great harvest this evening. The screaming stopped and my daughters feasted on a late-September treat after dinner. Actually, it was their dinner. Knowing what came next, they refused to eat anything else.

We'll have melons at our markets this week. They might cost a bit more and it might seem late in the season, but at a time when peaches are finished and cherries are but a distant memory these melons will blow you away.  [Tyee]

19  Comments:

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  • G West

    1 year ago

    Couldn't agree more Christopher

    "We live in a society with such abundance that there is little reason for people to go hungry. The inequality that results in hunger is a societal problem -- it's not the farmer's fault. Rather, it's all of our fault and all of our responsibility"

    Sadly, when you have the kind of government we have in Victoria and Ottawa, there is a 'problem' addressing the societal issues of hunger, homelessness and low wages.

    As long as we have governments led by people who think tax cuts are more important vehicles for 'choice' than 'choosing' to address those issues you're going to have a 'problem' making a living wage selling your produce at a fair price.

    The proportion of the population with the wherewithal to purchase your food is going to get smaller and the number of farmers willing and able to behave ethically and morally as producers is going to become more and more endangered.

    You're right about all of us being in this together...but the people who are not making the decisions aren't in on the solution.

    Good luck!

  • warbler

    1 year ago

    Tax shifting needed

    The solution has always been there, but few, other than the Green Party, have offered a serious platform positions.

    Via taxation, make it more expensive to produce non-organic factory/corporate farm produce, while offering tax incentives and subsidies to those in our local agriculture community who choose to do it the right, sustainable way. By doing this, you will entice more farmers into doing it the good way, resulting in more supply, more competition, prices come down. Everybody eats better produce.

    I buy organic/local as a general rule, but only because I can afford to. I know many who can't and would like to. Unfortunately, local organic produce is still considered a luxury of the petite bourgeoisie. We need to make this less a luxury for the few and accessible to all.

  • realisticman

    1 year ago

    We buy them

    Especially with the tax cut that the government has brought in. Now we are able to keep more of the money we work so hard to earn, so that means that if we buy local well produced food and it costs more, we don't mind. We are happy to support our local farmers even if we do spend more. We understand that bulk buying of anything makes things cheaper but we feel that the local produce is better for us to eat and it tastes better too.

    The more taxes are reduced, the more of our earnings are not swallowed by the government and the more locally produced foods and clothing we will buy.

    The added expense is like a voluntary tax that we don't mind paying.

  • warbler

    1 year ago

    You buy them!

    Realisticman, you are living proof that Adam Smith's invisible hand is going to hand-feed us fresh, organic, locally produced farm goods if we just, darnit all, lower income taxes! God bless you, brother!

    Ah yes, let us recall how the trickle down theory allowed Americans to reap a bounty of fresh local produce under Reaganomics during the 80's! And how the Brits spent all their windfall extra tax break income on organics during Maggie's reign! Under Bush #1, organics and local farming in America flourished, and under Bush #2 the evil factory/corporate farms were once and for all made obsolete (don't believe anything those pot smoking socialists at Farm Aid say) because of... "read my lips"... all that extra income due to tax cuts!

    Here in BC, of course, agriculture went from have-not under the NDP to local/organic agriculture Utopia, thanks to all those Liberal tax cuts that put extra bills in our pocket, with which we rushed off to the local farmers market to buy local!

    Seriously, if we let the market feed us, we'd all starve, or die from an malnutrition.

  • khed67

    1 year ago

    unrealisticman

    Here we go again, r-man. You buy into the neo-con myths. Most reading on this site don't.

    You think tax revenues are squandered by incompetent governments, while I think private providers of the same services will value their shareholders over their clients. Blah, blah, blah.

    Where has privatization resulted in better services for lower costs?

    Back to the actual topic of this article: I think that the people who can least afford to buy expensive produce are those in the lowest tax brackets. That is, the people who benefit least from tax cuts and the corresponding erosion of public services.

    And I don't see how Gordo's Hail Mary tax cut will lead to more people supporting local farmers. More likely those extra dollars will be put towards increases in health care costs (BC Med?), transportation costs, education costs, etc.

  • khed67

    1 year ago

    Japanese Melons

    I'm presently living in Japan, and I really get annoyed by writers misleading their readers on the expense of melons here.

    When I want to eat watermelon, I go to any local supermarket and buy a nice one for between $5 and $10. Or I buy portions for considerably less. I got a good-sized quarter-melon for about $2 during the summer. And unlike Safeway watermelons back home, they are always sweet and delicious.

    Yes, you can find a $200 melon if you go the right stores (or buy a $6,000 one if you bring enough cash to a special auction). But those are not for everyday consumption. They are normally used as gifts, they are packaged and presented immaculately, and most people I know have never bought or received one.

    The linked msnbc article even states that the purchaser of the crazy $6000 melon in 2008 did so "because he wanted to support local agriculture." I imagine he could have paid a lot less.

    Personally, I'd suggest removing that one paragraph from an otherwise useful article.

  • realisticman

    1 year ago

    warbler

    As the facts and stats tell us, you are right. People are always complaining about how government, through our taxes, subsidizes the nasty oil companies, etc.

    With lower taxes we can now disperse these funds as we wish. We seem to be doing just that, buying up gobs (sorry) of whole-grain protein-rich stuff and big helpings of organic carrots etc. and altogether having a bellyful of fun.

    Here's Bob of the BC Association of Farmers' Markets, talking about significant expansion during the recent years under the BC Liberals.

    Local Flavours, Familiar Faces!
    "Vice-President: Bob Callioux

    The market in this location (Kelowna) started with 4 vendors; it took three years for the market to be noticed and customers started to shop on a regular basis. He wore all the organizational hats: president, manager, secretary, etc. Bob did what was needed to get the market going; "I juggled 3 jobs until the new market organization was able to hire me as a part time manager."

    He had determination and dedication to the Kelowna Farmers' and Crafters' Market. There are approximately 120 registered season vendors and roughly 175 day vendors filling all the 165 stalls that are available on the site. "We get over 5000 people shopping in the height of the season, last year we added a Thursday evening market in downtown Kelowna.""

    http://www.bcfarmersmarket.org/directors.htm

    Further. With help of the income tax cutting federal Conservatives and Stephen Harper:

    "Subject: Growing Farmers' Market Economic Impact - BC Farmers
    From: BC Association of Farmers' Markets
    Date: Fri, 24 Apr 2009

    Growing Farmers’ Market Economic Impact
    BC Farmers’ Markets - A Sleeping Giant

    Vancouver, BC – With $800,000 funding offered by the federal government through Western Economic Diversification (WED) for a proposal submitted by the BC Association of Farmers’ Markets (BCAFM), there is a valuable opportunity to increase the economic impact of BC farmers markets by over $90 million over the next three years.

    ... Launching the nationally recognized and successful BC Farmers Markets Nutrition and Coupon Program (funded through the Ministry of Employment and Income Assistance), benefiting hundreds of low-income families, farmers and markets across the province and improving the health of hundreds of people.
    Over the past nine years, the number of farmers markets in BC has increased from 60 to over 100. Today’s farmers’ markets will become the supermarkets of tomorrow! ..."

    http://www.lillooetchamberofcommerce.com/news/bc-farmers.html

    Something to get your teeth into, eh?

    This creates a suitable background to listen to while reading these bountiful stories.

    http://www.youtube.com/watch?v=FjiV8et8C34

  • realisticman

    1 year ago

    khed67

    "Where has privatization resulted in better services for lower costs? "

    For just one, check out the cost of airfare when the airlines you fly on were owned by governments. Air Canada now has round trips from YVR to Tokyo for around a $1,000.00.

    Deregulation and private competition has made flying much cheaper than it ever was.

    Want to talk about government run telephone companies around the world? We wouldn't have VOIP and Skype if the governments still had their iron grip on telecommunications. NTT had this grip until not long ago.

    Have you yet met any gaijin that nip over to Bangkok for a quick cheap world-class medical procedure?

  • VivianLea Doubt

    1 year ago

    here in the Valley...

    we don't wear Lulu Lemon, we wear MooMoo Melon...and yes, we have melon bags. Just thought you might like to know Christopher!

    Flying, just like mass-produced food, has become tasteless and generic: could there be any surprise that the race to be the cheapest could produce anything else? And just as in everything else, most of us in this country could do with less, of a higher quality...and given obesity figures, it is likely true for food.Thank you for acknowledging the wage issue, and for paying wages that at least rise above the grimmest bottom. I think one would be nourished, in the broadest sense of that word, by buying perfect melons, and helping to nourish others as well.Purchasing local from local businesses that respect and value their employees is a profoundly political act: one that requires only the action of an individual and one that will help remake the world.

  • G West

    1 year ago

    Air fare

    Yep! - pretty cheap and VERY DIRTY...we should be paying the ACTUAL cost of air travel and not the artifically low one based upon the subsidized 'price' of oil...

    As for the 'success' of small organic farmers - they manage, in my community, to survive because there are a lot of fairly well off folks who patronize them; young people, with families, simply can't afford the luxury - they're shopping at Wal mart for dreck at the lowest possible price.

    That's the world you've given them realisticman.

    Sad.

  • realisticman

    1 year ago

    Oh yeah?

    When I was living hand to mouth I bought more expensive organic produce.

    You told us that you and Carole James shop at Thrifty/Sobeys. We think you might be the more likely cause.

  • RickW

    1 year ago

    R/M old man....

    Quote:
    The more taxes are reduced, the more of our earnings are not swallowed by the government and the more locally produced foods and clothing we will buy

    Uh, the actual cash in pocket doesn't happen until 2012, at least from the latest "tax reduction". And don't forget to factor in those inevitable "service fee" increases that kind of renders the notion of discretionary cash laughable.

    Oh, and don't forget the continuing job losses in BC and TROC:
    http://www.cbc.ca/money/story/2010/08/06/canada-job-employment.html
    Those on that end of the stick won't be flying off to Japan - or anywhere else.

  • realisticman

    1 year ago

    Rick

    Remember?

    "Shortly after coming to power in June 2001, Campbell implemented major tax cuts on both personal and corporate income and scheduled additional cuts thereafter. Specifically, in his first budget (2001), Premier Campbell enacted a 25-per-cent across-the-board reduction in personal income tax rates, followed by more cuts in 2007 and 2008. The result was a significant improvement in incentives for British Columbians to work, save, invest, and be entrepreneurial.

    Read more: http://www.vancouversun.com/opinion/Premier+Campbell+popularity+doesn+match+performance/3726205/story.html#ixzz152vC5OVH"

    Read your link.

    "British Columbia gained 16,000, "

    The Japan comment was for @khed67 who's, "presently living in Japan "

  • RickW

    1 year ago

    R/M old man....PS as it were

    Hmmmm.....my chiropractic fees used to be $10/visit. Now it runs to $50/visit. So much for "...to work, save, invest, and be entrepreneurial."

    Or are you saying that such treatments are superfluous, and the "quacks" should be run out of town on a rail - so that, even if I cannot get out of bed in the morning, I can never the less "work, save, invest, and be entrepreneurial"?

  • realisticman

    1 year ago

    Skywalker

    You have our commiserations if you are in pain. Although the chiropractic profession is primarily based on the use of the spinal adjustment, many other techniques exist for treating the spine, as well as other joints and tissues. A modern chiropractor may specialize in spinal adjustments only, or may use a wide range of methods intended to address an array of neuromusculoskeletal and general health issues. Examples include soft tissue therapy, strength training, dry needling (similar to acupuncture), functional electrical stimulation, traction, and nutritional recommendations.

    Claims made for the benefits of spinal adjustments range from temporary, palliative (pain relieving) effects to long term wellness and preventive care. Some claims are controversial, particularly with regard to indications and health benefits. There is debate concerning the safety of some of the procedures used in spinal adjustments, particularly those including upper cervical manipulations.

    M.S.P. provides partial coverage for chiropractic fees for persons based on earnings. Only those MSP beneficiaries with premium assistance status qualify for MSP coverage including treatment of spine and related conditions by chiropractic doctors. Please consult your family chiropractor for your coverage details.

  • realisticman

    1 year ago

    RickW

    That was, of course, for you, not our dear friend Skywalker.

  • RickW

    1 year ago

    R/M old man....

    Great cut 'n' paste!

    But it doesn't address the fact that, while taxes (allegedly - just 'cause a government TELLS you they do, don't make it so) dropped, service fees increased, thus removing the word "choices" from the lexicon describing Campbell's beneficence.

  • G West

    1 year ago

    @R/man

    Another fine piece of plagiarism.

    Nice. You should be proud.

  • realisticman

    1 year ago

    A Nice Squeeze

    @west

    Do you buy your local Happy juices at your local Thrifty Foods?

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