Posts Tagged ‘grass fed beef

The Stubborn Economics of Density

» August 23rd, 2014

First: take any product on earth and imagine producing a better—but inherently more expensive—version of it. Now imagine marketing it. You don’t have to be a whiz in economics to conclude that your target market will be a relative minority who values that product enough to pay more for a higher quality version. As a savvy producer, you will never lose sight of the fact that the core value of your product derives as much from the higher costs of production as the virtuous connotations your loyal followers confer on the commodity. As a sober producer, you will also never lose sight of the fact that your market will always be a small one compared to the millions upon millions of consumers who will remain perfectly happy with the cheaper mainstream version of the same commodity.

Second: take animal products made from animals raised on pasture and think about their place in the global meat market. These goods are inherently┬ámore expensive to produce: nothing you do as a producer to reduce costs will compete with the mainstream version. This fact is due to an inescapable reality: consolidating animals into CAFOs—even when the externalities are considered—is cost effective. The product is cheaper. The reasons confinement is more efficient are numerous: you need less land, you are less reliant on independent variables such as weather, the animals reach slaughter weight faster, you can ┬ábenefit from mechanization, you can capitalize on scale economies, and so on. Given the costs of production, the price of grass-fed anything will, on balance, always be higher. Whether we’re talking about houses or cows, density pays.

Finally: ask yourself how the second option will ever compete in a mass market with the first. I’m not saying millions and millions of consumers won’t vote with their forks and, recognizing the many benefits (in addition to the product’s quality) of the pastured version, choose to buy it. Good for them. But what I am saying is that the benefit will only be to their consciences, and nothing beyond. After all, with billions of consumers in the meat market, it would defy not only basic economics, but the history of basic human behavior for a majority of those consumers to choose the inherently more expensive version of the same product. That would be the definition of irrational.

Conclusion: those who want to reform the horrors of industrial animal agriculture by substituting the more expensive pastured version of meat and dairy with the cheaper and more efficient industrial version are irrational. There’s no other way to say it. The foodie media that writes glowing articles about pastured this or that under the assumption that this version of beef or pork or cheese is the wave of the future (in addition to animal welfare organizations that promote “humane” animal agriculture as a step in the “right direction”) need to wake up and realize that their fantasy—given what industrial agriculture is doing to animals and the environment—is one we really cannot afford.

Does this mean the end of eating animals? Not necessarily (more on this later). But, for now, we can only conclude that it would make so much more sense to promote the real benefits of saying no to all animals raised for the purposes of selling and eating them, rather than trying to clear an impossible hurdle.