organic food - full paper

8/8/2019 Organic Food - Full Paper

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Title of the paper: Organic Food: Emerging Green Business Strategy in the Organized

Markets

Brief profile of the Authors

1. Dr. Biswajit DasM.A. (Eng), M.B.A., LL.B., M.A. (Pub. Admn.), Ph.D. (Mgmt) Utkal

Associate Professor, Chairperson Doctoral ProgrammeKIIT School of ManagementKIIT UniversityBhubaneswar, OrissaPhone 09438064555Email [email protected]

Career Highlight:

Dr. Das is continuing his D.Litt. on Sustainable Real Estate Market. He has 25 years of

experience in academia, industry and government. Besides he is Chairperson- MarketingManagement Area, Member - Academic Council-KIIT-University, Member-Board ofManagement-KIIT-U. Prof. Das has been instrumental in the institution building processof KSOM since its inception. He has authored international research paper and bookslike, Real Estate Market and Business communication and Personality Development.

2. Dr. Ipseeta SatapathyMA (Pub. Admn.), MA (Pol. Sc.), M. Phil. (JNU, New Delhi), Ph. D. (Utkal), D.Litt. (Utkal)

Associate ProfessorKIIT School of ManagementKIIT University

Bhubaneswar, OrissaPhone [email protected]

Career Highlight:

Dr. Satapathy has over 10 years of experience in teaching and administration in KIITUniversity. She has worked as Assistant Registrar (academics) KIIT University, DeanCommunication KIIT University. Prof. Satapathy has authored books like "EnvironmentManagement" &"Business Communication & Personality Development" and has also

published several international research papers. Dr .Satapathy is actively involved inManagement Development Programmes.

3. Ansuman JenaB.Sc. MBA, Ph. D. (Cont.)

LecturerDepartment of Business AdministrationDhenkanal Autonomous College, DhenkanalPh. D. (Cont.)KIIT School of ManagementKIIT University, BhubaneswarPhone 09040209907

Email [email protected]


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Career Highlight:

Mr. Jena has over 3 years of experience in business development, sales, marketing andrelationship management in the top notch corporate. He is into teaching since 2009 andcontinuing his Ph. D. research in KIIT University. He has an excellent academic career.He has presented a paper on Business Ethics and Corporate Governance at the 30 th

Annual Conference of Orissa Commerce Association, Organized at PG Department ofCommerce of Ravenshaw University, Cuttack in 2009. He believes in KIZEN principleand his attitude towards excellence always helps him stand out of crowd. He has awardedwith many prizes and awards from academia and industry.

4. Debadutta Das

M.Sc., MBA, Ph. D (Conti.)Research ScholarFakir Mohan UniversityBalasore, Orissa

Phone 09861163497Email [email protected]

Career Highlight:

Mr. Das has more than 13 years of academic experience. He has attended many positionsin his professional career. He has published many articles and presented a number ofresearch papers at national and international forum. His philosophy of life is learn toearn, earn to live and live to serve.

5. Mangalika MohapatraM.Sc. & M.Ed. (Life Sc.) Utkal, M.Phill, Ph.D. (Conti.)

Research ScholarUtkal UniversityBhubaneswar, OrissaPhone 094386199Email [email protected]

Career Highlight: Mrs. Mohapatra has outstanding academic accomplishments. She isdoing her research work in Utkal University, Vanivihar, Bhubaneswar. Her area ofinterest is Environment Management.

To whom so ever it may concernThis is to certify that the research article titled Organic Food: Emerging Green Business

Strategy in the Organized Markets is an original and authentic research work done by Dr.

Biswajit Das, Dr. Ipseeta Satapathy, Mr. Ansuman Jena, Mr. Debadutta Das and Mrs.

Mangalika Mohapatra. It embodies the result of their original contribution and the same has

neither been published nor submitted for publication elsewhere.


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Organic Food: Emerging Green Business Strategy in the Organized Markets

Abstract

Green food is important for a healthy life. Organic food supplement through farming has

been becoming a key to the health conscious people. India is fast changing and emerging as a

hub for organized farming.

Today cultivable land is being rampantly abused by synthetic fertilizers; discharging toxic

elements; even contaminating water table. The shrinking quality has been slowly poisoning

crops. It consequently inflicts obesity, diabetes, high blood pressure and cardiac diseases etc.

Commodity market is a market for daily consumption. Prices are associated with demand for

non-toxic products. Bio-fertilizers are being substituted with the pesticides; to identify a

segment in the marketplaces; entering through shopping malls. Even vegetables and fruits are

created with brands for target customers. Health regime has realized the ill effect of synthetic

fertilizers. Hybrid products and patents have become a debate for countries to accept the

dictates of WTO. Promoting organic farming and popularizing organic food products among

the farmers and consumers through awareness campaigns, effective branding and marketing

activity are in the fore.

This research article shall analyze, interpret and insight in to the new emerging market

segment in the food category; which shall transcend the borders of countries in to the global

village accepted as mega brands in the meta-markets. It shall provide detailed introspection in

to the status of organic farming in India and abroad. The future of the market shall affect the

life of billions of people worldwide.

Key words

Organic Food, New Brands, Shopping Malls, Emerging Markets, Green Economy and

Business Strategy

Introduction

Synthetic pesticide driven cultivation and depleted soil conditions have harmed the

nutritional value of the food produced. It has gone up substantially during

the recent years. During the last 60 years the nutritional value in most of the food has

approximately down by 25% of what it originally was in 1950s. The unfortunate part is that,

there are no standards set up as yet, to certify the actual nutritional value of groceries offered

for the guidance of consumers.

This shortage of essential nutrition in the food has resulted in a growing number of

chronic ailments like high blood pressure, high cholesterol, diabetes and


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all kinds of cardiovascular diseases, to name a few, which plague modern

society today.

To combat this menace; the educated class of people, whom health is more valuable, there is

a growing rise in the use of dietary supplements like vitamins and minerals in the form of

easy to swallow tablets or capsules. Many imported multi-vitamin and mineral supplements

are now available in regular medicine stores around the corner.

Synthetic chemicals and organic food

Modern man has invented more than 10 million new chemicals; thousands of which are

added to our food products. Therefore organic food culture is becoming a practice in the field

of dieting. This has revolutionized a preferential dieting phenomenon in many. It has also

attacked the junk food eaters. Junk food eaters are also imbibing consciousness for organic

food items. Contemporary first paced society of the globe is heading towards a dead alley of

chemically treated food products (Food Standards Agency, 2003).

The early phases of agriculture revolution were bereft of pesticides and manures; which are

rampantly prevalent now. It has eventually made the soil toxic, poisonous and barren. Though

fertility of the soil is enhanced by virtue of artificial manure; it is infusing chemicals into the

body constituent of the soil. It makes the water, food and air etc. filled with toxic substances,

which are packed as edibles; though being junk. Soil condition give vent to artificial

germination of plants; and give birth to inorganic blends of fruits, vegetables, paddy, gram

and other food produce which becoming dangerous for intake in the body (Murray, 1991).

Mass productivity world wide

Countries worldwide have adhered to the formula of mass productivity of using chemical

pesticides; at the cost of good health. Reduction of agriculture land in many of the countries

has come up with multiple cropping and un-seasonal productivity unnaturally cultivated.

These are fed to the teeming millions of the country who require food. Eat a diet rich in

organic food and take nutritional supplements is important (FAO/WHO, 1994) has been

forgotten.

However organic food consumption in India is on the rise now. People believe

that organic food is a concept popular in developed countries. When it comes

to organic food, India exports organic food and consumes a little. 50% of

the organic food production in India is targeted towards exports.

ACNielsens survey of about 21,000 regular Internet users in 38 countries revealed that; India

was among the top ten countries where health food, including organic food, was demanded.

The most important reason for buying organic food was the concern for health of children.


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Over 66 percent parents preferring organic food to non organic food. Though organic food is

priced 25 percent more than conventional food in India, many parents are willing to pay the

premium due to the perceived health benefits of organic food.

The increase in organic food consumption in India is evident from the fact that

many organic food stores are spurring up in India. Almost every supermarket has an organic

food store and every large city in India has numerous organic food stores. The first organic

food store in Mumbai was started in 1997 and is a pioneer.

The pattern of organic food consumption in India is different than the developed countries.

Here consumers prefer organic marmalade, organic strawberry, organic tea, organic

honey, organic cashew, butter and various organic flours. There are many consumers who are

unaware of the difference between natural and organic food. Many people purchase products

labeled as natural, thinking that they are organic. Consumers are also unaware of the

certification system; since certification is not compulsory for domestic retail in India. Many

fake organic products are available in the markets all around.

Definition of Organic farming and key benefits

In 1939, Lord Northbourne coined the term organic farmingin his book Look to the Land.

It describes the holistic, ecologically-balanced approach to farmingin contrast to what he

called chemical farming. In simple words, Organic foods are those foods that are produced,

processed and packaged without using chemicals. They are been accepted for their

perceived health benefits over conventional food. Organic farming sector is growing rapidly

and has caught the attention of farmers, manufacturers and above all consumer kings. Some

of the popular organic food items include organic tea, organic coffee, organic wine, organic

milk, organic honey, organic vegetables, organic fruits, organic rice, organic corn, organic

herbs, organic essential oils, organic coconut oil and organic olive oil.

Organic foods protect from heart disease and cancer, as they contain Phenolic compounds.

Organic food is natural, fresh and tasty too. Many people prefer to grow organic food in their

home gardens, because it costs about 20% more than the conventional food. Organic

gardening uses organic seeds, organic fertilizers, compost, organic root stimulators, and

organic pest control.

Key advantages of Organic food

Few identified salient points which are key to the use of organic food are given as under.

Organically grown foods are natural and without any chemicals.

Organically grown foods are nutritious and full of taste although they may not look as

shiny, colorful and well presented as shop produce.
http://en.wikipedia.org/wiki/Walter_James,_4th_Baron_Northbournehttp://en.wikipedia.org/wiki/Walter_James,_4th_Baron_Northbourne


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Organic foods put fewer burdens on environment.

Growing foods organically can protect the topsoil from erosion and is a great way of

getting closer to nature.

Under organic production, use of conventional non-organic pesticides, insecticides and

herbicides is greatly restricted. Organic food production is a heavily regulated industry.

Currently the European Union, the United States, Canada, Japan and many other countries

require producers to obtain special certification in order to market food as "organic". Most

certifications allow some chemicals and pesticides to be used.

Historically, organic farms have been relatively small family-run operations, which is why

organic food was once only available in small stores or farmers' markets.However, since the

early 1990s organic food production has had growth rates of around 20% a year, far ahead of

the rest of the food industry, in both developed and developing nations.

Foods claiming to be organic must be free of artificial food additives, and are often processed

with fewer artificial methods, materials and conditions, such as chemical ripening, food

irradiation and genetically modified ingredients. Pesticides are allowed so long as they are

not synthetic.

Country specific legal parameters

To be certified as organic, products must be grown and manufactured in a manner that

adheres to standards set by the country they are sold in. Some of them are:

Australia: Australian Organic Standard and NASAA Organic Standard

Canada: Canada Gazette, Government of Canada

European Union: EU-Eco-regulation

Sweden: KRAV

United Kingdom: Department for Environment, Food and Rural Affairs (DEFRA)

Norway: Debio Organic certification

India: NPOP, (National Program for Organic Production)

Japan: JAS Standards

United States: National Organic Program (NOP) Standards

The United Nations norms

Advanced countries like US, UK and Japan have ensured the use of bio-fertilizer to reduce

the toxic content of the food produce by virtue of certain rules enforced by the Government.

United Nations in its GATE & GATT norms; it has stipulated the permeable limit of

pesticides for international use by the population. To manage the shortfall and striking a


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balance in the economies of scale (Keegan, 2006) countries have adopted the regulations in

their own spirit.

But in the transitional economies and developing economies, leaving apart the basket cases, it

is seen that reckless manuring of agriculture lands for substantial productivity has poisoned

the soil to the extent of 1700 per cent; which it self is detrimental to health living. Yet our

human body is able to absorb the toxic food produce and maintain the metabolism for a living

condition.

To maintain the sanctity, World Health Organization (WHO) has issued an International Code

of Marketing of Food Products to check the relentless negligence. WHO and the United

Nations Childrens Fund (UNICEF) released a joint statement on the Ten Steps to Successful

Breastfeeding of mothers.

Some facts and market statistics

While organic food accounts for 12% of total food sales worldwide, the organic food market

is growing rapidly, far ahead of the rest of the food industry, in both developed and

developing nations. World organic food sales jumped from US $23 billion in 2002 to $52

billion in 2008. The world organic market has been growing by 20% a year since the early

1990s, with future growth estimates ranging from 10%50% annually depending on the

country. Some country specific information is highlighted below.

United States

Organic food sales have grown by 17 to 20 percent a year for the past few years while sales

of conventional food have grown at only about 2 to 3 percent a year. In 2003 organic

products were available in nearly 20,000 natural food stores and 73% of conventional grocery

stores. Organic products account for 2.6% of total food sales in the year 2005. Two thirds

of organic milk, cream, half of organic cheese and yogurt are sold through conventional

supermarkets.

Canada

Organic food sales surpassed $1 billion in 2006, accounting for 0.9% of food sales in Canada.

Organic food sales by grocery stores were 28% higher in 2006 than in 2005. British

Columbians account for 13% of the Canadian population, but purchased 26% of the organic

food sold in Canada in 2006.

Europe

In the European Union (EU25) 3.9% of the total utilized agricultural area is used for organic

production. The countries with the highest proportion of organic land are Austria (11%) and


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Italy (8.4), followed by Czech Republic and Greece (both 7.2%). The lowest figures are

shown for Malta (0.1%), Poland (0.6%) and Ireland (0.8%).

Austria

11.6% of all farmers produced organically in 2007. The government has created incentives to

increase the figure to 20% by 2010. 4.9% of all food products sold in Austrian supermarkets

(including discount stores) in 2006 were organic. 8000 different organic products were

available in the same year.

Italy

Since 2000 use of some organic food is compulsory in Italian schools and hospitals. Since

2005 all school lunches in Emilia Romagna must be organic by law.

Poland

In 2005; 168,000 ha of land were under organic management. 7 percent of Polish consumers

buy food that was produced according to the EU-Eco-regulation. The value of the organic

market is estimated at 50 million Euros (2006).

UK

Organic food sales increased from just over 100 million in 1993/94 to 1.21 billion in 2004

(an 11% increase on 2003).

Indian organic food market

Organic farming is an old concept in India. Extensive farming is carried out in the country.

The organic food market is worth USD 129.3 million and shows huge potential for growth in

future. The analysis of the drivers explains huge exports, organized retail distribution

network, government initiatives and increasing health consciousness among consumers.

However the key challenges identified encompass high prices of organic food, lack of

integrated supply chain and difficulties for farmers, certification barriers.

Cryptic entry into households

Organic food products are slowly but steadily finding their way in the average Indian

household. It is indicative of the rising health-consciousness among the Indian consumers.

Rs. 5.6 billion in 2008, the organic food market is gradually witnessing the shift from being

an elitist to a health product. Although production and consumption figures in India are way

behind the world average, the market is now showing signs of consistent growth. As of now,

price continues to be the major deterrent. It is gradually being outweighed by factors such as

nutrition, taste, quality and better environment.

Eventually the market for organic food products has largely been characterized by inadequate

retail presence, absence of certified brands, incomplete range, higher price and highly export-


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oriented government policies. Notwithstanding these shortfalls, retailers are optimistic about

the future benefits. India will take long time to catch up with the global growth rate of 20-

30% annually.

This is because most producers are either small or marginal farmers, small cooperatives or

trade fair companies. They are scattered across the country, offer incomplete product range

and are mostly local brand. In countries like US and Europe, every supermarket carries a

complete range of certified organic products. The need of the hour therefore is organized

retailing and marketing from the prevalent unorganized pattern.

Organic Farming in India

Organic farming was practiced in India since thousands of years. The great Indian civilization

thrived on organic farming and was one of the most prosperous countries in the world, till the

British ruled it.

In traditional India, the entire agriculture was practiced using organic techniques, where the

fertilizers, pesticides, etc., were obtained from plant and animal products. Organic farming

was the backbone of the Indian economy. Cow was worshipped as a God. The cow, not only

provided milk, but also provided bullocks for farming and dung was used as fertilizers.

Population, Natural calamity and Food scarcity

During 1950s, the increasing population of India and natural calamities lead to a severe food

scarcity in India. As a result, the government was forced to import food grains from foreign

countries. To increase food security, the government had to drastically increase the

production of food in India. The Green Revolution (under the leadership of M. S.

Swaminathan) became the governments most important program in the 1960s. Large amount

of land was brought under cultivation. Hybrid seeds were introduced. Natural and organic

fertilizers were replaced by chemical fertilizers and locally made pesticides were replaced by

chemical pesticides. Large chemical factories such as the Rashtriya Chemical Fertilizers were

established. Before the Green Revolution, it was feared that millions of poor Indians would

die of hunger in the mid 1970s. However, the Green Revolution, within a few years, showed

its impact. The country, which was greatly relied on imports for its food supply, reduced its

imports every passing year. In 1990s, India had surplus food grains and once again became

exporter of food grains.

Food security to chemical farming

Extensive dependence on chemical farming has shown its darker side. The land is losing its

fertility and demanding larger quantities of fertilizers to be used. Pests are becoming immune

requiring the farmers to use stronger and costlier pesticides. Due to increased cost of farming,


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farmers are falling into the trap of money lenders, who are exploiting them and forcing many

to commit suicide.

Shift to Organic farming

Both consumer and farmers are now gradually shifting back to organic farming. It is believed

by many that organic farming is healthier. Though the health benefits of organic food are yet

to be proved, consumers are willing to pay higher premium for the same. Many farmers in

India are shifting to organic farming due to the domestic and international demand for

organic food. Further stringent standards for non-organic food in European and US markets

have led to rejection of many Indian food consignments in the past. Organic farming,

therefore, provides a better alternative to chemical farming.

According to the International Fund for Agriculture and Development (IFAD), about 2.5

million hectares of land was under organic farming in India in 2004 and over 15,000 certified

organic farms in India. India therefore is one of the most important suppliers of organic food

to the developed nations. No doubt, the organic movement has again started in India.

Organic food exports from India are increasing with more farmers shifting to organic

farming. With the domestic consumption being low, the prime market for Indian organic food

industry lies in the US and Europe. India has now become a leading supplier of organic herbs,

organic spices, organic basmati rice, etc. In 2003, only 6-7% of the total agricultural produce

in India was exported.

Economy propelled business

The increasing demand for organic food products in the developed countries and the

extensive support by the Indian government coupled with its focus on agro-exports are the

drivers for the Indian organic food industry. This is a very high premium for most of the

Indian population where the per capita income is merely USD 800. Though the salaries in

India are increasing rapidly, the domestic market is not sufficient to consume the entire

organic food produced in the country. As a result, exports of organic food are the prime aim

of organic farmers as well as the government. The Indian government is committed towards

encouraging organic food production. It allocated Rs. 100 cores or USD 22.2 million during

the Tenth Five Year Plan for promoting sustainable agriculture in India.

Indian Government regulations

Agricultural and Processed Food Export Development Authority (APEDA) coordinates the

export of organic food and other food products in India. The National Programme for

Organic Production in India was initiated by the Ministry of Commerce. The programme

provides standard for the organic food industry in the country. These standards have been


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developed taking into consideration the international organic production standards like

CODEX and IFOAM. Indian organic food products are being accepted in the US and

European markets. APEDA also provides a list of organic food exporters in India for

exhibiting abroad for outsourcing markets.

Organic food production costs are higher in the developed countries as organic farming is

labor intensive and labor is costly in these countries. However, in India, labor is abundant and

is relatively cheap. Most of the organic farmers are in the transition phase as these farmers

continue with organic farming, the production costs are expected to reduce.

Organic food products exported from India

Organic Food Category Organic Food Products

Organic Cereals Wheat, Rice, Maize or Corn

Organic Pulses Red gram, Black gram

Organic FruitsBanana, Mango, Orange, Pineapple, Passion fruit, Cashew

nut, Walnut

Organic Oil Seeds and

Oils

Soybean, Sunflower, Mustard, Cotton seed, Groundnut,

Castor

Organic Vegetables Brijal, Garlic, Potato, Tomato, Onion

Organic Herbs and Spices

Chili, Peppermint, Cardamom, Turmeric, Black pepper,

White pepper, Amla, Tamarind, Ginger, Vanilla, Clove,

Cinnamon, Nutmeg, Mace

Others Jaggery, Sugar, Tea, Coffee, Cotton, TextileSource: org-marg.com

Drivers of market force

Organic products mainly being exported, are finding more consumers in the domestic market.

The nutritional benefits of these products have ushered in organic food revolution in the

country, which is currently at a nascent stage. Although health is the key reason for growing

demand, other incidental benefits such as better taste and better environment are also driving

growth. There is growing awareness of the environment and the dangers of chemically grown

products. Besides, with a growing number of retailers offering various organic products, they

are now more visible and therefore, are more likely to generate demand. Another key factor

driving demand has been the change in the consumer perception from organic products being

elitist and healthy. The rising health-consciousness will certainly trigger demand in the near

future.

Influx and Junk Food

Presently due to the inevitable migration of people in search of work to metros, time

constraints for attending to highly placed and volatile job responsibilities of the corporate


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executives and commitment to time, the employees are forced to accept fast food as an

alternative to quench their hunger. Besides, the teenager community is attracted by the fast

food giants by virtue of attractive audio-visual media promotion and psycho-somatic

advertisement glares. Media hypes create an indelible mark in the mind tree of the youngsters

resulting in becoming brand loyal and a life time purchaser. They resort to frequent buying of

edible stuff which have innate inorganic properties in them; which are hazardous to the health

of children, youngsters and consumers at large(Gibson,1990). This has become a passion with

the buyers psychology and is implanted in the mind, body and soul.

Minerals and Vitamins matter in food intake

Organic food have an implication which is wanted by health conscious people, but take away

food has become a substitute due to time constraints and has created an equity in the food

market ( Goulding,1990) . Foods have to contain certain valuable ingredients like

carbohydrates, dietary fibers, vitamins (especially folate), vitamin-A available from yellow

and green vegetables and vitamin-C available from dark green vegetables and most fruits,

potatoes. Moreover minerals like magnesium, calcium, iron, zinc and selenium (wholegrain

products) and potassium are essential for the body. Vitamins-B and Vitamins-E (rich in wheat

germ), Vitamins-B12, niacin and thiamin are beneficial for the body. These are available in

the organic foods produced by the farms and are seldom available in the junk foods.

Shopping malls and Meta-markets

Shopping malls retail rations, fruits and other consumables. They procure food material from

unorganized markets in the requisite quantum, processed through organized service providers

producing house products. These are procured with respect to the visual looks of the edible

product like rice, wheat and maize, rather than based on the organic properties of the produce.

It is collected without wanting to know in which kind of firm it has been harvested. The

quality of the produce is organic or not. Management by the shopping malls in arranging the

requisite produce; packaged in the right way is important.

Connoisseurs of health and pricing

In the present context; organic food has become an interest for the connoisseurs and health

savvy intelligent community. It has a propelled a group of farmers to cultivate their produce

in the organic methods; using the traditional manures, fertilizers and bi-fertilizers. These

drastic changes in the minds of the conscious buyers have been changing the mind of the

farmers. It is for that the prices of the organic agriculture products are going higher (Barnett,

2004). They are being sold in the specific identified vending zones at a cost which is three to

four times higher than the usual harvesting made by the other farmers.


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Organizing market places; call for the principles of management and marketing. They

analyze, calculate and assess the critical quotient of the buyers to resolve at a decision. They

arguably analyze the power relations of the buyer and the seller, between the vendor and the

vendee, between the retailer and the consumer.

Societal transition and changing paradigms

Societies are undergoing transformational changes in the different spheres of activities. It is

due to the economical changes in the per-capita income of people. It happens due to the

procurement of manpower from lesser countries; at a lesser pay. They mingle to create a

cultural mix in the society existing (Appadurai, 1988). Cross-cultural dimensions of life are

changing for a lifestyle requirement at par with the living conditions of the market places.

In fact, Official National Food Surveys show that many people fail to get the Recommended

Daily Intakes (RDIs) for a variety of nutrients due to junk food habits. According to the 15

years of research study by Emmanuel Cheraskin and his colleagues at University of Alabama,

13,500 people have been tested and found that the nutrient intake of most healthy individuals

are often 5-10 times. We may be living longer, but other measures of our health like cancer

incidence, infertility, mental health, low energy levels, depression and allergies worry us for

life due to irregularities of food.

Tradition and Ethics

Traditional societies of different countries across the globe are in a process of churning into a

level; wherein they are unable to relate and juxtapose ethics with tradition. Tradition is

condemned to be obsolete and values are becoming unethical and a new equity in the social

climate has been emanating (Desmond, 1998).

Societies having low context culture, medium context culture and high context culture have

undergone a huge change and the ideology of the segments is changing with respect to the

food habits. New generation is thinking of burger, pizzas and hot dogs as a substitute for the

conventional breakfast. Fast food giants have moulded the societal food requirements into the

mould in which they want the customers to be standardized (Brown, 1996). They want the

customer to procure the product as the way they are expecting to be served by the food giants.

Geographical and Cultural differences

Cultures across the world in different geographical places have evolved with the passage of

time. Cultures have become uniquely different from each other with respect to the climatic

variance and regional altitude. It has been mundanely unique as per the environment of the

region or locality. Cultural nuances and subtle variances occur in places adjoining the


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epicenter of the culture and slowly diffuse centrifugally melting into cross cultural breeding

grounds (Abel, 2001).

Culture is a changing phenomena, people shifting from one place to other part of the globe

acquire new culture and forego old culture and create an eclectic culture which is peculiar.

These of the peculiar assimilation of cultures with respect to food items have become

prevalent in the civilization of the west and the east, north and the south. Amongst all US is a

dominant force and has enforced its ideology on food and mobilized the markets by virtue of

equitable investments in the food markets. It uprooted the concept of organic produce;

enabling farmers to harvest for making profit at the cost of customer health.

The factors of differences in the platforms of culture have been thronging inevitable results

which are consequentially throwing health hazards and new set of diseases that doctors need

to experiment to cure.

Ancient food habits

Taking a historic reference to the literature of food habits of ancient times in different parts of

the world, they were eating natural forest produce, agriculture lands, farm lands and

courtyards in the traditional cuisines. Traditional food menu have been typical in response to

the socio-cultural background of the region. It depends on the taste and preference of climate

and species. It has been an organic process of preparation of food items which made them

live long. They did not have to go for surgery and medicine for that matter.

Under the back drop we can realize that organic food fraternity can only bring considerable

benefits and reduce risks to health. Dr. Vyvyan Howard, toxicologist from the University of

Liverpool, finds that we each of us have some 500 toxins in our systems that our

grandparents did not have because they did not exist 50 years ago. These have created

lifestyle-related diseases like diabetes, hypertension, obesity, breast cancers and coronary

heart diseases among people (Simmons, 1996).

Lifestyle changes and reaches of food varieties

Advancement of science and technology; innovations of transportation facilities in the

roadways, sea-routes and air ways have opened corridors for business executives to travel in

the quest of business deals. Smooth transportation of travelers; unlike the early years

traveling on horseback; made people travel from place to place comfortably free from risk.

Horse drawn carriages were slowly replaced by super-sonic sky-liners networking the

geographical corners; making people travel within the shortest possible time. Dust and

distances, jet-setters, globe-trotters and global customer swiftly became a buzz world in the

corporate atmosphere.


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Coca-Cola founded in 1875 transported in horse drawn carriage is being believed to the most

popular brand sold in 200 countries of the globe; maintaining a flavours matching to the

pallet of the ethnic taste buds of people. Things have to move ahead and with it hearth have

to guard at the cost of alluring advertisements of marketing czars. Organic food market is

picking up as a concept for the rich, which is available in the remote corners of the globe

deprived of the facilities of pompous life and plenty.

Food Giants and Takeaway Food stuff

The recent spurt of junk food markets otherwise known as take away foods have stolen the

market from the traditional restaurants, hotels and other regular food cafes across the globe.

Mass branding by KFC and McDonald as fast food chains, Wal-Mart and JC Penny Carrefour

and other shopping malls have organized the unorganized market and have created a strong

market niche for themselves. They mobilized the buyer community to resort to the luxury of

style and guiles.

The KFC and McDonald by virtue of its chain of restaurants worldwide have ensured the

concept of readymade food in the food retails; which are being alleged for being providing

chemically treated food used with slow poisoning preservatives. Chemical flavours added to

the food; served to the customers afresh; has an undertone with respect to the health hazard of

the bubbly consumer. (James, 2007) The consumer is unconcerned because of the gadgetry of

fast paced life in the metros and cosmopolitan cities of the nation. It is becoming a lifestyle

with young stars; which shall be translated in their posterity.

Posterity matters

Government has taken measures to make these products popular in the domestic market.

Prices are to come down when the farmers complete. As demand goes up, other factors like

economies of scale will automatically lead to a drop in prices.

The farmers, on the other hand, are looking for a boost in the form of subsidies and a retail

platform to showcase their products, which until now are picked up by co-operatives or

NGOs. Trade fairs need to be organized more frequently. Lastly, the transition to organic

products will help the farmers, the retailers as well as the consumers.

Organic food: A Strategic Market

Organic food has been of vital interest to all people around the globe, but its non-availability

has bolstered the market forces to launch preserved products. Science of preservation have

resulted in maintaining for the durability of products and there by packaging. To drive the

market by attracting potential customers companies are creating sensation in their


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promotional plans. (Murray, 1994) They create market share and reach to the heart share of

the buyer.

Junk foods have all the disadvantages for the customer but it is an inevitable requirement.

Countries concerned about the heath and hygiene of the nationals, consciousness look for

regulations to nab the perpetrators of law, yet the rules have their slackness in many ways.

People as buyers; need to be conscious of the purchase they make and food they eat. They

need to have the social responsibility to report the authorities in case of any violation meted

by the plethora of retails small or big scattered all around. There cannot be any substitute for

organic food. Good health is all about good food and marketing ethics. In the power relations

implicit in market forces; buyers prevail at the end of the game and they need to prepare them

selves to be conscious to wage a war against junk food and ensure a proper order in the

market places.

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