As people from Haiti to Ethiopia are tragically struggling to cope with rising food prices, many are piecing together the reasons behind our recent price spikes. The culprits lie in everything from the switch to growing crops for biofuels to market speculation. The situation is complex and involves multiple factors. But as economists tally up the numbers and politicians scramble for solutions, others are beginning to wonder if this is the end for organic food as we know it. For years, the organic industry has seen sales growth in the double digits, far outpacing any other sector of food products. Articles have been popping up to question the feasibility of anyone of moderate means buying organic. It seems like the unfortunate and untrue “elitist” stamp might be making a comeback.

These assumptions miss one of the most important points of rising food prices — oil. Whether the food crisis is the result of biofuels pushing out agricultural land or investment speculation, it has proven one thing to be clear — as oil prices rise, food prices rise. We may not think about it very much, but our conventional food system is unfortunately based on fossil fuels, and we must face the reality that oil is not a renewable resource. With increasing fuel prices come increasing food prices, unless we change the way we farm.

On the organic front, fortunately the naysayers were wrong. Organic food growth has not taken the nose dive that some thought it would; in fact, it’s still thriving. A report out yesterday estimates that 2008 sales of natural and organic food and beverages will continue at a double-digit growth rate to reach $32.9 billion. For the period of 2005 to 2008, organic and natural food products grew 67.6 percent with a compounded annual growth rate of 18.8 percent. While these 2008 figures may not be as high as some of the amazing spikes in organic growth from a few years ago (often in the 20 percent range), they are clearly still higher than any other food sector. What does this demonstrate? That increasingly, despite economic costs or difficulties, consumers are willing to pay more for products grown without synthetic fertilizers, pesticides, GMOs, growth hormones, or sewage sludge.

Full Story: http://gristmill.grist.org/story/2008/9/10/19490/7183?source=daily