Should people eat only locally produced, organic food?

No

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by Barry Marcus

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If everyone had to eat only locally produced food there would be little scope for economic growth. Most of us would be surviving on subsistence farming. Growth occurs as the result of trade. Each region, each country produces what it does best. Local farmers are able to export surplus produce and in some cases achieve higher prices than would be possible at home. By the same token, other products may be available at a lower price from other countries. This is a win-win situation.

Most people agree that organically produced food tastes better than food with high levels of chemical inputs. Organically produced food has gained tremendously in both popularity and availability over the past decade. Unfortunately, organic food is not produced in sufficient quantities to allow everyone to exclude all other foods from their diet. Organic food still carries a heftier price tag than non-organic food. Many people have managed to thrive and remain perfectly healthy without ever having eaten organic produce.

The World Trade Organisation (WTO) has been striving for many years to increase the level of free trade around the world. Protectionism may seem to protect local agriculture and other producers, but in fact may harm those that it seeks to protect. When a country provides protectionist policies, other countries follow suit. Exports fall. Each country has to rely almost exclusively on its own products, some of which may be produced in a very uncompetitive environment. Protectionism is usually achieved by applying tariffs to imported products. The tariffs make imported goods very expensive and local uncompetitive products have a better chance of being bought.

Some countries apply huge subsidies to their local agricultural sector. The subsidies have a similar effect as tariffs. Uncompetitive farming and manufacturing becomes viable and imports become undesirable. Overproduction is common and governments often pay for produce that goes to waste.

Free trade amongst nations enables everyone to enjoy the best of each country at the best prices possible. Protectionism carried to an extreme could mean shortages of some products and shortages of others. Climates vary from one country to another.

One scenario provides a graphic illustration of some of the issues when only local food is consumed. Britain is not suited to growing grapes, bananas, oranges or papayas. With misplaced patriotism, missions of Britons decide to eat only locally produced food. The give up the option to eat these wonderful fruits. The countries that produce these fruits and export them to Britain lose a lucrative market. They reduce production of these products in line with the lower demand. Job losses result, and the fruit growing countries face a contracting economy. Imports from Britain decrease. British industry is negatively impacted by lower exports resulting in job losses there.

While it is always desirable for everyone to eat healthy organic food this may not always be a viable option. To eat only locally produced organic food places huge constraints on what you are able to eat - especially if you live in a country that is not a major producer of food. The attempt to protect local jobs by only buying local goods is misguided and may lead to a lowering of local production as illustrated in the example provided above. A thriving economy depends on free and open trade around the world, a dream that has still not been fully achieved. Buy local only policies hamper economic growth and mayadversely affect the local job market.

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