Question

In: Accounting

Provide TWO examples of effective use of “organic” labelling for products. Discuss why they are effective.

Provide TWO examples of effective use of “organic” labelling for products. Discuss why they are effective.

Solutions

Expert Solution

Organic labelling tells consumers about the ingredients and nutritional composition of packaged food for sale. Labels may also contain information about the conditions under which the food was produced. This labelling on products is controlled by different Government Agencies to protect the consumer's interest. Some labelling information is mandatory, while others are voluntary.

The effective use of "Organic" Labelling indicates the following":

It allows the customer or the consumer to know:

  • to protect the health and well being of consumers
  • know what ingredients are in the food
  • determine the relative amounts of each ingredient
  • determine how much of selected vitamins, minerals, and other nutrients a food contains. This information may be given either by weight OR as a percentage of a daily requirement value
  • examine foods for potential allergens, additives, or ingredients that they wish to avoid
  • learn about the conditions under which certain ingredients were produced (e.g. organic, free-range)
  • compare the price per unit volume or weight of similar products
  • determine if nutrients have been added or removed from the base food (e.g. enriched, reduced fat)

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