Wednesday, May 23, 2012

Market forces

Remember the Bristol riots over a Tesco shop? Several police were injured and there were a number of arrests as the so called protesters had threatened to firebomb the Tesco store in their protest over globalisation. Eventually they set up a co-operative to offer an alternative by selling organically grown, local, fairly-traded food available to people on a low income in the area.
BBC.
A community supermarket set up to serve the Stokes Croft area of Bristol as an alternative to Tesco is winding up.
The aim was to make organically grown, local, fairly-traded food available to people on a low income in the area.
It began trading after riots in April 2011 when police raided a squat on Cheltenham Road over fears the nearby Tesco would be petrol-bombed.
A statement from the store said it could not compete with chain store prices and needed new leadership.
There are several reasons why organic produce is more expensive than factory style farming, the main one being that it's totally inefficient. crop levels tend to be at least a quarter of standard farming methods for pretty much the same cost outlay. Hence unless you're growing your own in your own time and at your own cost, you simply can't compete. Sure some people are prepared to pay more because it tastes better, but those aren't the ones this community supermarket were aiming at. They wanted to supply to people on a low income in the area.
People on a low income tend not to have great diets, because they have to budget carefully, that means they opt for own brand buy one get one free special offers. You sell organically grown carrots for £1 a kilo, and Tesco sell them for 50p. Guess where the low income family will go.
As the saying goes, you can't buck the market, this is a classic example of why. What people on a low income want is cheap, organic isn't cheap, it simply can't compete in the same market as Tesco's.

3 annotations:

Curmudgeon said...

Ah yes, more people who think the poor should be made to pay more for their food. This says it all, really, about their understanding of business:

"Earlier this year the group behind the store joined forces with New Dawn Traders, which is setting sail to the Caribbean in a 100-year-old boat. The plan was to bring back goods for the People's Supermarket to sell at a market stall in Bristol this summer."

banned said...

Slightly off topic; a local village recently lost its shop; the great and the good stepped in to provide a 'community shop' ~(incl Post Office) staffed by volunteers sellig the usual Fair Trade stuff but many local yokels still bus it to the big store cash'n'carry.
Why so? The 'community store' sells fine wine and merry ales but not strong lager or cheap vodka, nor tobacco come to that.

James Higham said...

People on a low income tend not to have great diets, because they have to budget carefully, that means they opt for own brand buy one get one free special offers.

Or buy pastrami deals at ridiculous prices.