Currently, the biggest barrier for consumers regarding the consumption of organic foods is price. Organic farms are typically smaller than industrialized factory farms and because chemical fertilizers and pesticides are not used, it takes longer for food items to reach harvest.
Additionally, because chemicals are not used, more labor is required for tasks like removal of insects and weed control.
Another major factor in the cost of organic and clean food is related to demand. Organic product sales reached $43.3 billion in 2015, which was its largest dollar gain ever, adding $4.2 billion in sales in 2015, up from the $3.9 billion recorded in 2014.
However, as with any process of bringing products to market, there are a number of entities involved. This includes producers, processors, distributors and the retailers; and many of the organic foods we consume in the U.S. are not grown here. The distance in transportation adds additional costs to distribution.
This process, illustrated above, typically leads to a 250-300 percent markup in the cost of organic products if compared to Producer cost.
Green PolkaDot Box will solve the price issue for consumers through its unique Vertical Integration business model.
Through the acquisition of organic farms, production and processing operations, Green PolkaDot Box will lower the prices of CLEAN foods by significantly decreasing Producer mark up and the costs associated with processing and distribution, while cutting Retailer markup by 75%.
The acquisition of strategically positioned organic and clean food producers and processors is the key to our business model. These acquisitions include, grass-fed beef ranchlands, organic agricultural crop farmlands, seafood operators (such as Day Boat), grain producing farmlands, and nuts and seed producing properties will enable us to decrease prices through effectively bringing most of the entire process “in-house”.
An example of the savings is illustrated below:
In the example above, the current cost of the clean organic food product is $2.94. After GPDB’s vertical Integration, the cost will drop to only $1.00. This represents a savings of 66% off retail pricing.
Imagine the disruptive force Green PolkaDot Box can become to make CLEAN foods affordable for all and help eradicate the distribution of contaminated GMO food.
Join our Health Merchant Program to get involved in the clean, organic and non-GMO food movement!