PEST Analysis: The Pest Analysis Of Organic Food

2129 Words 9 Pages
Contents
Introduction 1
Political factors 2
Economic factors 4
Social factors 7
Technological factors 9
Referencing 12

Introduction
With this rise in popularity of the organic movement there is still some confusion as to what Organic really means, also is it better for me and why the price is almost double that of the same conventional product. I will try and answer those question in this PEST analysis.
Also in today’s culture, cancer has seen a steady rise, and a major contributor to this may be the food we eat. Food that was once good for us is now filled with chemicals. In order to get a faster and bigger yield to maximize returns and profits, chemicals are used that may adversely affect consumer’s health. A chicken once
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The social section will look at the culture of organic food within today’s society. The economic section will look at the organic market, how much it costs to produce organically and the economic factors entailed in producing organic products. In the last part we look at Technology and the ways we can make it easier for customers to understand more about organic products and the use of technology within the farm.
Political factors This refers to government regulations imposed on organisations and the legal framework established for operations
Landscape for political health is at a constant change. GM (“Genetically Modified Food”) is banned within the European Union and further banning is being issued on pesticides, this will prohibit the use of most pesticides on crops. If you go to any fast food chain, you will see the calories in the food clearly displayed. This is in response to regulations and also to consumer demand. The first EU regulation on organic production was passed in June 1991. The regulation was mostly taken from the guidelines of International Federation of Organic Agriculture Movement. This movement had called for regulations on labelling and the inspection of animals that are being classed as organic [1].
The regulation of organic farming can be so painstaking and restrictive that many people opt out of the choice to grow
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The sale of organic products has seen the fastest growth rate in the last five years according to Organic Trade Association based in the United States. With this market increase organic food demand is starting to outgrow its supply indeed if it has not already done so. [3].
Within the UK and Ireland organic farming is seeing a decrease. This fall could be because of a number of factors. In order for a farmer to become organic he/she can use little or no chemicals, which means more labor is needed to produce plant or animal based products. For farmers wanting to use fertilizers in their fields it means they would need to pay out more for organic fertilizers in order to keep their organic certificate. Since the use of chemical based weed killers are not allowed in organic farming, farmers have little choice but to use a method called crop rotation

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