The real cost of food is higher than its price

Published 2020년 9월 2일

Tridge summary

A study by the University of Augsburg reveals that the true costs of 16 own-brand products sold by the discounter Penny are on average 62% higher than the retail price, and 35% higher for organic alternatives, due to factors like nitrogen, greenhouse gases, energy use, and land use. The study suggests that surcharges of a few cents per kilogram could be needed to include the ecological impact, especially for fruits, vegetables, meat, and dairy products. Penny's parent company, Rewe Group, is considering the results and plans to pilot displaying the true costs in a Berlin Penny branch.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Sales prices of food do not reflect their ecological impact along the supply chain. Scientists from the University of Augsburg have now calculated the “real costs” for a total of 16 own-brand products of the retail chain on behalf of the discounter Penny, which belongs to the Rewe group. On average, they are around 62% higher than the current retail price, Penny himself reports from the study. For the alternatives from organic farming, the plus is around 35%. In these so-called “true costs”, the scientists have included the effects of nitrogen, greenhouse gases, energy and changes in land use on the sales price. The scientists used the following eight foods for the evaluation: apple, banana, potato, tomato, mozzarella, Gouda cheese, milk and mixed meat. Previous price discussion falls short. Based on the parameters examined, Dr. Tobias Gaugler and his team came to the conclusion that the previous price discussion did not go far enough, because the inevitable follow-up costs of ...

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