The price of plant-based foods is influenced by the price of me

The competition in the plant-based food industry is far more than just about taste, texture, or marketing. Price is the core factor that determines whether it can truly break through. Although plant-based meat products have achieved price parity in some markets in recent years, and have even been briefly cheaper than traditional meat, on the whole, consumers still tend to choose animal meat with a lower price. And this price advantage does not only come from breeding efficiency, but is the result of long-term shaping by government subsidies and the market system.

Why is the price of meat so low?

In supermarkets, consumers may not be aware that the market prices of the beef, pork, and chicken they buy often do not truly reflect the production costs.

Arild Skedsmo, a senior analyst at KLP, pointed out that the environmental impact of the meat industry has not really been factored into the price. More importantly, globally, the meat industry is often supported by government subsidies to ensure food supply and agricultural employment. For example, in the European Union, agricultural subsidies are part of the Common Agricultural Policy (CAP). Although the EU has recently promised to adjust the subsidy system to be more targeted, the model of large-scale production of cheap meat has not changed.

Should the market reflect the true cost of meat?

Skedsmo believes that a reasonable solution is to make the market price of meat closer to its true production cost.

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