Food businesses have it good, insofar as people will never stop eating. Businesses selling ingredients are starting to do much better than those that sell cooked food, given increasing health concerns of eating junk food, making matters difficult for companies like McDonalds Corporation (MCD). Even among those selling ingredients, specialty supermarket chains like Sprouts Farmers Market Inc. (SFM) and Whole Foods Market Inc. (WFM) are doing better than others like Walmart Stores Inc. (WMT) due to their offerings of fresh produce that is natural and organic, the two buzzwords around food that are becoming increasingly popular with an ever-more health conscious population. Let us look at why Sprouts Food Market is a good investment bet in the current scenario.

Healthy eating trends

More and more people are becoming conscious of the benefits of eating organic and naturally produced food that reduces the number of chemicals entering their bodies via the food production process, in terms of fertilisers, pesticides and feed. There are also increased concerns surrounding the consumption of genetically modified foods, with some long-term studies linking them to deleterious effects on the body. Also, consumers now want to find non-allergic food, such as gluten free food, in their supermarkets. All these factors are leading to the increasing popularity of stores such as Sprouts Farmers Market.

The pricing factor

One reason why the company is doing better than many rivals is because of its aggressive pricing. The company has made a smart strategic decision of keeping the price of essential items such as milk low, which in turn generates heavier customer traffic, thereby offsetting any loss in profits.

Opportunity for growth

The company started out with one store in 2002 and right now, has a total of 191 stores across 10 states in the U.S, with its largest presence in Texas, where it started and in California. That means there are 40 more states that the company has no presence in and that gives it a lot of room to grow. The company is looking at having 1,200 stores, more than six times the current number, in the next 15 years, and there is no reason to say that the company wont get there. In the coming year, 27 new stores are planned for opening.

Not an income stock

Since going public in 2013, the stock has not performed well and hasnt paid out much in terms of dividends either. So it is not for investors looking for regular income or short-term gains. But for long term investors, it looks to be a solid growth story. This is even more so after the exit of Apollo Global Management which has sold all its stock in the company last month, effectively giving the company more control over its operations.

Conclusion

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Organic Food Demand Rise And Smart Pricing Makes Sprouts Farmers Market A Smart Long-Term Stock Pick

TORONTO Lets be honest: organic food can be pricey. But does it really make that much of a difference?

Experts say going organic canhelp limit your pesticide exposure since organic food is said to belower in pesticides, free of genetically modified organisms, additives, and irradiation. If youre trying to stretch your dollar at the grocery store, though, there are certain fruits and vegetables that mightbe better than others to buy organic.Theyre the onesbelieved to be the most contaminated by pesticides,alsoknown as the Dirty Dozen.

The annual list is put together by theEnvironmental Working Group, aU.S.-based health research and advocacy organization. For the fifth year in a row, apples have been the biggest offender when it comes to pesticide residue. According to analysts, thats becauseof chemicals applied to the crop before and after harvest to preserve them longer.

Theres also the Clean Fifteen. The produce on that list is the least likely to hold pesticide residue, according to EWG. The cleanest fruit on the list? Avocados. Only one per cent of them showed any detectable pesticides.

READ MORE:The 41 most nutrient-dense fruits and vegetables

Registered dietitians believe the lists can be a handy tool for consumers.

If you cant afford organic all the time, you can buy fruits and vegetables off that list and not worry as much about your pesticide exposure, said Edmonton-based registered dietitian Lalitha Taylor.

READ MORE:5 ways to save money on fruits and vegetables

When it comes to nutritional content, though, Taylor and other dietitians stress that theres no good research to support that organic food is better than conventional (non-organic) produce.

A 2012 study from Stanford found organic foods were no higher in vitamins or minerals, except phosphorus. While they did have a 30 per cent lower risk of pesticide contamination,the pesticide levels of all foods tested were within allowable limits.

Read more from the original source:
Pesticides in produce: best bang for your buck when buying organic

Bio food is legally coined by the European Union. Foods falling into this category originate from controlled organic sources, are not genetically modifi ed and dont use conventional pesticides, artifi cial fertilizers or sewage sludge. For animal products it stipulates that animals be kept in appropriate conditions as defi ned by EU regulations and are not fed any antibiotics or growth hormones. Source: http://www.gesundwachsen. org/organic-bio-foods. More or less when we are talking about bio-food, it means organic food. Based on the small knowledge I have of the food crop production industry, I am reacting to points 75 and 76 of our budget speech 2015-16. First of all let me congratulate the Honorable Minister of Finance for his budget speech. There is no doubt that the use of chemicals has an impact on our health and it can be related to the increase in the amount of cancer diagnoses. But at the same time, since the last 10 years several harmful active ingredients have been banned worldwide and some are still on the waiting list. We do have competent bodies in our country which are monitoring these hazardous chemicals and persistent organic pollutants closely. Now, how are we going to implement such a dream project? Normally, we cultivate around 7000 hectares of land annually and the average production has remained almost the same for the last fi ve years. The bio-food crop production is around 1/3 of the conventional crop production and we must not forget that in Mauritius, we are almost self suffi cient in food crop production. Therefore, to cater for the 50% bio production we will need a surplus of 7000 hectares of land. Are these lands available? We are a young island compared to the old continents and most of our lands are marginal and are of basaltic type, they are very poor in nutrients and minerals as our average top soil is around 6 inches and those of the continents go up to more than 36 inches. To compensate these mineral requirements we are totally dependent on chemical fertilizers although we use manure and compost for the balance of the soil bio-diversity and there is no way out. Most of the time, we use seeds and tubers as planting materials. There are very few well-established companies around the globe, which can provide these bio planting materials under a bio certified label and they are very limited in terms of varieties for the same crop species. This can cause a high bargaining power by suppliers as there are monopoly situations on the market and taking such a risk will expose us to food security problems. There are two types of crops : the cash crop and the food crop. Those falling under the cash crop category are sugar cane, rice, wheat, maize etc. Food crops refer to vegetables and in Mauritius only sugarcane is produced as cash crop. Some bio-planting materials are patented and require an intellectual property rights fee on every production. These planting materials can be genetically modifi ed seeds or new hybrid seeds with characteristics of pests and diseases resistance. Therefore, embarking on the vision of 50% bio-food, we will need to set up an intensive research institution to produce around 30 common vegetable species. This will entail high investment and resources; over 90% of failures are recorded on research programs and out of which a percentage fails on trials and development programs; and only 10% remains. Out of this 10% rate of success only 1% will be adopted by the farming community. What about the alternatives of chemical fertilisers? Organic fertilizers are not the solution because of the adaptation problems and they need complex minerals to feed on so as to release absorbable minerals that are used as nutrients by plants. The source of manure must come from a bio certifi ed farm which is not applicable in Mauritius because none of our livestock and dairy farm can provide such product. Even our local compost manufacturers will have diffi culties to market under a bio label because their sources of raw materials are from household green waste and segregation is being done on site and not at source. Another issue is the process of certifi cation; there are two levels of certifi cation, one is land which will be under production and second the products. To certify 7000 hectares of land is quite a big task and necessitate a huge amount of time, resources and technology. Now just imagine about the production certifi cation. It can be done either by public or private sectors and this cost will be transferred to the customers. Are the customers ready to bear this additional cost which will be quite heavy? Above that, we will need a mechanism to control these rates because vegetables prices fl uctuate everyday depending on market demand and supply. We will also need new regulations under a Bio Food Act that will resolve disputes should there be frauds in production and sales of produce. Another issue will be the application of compulsory trademarks or labeling for traceability purposes for those dealing in bio production. The treatment and minimal processing zone facilities. On an individual basis we dont have capital for investment and even under regroupings it is quite a heavy investment. The type of water, the packing and labeling area, the control unit etc are the logistics that should be present to differentiate bio-food from common ones. All these additional costs will have an incidence on the customers bill at the end. Maybe there is a misinterpretation of bio-food production and sustainable agriculture which are two different concepts but bring almost the same results in the end. The world is moving towards sustainable development, and sustainable agriculture forms part of it. Production systems, policies and institutions that underpin global food security are increasingly inadequate. Sustainable agriculture must nurture healthy ecosystems and support the proper management of land, water and natural resources, while ensuring world food security. To be sustainable, agriculture must meet the needs of present and future generations for its products and services, while ensuring profi tability, environmental health and socioeconomic equity. The global transition to sustainable food and agriculture will require major improvements in the effi ciency of resource use, in environmental protection and in systems resilience. Sustainable agriculture requires a system of global governance that promotes food security concerns in trade regimes and trade policies, and revisits agricultural policies to promote local and regional agricultural markets. Source: FAO. We have chosen the wrong way and this bio-food project will engulf a huge amount of public funds. There is an alternative way, sustainable agriculture. Our farming community has already encompassed it and is moving slowly but surely.

Originally posted here:
WHAT A TARGET, 50% BIO-FOOD : Is it a joke or a dream? Lets find out.

Before we talk about the New MacDonald video, let's acknowledge the obvious: All organic-food marketing is comparative marketing. Explicitly or implicitly, organic marketing touts organic agriculture as superior to conventional agriculture.

It has to. The only reason to pay more for organic food is if you believe it's somehow better -- better for your health, better for the planet, better for whatever reason. Encouraging that belief is the organic marketer's job.

But is it the organic marketer's job to attack conventional agriculture? What if the attack blurs the line between legitimate criticism and misrepresentation? What if the attack is emotional rather than factual? Those are among the questions the New MacDonald video (http://tiny.cc/) raises anew.

New MacDonald paints a toxic picture of conventional agriculture. It depicts a troupe of children wearing straw hats and un-tucked shirts singing a takeoff on "Old MacDonald Had a Farm." As they sing and sway, other children prance across the stage, acting out the song. At one point the prancers wear hooded protective suits, gas masks and scuba-like tanks and spray billowing white puffs at tall plant stalks. The troupe sings:

"And on that farm he sprayed some crops

E-I-E-I-O.

With some GMOs here and a pesticide there

Here a spray, there a spray

Everywhere a spray spray"

Suddenly a small yellow plane gliding down a rope on pulleys bombs the stage with more spray. A white cloud envelops the world. The piano thunders a dissonant chord, then pauses. Children shriek and flee, waving their straw hats at the cloud as they evacuate.

Excerpt from:
Old, Old MacDonald Never Excited This Kind of Controversy