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The Inefficiency of Local Food

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Submitted By pcnotarn
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My inclination on this particular article, which argues that local food production would prove costly and inefficient, is that the author is correct. If economics can be summed up as a study of how scarce resources are allocated, than the arguments made in the article against the establishment of local food production markets seem, at least given my limited economics knowledge, to hold water. As alluded to by the author of the article, the benefits associated with creating such local food production markets would not outweigh the costs. I agree with this basic premise given the arguments made in the article. While there would be benefits associated with creating a local market, the economics of it do not make good financial sense. Economies of Scale come to mind as there is clearly cost per unit of output advantages that our current industrial agriculture system makes possible. That savings is later passed on to society in the form of lower cost goods. Similarly, production efficiency is also realized by our current system as it allows for the higher output of specific crops originating from areas that are better climactically suited to allow for maximum growth/production. What we would be giving up as a society, or stated differently, the opportunity cost associated with moving to a “locavore-like” food production system would be too great to our economy and society. Furthermore, as the author pointed out, the health benefits associated with such a move would be minimal (if any). I cannot imagine any scenario where someone could argue this concept makes sense from an economic/cost perspective. If it is possible to make such as argument, I would be interested in seeing the math that follows it. As presented, I would have to agree with the author of this article. I cannot imagine the benefits of local food production outweighing that of our current industrial agricultural production system. In this case, the benefits (efficiency gains) of industrial agriculture outweigh equality gains to local cities. While there are benefits the local markets would enjoy with a move to a localized system, the bigger picture suggests that such a move would not benefit our society as a whole.

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