Over the weekend I posted a flippant note about saving money on milk. I hoped to spur conversation about unit pricing, but it led instead to a comparison of milk prices around the U.S. and Canada. This discussion was more interesting than the one I had intended.
“Wow,” I said to Kris after reading some of the comments. “Can you believe anybody would pay $6 a gallon for milk.”
“But it’s organic milk,” Kris said.
“So?”
“So, some people are willing to pay for that. For some people it’s worth it. It’s like how you’re willing to pay extra to buy something local.”
She has a point. Last week I stopped at the grocery store to buy honey. I was frustrated that the only honey available was from California, Maine, or Argentina (!?!). I wanted Oregon honey, preferably from a farm within twenty miles of our home. I’m willing pay more to buy local products because I want to support local farmers and merchants, to enrich my neighbors and my community.
Money and values
For all of us, shopping decisions go beyond just price. When we shop, we are voting with dollars. I support local merchants. You may support Christian businesses. Many of my friends make financial decisions based on concern for the environment.
- I have a friend who lives within walking distance of a national chain supermarket. She could buy all of her food there. Instead, she drives ten minutes to a natural food store, where she pays a premium for her groceries. Obviously this isn’t frugal, but is it foolish? For you, it may be. But my friend is happy to pay the extra money for quality organic food. Buying her food from the natural food store allows her to spend money in support of her values.
- Another friend is wary of U.S. dependence on foreign oil and of the environmental damage caused by heavy use of fossil fuels. He lives in a neighborhood that allows him to walk to buy groceries or to see a movie or to eat in a restaurant. He rides his bike to work. When he drives, he uses a Toyota Prius. Though he pays more for some of his choices, he saves money on others. (Choosing a walkable neighborhood is a great way to save.)
- A third friend is a vegetarian, in part because of the ecological damage caused by raising animals for food. She also grows a lot of her own fruits and vegetables so that she can be sure of the methods used in production.
Our shopping decisions come from an intersection of money and values. Sometimes the least expensive item isn’t the best choice because it would require you to compromise your personal ethics. Sometimes you’re willing to pay more for a product that is organic or environmentally friendly. Some people are willing to pay $6 for organic milk because of the perceived benefits, not just to themselves, but to the world around them.
The ecology of commerce
Last year, one of my friends loaned me The Ecology of Commerce by Paul Hawken, a book about the future of capitalism, about what sustainable economic systems of tomorrow might look like. I haven’t read the book yet, but I’ve skimmed it, and I’ve found a lot of food for thought. In the introduction Hawken writes:
To create an enduring society, we will need a system of commerce and production where each and every act is inherently sustainable and restorative. [...] We must design a system where…the natural, everyday acts of work and life accumulate into a better world as a matter of course, not a matter of conscious altruism.
Is such a system possible? I don’t know. What I view as a better world may not be a better world to you. And isn’t there some value to a system where we do have to make sacrifices, do have to make conscious choices in order to support the causes we believe in? If showing our support for the environment is painless, are we really showing our support?
Hawken proposes eight guidelines that he believes can lead us to an economically and environmentally sustainable future. Though most of these concepts deal with market-level issues, a few have relevance to personal finance. Hawken says the ideal system must:
- Be self-actuating as opposed to regulated or morally mandated. Give people a reason to choose organic or locally-produced food and goods. Don’t attempt to legislate it. Don’t proceed from a sense of moral superiority. Make it clear how these choices support the average consumer’s goals and desires.
- Honor market principles. “We can’t just ask people to pay more to save the planet,” writes Hawken. “They won’t do it in some cases — and can’t in most.” Not everyone can afford to pay $6 for a gallon of milk. For sustainability to succeed, it must conform to our capitalist culture.
- Be more rewarding than our present way of life. Hawken notes that “government, business, and environmental organization cannot create a sustainable society. It will only come about through the accumulated efforts of billions of eager participants.” And in order to get those billions of eager participants, people need to have options that they do not perceive as limiting. Not everyone is willing to sacrifice current comfort for some abstract ideal.
If you’re concerned with how your personal lifestyle affects the environment, consider borrowing Duane Elgin’s Voluntary Simplicity from your library. I’m not a fan of the book — when I reviewed it last summer, I wrote that it wasn’t about simplicity at all, but about “ecological living” — but I do think it could be interesting for those interested in living lightly on the earth and consuming less. Elgin relays four questions designed to encourage conscious simplicity and balanced consumption:
- Does what I own or buy promote activity, self-reliance, and involvement, or does it induce passivity and dependence?
- Are my consumption patterns basically satisfying, or do I buy much that serves no real need?
- How tied are my present job and lifestyle to installment payments, maintenance and repair costs, and the expectations of others?
- Do I consider the impact of my consumption patterns on other people and on the earth?
And remember my number one tip for saving the environment: buy less stuff!
Personal choice
When I bought honey at the grocery store last week, I tried to make a purchase that matched my personal values — I tried to buy local. But my grocery store didn’t let me make that choice. Instead, I was forced to compromise. I bought organic honey. From Brazil. By way of Ohio.
How are your shopping decisions influenced by your personal values? Do you consider the environmental impact of the choices you make? Are you willing to pay more for organic produce? Do you go out of the way to support local businesses? Are you worried that choices like these are luxuries available only to the affluent? And if you believe environmental concerns are largely unwarranted, how does this affect your decisions?
GRS is committed to helping our readers save and achieve your financial goals.Savings interest rates may be low, but that’s all the more reason to shop for the best rate.Find the highest savings interest rate from Ally Bank, Capital One 360, Everbank, and more.
This article is about Choices, Odds and Ends, Shopping
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
Discover is a paid advertiser of this site. Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.
SEARCH FOR RECENT ARTICLES
Personaly I make the decision to only eat “happy” animals. “Happy” means that I know the famer who raised that animal, I know that animal had grass/earth, sky and a happy-ish life. More importantly I know that my food was not killed while sick, hurt or unable to walk. This gives me piece of mind even if it is more expensive.
Because I buy locally pretty much everything, eggs, bread, milk, cheese, butter, meat, vegs, and fruit. My advise to JD is go to the local farmer’s market when it is open and meet farmers you would like to do business with. Most of these people have produce all year long that they can sell you if you know where to locate them. If you make the time to make a local connection you help the community and the earth by not having food shipped to you.
loading....
Greener Pastures Says:
April 22nd, 2008 at 7:10 pm
I think prices get jacked up simply because they are organic, not because they actually cost more to make. The perception is that organic costs more, so it does, when in fact, probably sometimes it does, and sometimes it doesn’t.
Ever have a garden? If you have, have you noticed how much produce you lose if you don’t use any pesticides?
Now, presume that a conventional farmer loses significantly less produce because of his use of pesticides, so he has a larger crop. He sells his crop at a price that covers his costs and gives him a small profit (or sometimes not, because he is almost entirely dependant upon what the processor for his goods is paying).
Now, figure the organic producer loses more of his crop to pests. So his crop is smaller. Yet, he still had to produce the whole crop (including the part lost to pests) at a cost. So he has to get more for his smaller crop to cover his costs.
loading....
The local Wal-mart for good or evil is also a local business.
Depends on who owns the Wal-Mart. Does a local person own that Wal-Mart? Or is it a corporate owned store? I don’t know if Wal-Mart franchises or not. But if they don’t, if they are all owned by the central corporation, then no Wal-Mart is really “local”, which in this context generally means locally owned.
loading....
@J.D. and all else who love honey.
Having worked at an apiary for several years, I’m assuming that when you buy honey from a local producer that you’re buying the raw straight-from-the-tap honey that is not pasteurized or creamed?
The honey is so much better. If you live out of town on a farm, then consider buying a few hives from the apiary and working the bees yourself. From experience, there really isn’t all that much work to do. In spring and fall, feed them as much syrup (water mixed with lots of sugar) as they can take and for winter insulate the hives as much as possible so they can survive the winter. Buy a smoker (to pacify the bees while you work the hive) and we used to use burlap bags to burn, when we ran out, we would burn dried up cow patties. Yes, cow dung. It stunk, but it worked and was better to have calm bees vs. getting stung.
Apart from the rainy days getting stung, I really miss working bees. Tons of exercise, lots of fresh air…. ahhhh, perfect. Unless you’re allergic of course.
loading....
@JD
One other good reason to buy local honey:
http://www.helpthehoneybees.com/#/howYouCanHelp/signAPetition/
loading....
The discussion of frugalness or cost versus basically ethical eating is something that I wrestle with. In our household the vast majority of time we buy organic or free range meat and milk, and also most (not all, not the canned stuff) of produce as organic or local as well. The reason for the milk choice is that my 2 children drink a TON of milk, so any exposure I would like to minimize. The meat I buy I swear tastes better than the 99 cent specials at the big box, for the quality alone I would rather eat less but better meat than vice versa. Regarding organic fruits and veggies, I don’t know if they taste better or not, maybe they do, maybe they don’t. But alot of stuff I purchase I don’t necessarily purchase for what effect it has on me, but what effect it has on the environment. On example there is huge mortality (up to 50%) of migrating songbirds who visit conventional agricultural land in South America, due to their pesticide use.
Now all these decisions cost more money than conventional choices, and it restricts my ability to reduce my food budget. Right now I can afford it, but I’m not sure what I would do if I was faced with if it did make the difference in balancing our budget or not. At that point I would have to research even more and pick and choose my highest priorities, and be more flexible on the rest.
Another point I wanted to make is that the amount of greenhouse gases due to food production is way more influenced by the amount of animal (meat, dairy) product in one’s diet than distance traveled. So if you don’t want to count food miles, or want to do more to reduce your footprint, simply increase the number of meatless meals you eat a week.
loading....
Nice post – and something I discuss in my own life.
I do the local thing for food as much as I am able. It is a lot of extra work but I enjoy it for the most part.
One thing that is v. expensive but I am commited to most of the time: shopping from local merchants. I am so sick of seeing large corps come in and squash “the little people”. Every town looks the same to me for the most part and I still want people to make a living from their own business in the U.S.
Sometimes it is hard committing to this; many small merchants in my neighborhood don’t make it easy – such as limited hours – or- my fave! not being open when I arrive although it is within their posted times! And also I’m finding the selection is limited and/or they are out of stuff I need a lot. I try to stick it out but enough weeks of this and I find myself at Giant and the PetSmart – which makes me feel disappointment within myself. Shopping the locals for necessity is definitely more expensive, but I feel it is worth it for the “greater good”.
By staying in my neighborhood to spend the bulk of my cash too, I get to walk everywhere and not use gas. That appeals to me regardless of how much gas costs. I was like that when it was $1.10/gal.
loading....
“I bought organic honey. From Brazil. By way of Ohio.” Sadly you didn’t buy “organic” honey. Central and South America have different pesitcide standards than the US. Products from these areas are exposed to MANY MORE PESTICIDE TREATMENTS AND HEAVIER PESTICIDES than are used in America. There is no way to certify honey as organic anyway, if you think about it, BECAUSE NO ONE CAN TELL THE BEES TO ONLY GO TO UNSPRAYED FLOWERS. Crops south of the border are FREQUENTLY AND HEAVILY DRENCHED in pesticides. You bought the cheapest honey, but it wasn’t organic, and the sale sent American money to another countryy instead of the cash going to a local farmer. WE HAVE A GOVERNMENT WHICH DOES THAT WITH OUR TAX DOLLARS, SO LIKE YOU, I TRY TO SPEND MY MONEY LOCALLY. Try advertising on Craigslist for local honey and I bet you find a beekeeper in the neighborhood for when you need another jar. If you want strawberries or grapes in January or February, try to buy them from California, as the south of the border ones are treated with loads more toxic stuff!
loading....
I am so surprised that no one has mentioned the health benefits of buying LOCAL honey. When you eat honey made from bees that live off the local flowers you become less allergic to them and seasonal allergies go down. Even though the honey is $6 it is still way cheaper than allegra or claritin.
loading....
I think that any “advice” from someone without experience working in agricultural production/regulation should be taken with a grain of salt and a pound of personal research. Profit margins are higher on organic goods, and individuals buy it because of rumors and myths about organic food.
Organic farms produce food differently. True, the cows do not receive antibiotics or rbGH/rBST on organic farms, but the end result for both is milk WITHOUT antibiotics. Milk (organic or not) has trace amounts of rbGH/rBST since that is a protein found in ALL COWS. Not using antibiotics actually makes cows suffer MORE. & if recovery without medication seems unlikely, a dairy cow with a simple respiratory infection will be slaughtered for its meat, or sold to a traditional farm where she can get the medicine she needs.
Regular milk is pasteurized and has a shelf life of about 20 days. Organic milk is ultrapasteurized (which is more forgiving of poor quality milk) such that it has a shelf life of about 90 days. What? Your milk has an expiration date comparable to real milk? Your store is putting it out in that time frame so you’ll think it’s fresher than regular milk!
“Free range?” Not monitored, and the male chickens are still killed in the same ways. The range is a small enclosure, unable to fit more than a few chickens at a time. Most don’t get that time at all. Sorry, if you’re not into animals being treated cruelly, better to be a vegetarian. Organic and free range animals suffer as much, if not more, than on commercial farms.
Well surely organic produce is better, right? Nope. Organic production is far less efficient than modern methods, so organic farmers use more natural and man-made resources (i.e. land and fuel) to produce their crops. Not to mention that most organic products are flown in from other countries. Why hello there, carbon footprint!
Your best bet for the environment is to buy locally-grown or locally-produced. But don’t fool yourself into thinking that organic is healthier or better for animals or more environmentally friendly. You’ve just bought into the hype.
loading....
As for Hawken asking us to not ‘attempt to legislate’ supporting local and organic farmers: The large farmers DO legislate for their favor. This is why corn-based and soy-based products can be so cheap, because they are government-subsidized.
Why not subsidize small organic farmers instead if that is something our society agrees is important enough to subsidize?
loading....
“If showing our support for the environment is painless, are we really showing our support?”
The best way to support a cause is to make it easy for people who don’t care as much about the cause and won’t invest as much as you will.
It’s win-win, if you can pull it off: More people support your cause, even if you haven’t raised their actual concern. Since they can easily participate, the problem takes on a smaller size and they are more willing to care about it – since the problem now seems solvable. And you get the same ease or affordability that you’ve worked to bring to others.
Right now, affordable and convenient local produce is tough to come by. A site like LocalHarvest, however, helps people locate affordable local foods that often have convenient delivery. Pioneer Organics is a business that makes buying organic food easier and delivers (great for car-free living!), plus they clearly mark local foods as well.
And I think I’m going to try our old CSA again . . . thanks for the reminder, y’all!
loading....
Okay, so I hope I don’t sound like a jerk here, and I don’t want to discourage anyone who consumes responsibly. But I’m not sure that the best way to change the world is by changing our consumption patterns. I believe this thought may be a sad symptom of a world in which we believe that everything has to do with consumption. I think it probably has more to do with the way you treat people every day. Maybe shopping responsibly helps you support in a very indirect way the effort to make the world a better place, but you can support that effort more effectively by just being a decent, helpful person and being kind to other people you encounter in your daily life. I feel this is actually much more difficult and more important than changing what we buy, although I won’t criticize the genuinely good sentiments that are often behind this type of behavior.
loading....
As for Hawken asking us to not ‘attempt to legislate’ supporting local and organic farmers: The large farmers DO legislate for their favor. This is why corn-based and soy-based products can be so cheap, because they are government-subsidized.
There are organic corn and soybean farmers and there are eligible for the same support as non-organic. It is by crop and not method of production. BTW there are some organic farmers who are larger than non organic. Size does not determine method of production either.
loading....
Be self-actuating as opposed to regulated or morally mandated
Revisiting this post, it occurs to me that sometimes things must be morally mandated in our society. The proper treatment of the animals we eat, for instance.
If we simply rely on the companies to do right, it will never happen. We live in a Milton Friedman society, where corporations have been told for years and years by our most “free-market” leaders that their only responsibility is to earn money, regardless the harm they may cause. If we want corporations to do the right thing in this day and age, it MUST be mandated or it will not happen. We have seen this again and again over the last 8-10 years. Must we list the constant reminders? Start with Enron and work your way down…
loading....
My feeling is that you should have gone with the conventional California honey and not the organic Brazilian honey. CA practically local to OR. BUT, There was an interesting article in the New Yorker discussing the idea of carbon footprints and the problems trying to measure them. Relevant to this discussion were several scenarios (some involving Great Britain as I recall) where the carbon generated by local produce was actually greater than the carbon from imported produce, even from places as distant as New Zealand or Africa, because those more fertile lands require less carbon intensive farming. Similarly in New York city, the carbon footprint of wine from France is less than that from California.
http://www.newyorker.com/reporting/2008/02/25/080225fa_fact_specter
loading....