Getting Real About the High Price of Cheap Food

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One model for how the new paradigm could work is Niman Ranch, a larger operation that Bill Niman founded in the 1990s, before he left in 2007. (By his own admission, he's a better farmer than he is a businessman.) The company has knitted together hundreds of small-scale farmers into a network that sells all-natural pork, beef and lamb to retailers and restaurants. In doing so, it leverages economies of scale while letting the farmers take proper care of their land and animals. "We like to think of ourselves as a force for a local-farming community, not as a large corporation," says Jeff Swain, Niman Ranch's CEO.

Other examples include the Mexican-fast-food chain Chipotle, which now sources its pork from Niman Ranch and gets its other meats and much of its beans from natural and organic sources. It's part of a commitment that Chipotle founder Steve Ells made years ago, not just because sustainable ingredients were better for the planet but because they tasted better too — a philosophy he calls Food with Integrity. It's not cheap for Chipotle — food makes up more than 32% of its costs, the highest in the fast-food industry. But to Ells, the taste more than compensates, and Chipotle's higher prices haven't stopped the company's rapid growth, from 16 stores in 1998 to over 900 today. "We put a lot of energy into finding farmers who are committed to raising better food," says Ells.

Bon Appétit Management Company, a caterer based in Palo Alto, Calif., takes that commitment even further. The company sources as much of its produce as possible from within 150 miles of its kitchens and gets its meat from farmers who eschew antibiotics. Bon Appétit also tries to influence its customers' habits by nudging them toward greener choices. That includes campaigns to reduce food waste, in part by encouraging servers at its kitchens to offer smaller, more manageable portions. (The USDA estimates that Americans throw out 14% of the food we buy, which means that much of our record-breaking harvests ends up in the garbage.) And Bon Appétit supports a low-carbon diet, one that uses less meat and dairy, since both have a greater carbon footprint than fruit, vegetables and grain. The success of the overall operation demonstrates that sustainable food can work at an institutional scale bigger than an élite restaurant, a small market or a gourmet's kitchen — provided customers support it. "Ultimately it's going to be consumer demand that will cause change, not Washington," says Fedele Bauccio, Bon Appétit's co-founder.

How willing are consumers to rethink the way they shop for — and eat — food? For most people, price will remain the biggest obstacle. Organic food continues to cost on average several times more than its conventional counterparts, and no one goes to farmers' markets for bargains. But not all costs can be measured by a price tag. Once you factor in crop subsidies, ecological damage and what we pay in health-care bills after our fatty, sugary diet makes us sick, conventionally produced food looks a lot pricier.

What we really need to do is something Americans have never done well, and that's to quit thinking big. We already eat four times as much meat and dairy as the rest of the world, and there's not a nutritionist on the planet who would argue that 24‑oz. steaks and mounds of buttery mashed potatoes are what any person needs to stay alive. "The idea is that healthy and good-tasting food should be available to everyone," says Hahn Niman. "The food system should be geared toward that."

Whether that happens will ultimately come down to all of us, since we have the chance to choose better food three times a day (or more often, if we're particularly hungry). It's true that most of us would prefer not to think too much about where our food comes from or what it's doing to the planet — after all, as Chipotle's Ells points out, eating is not exactly a "heady intellectual event." But if there's one difference between industrial agriculture and the emerging alternative, it's that very thing: consciousness. Niman takes care with each of his cattle, just as an organic farmer takes care of his produce and smart shoppers take care with what they put in their shopping cart and on the family dinner table. The industrial food system fills us up but leaves us empty — it's based on selective forgetting. But what we eat — how it's raised and how it gets to us — has consequences that can't be ignored any longer.

— With reporting by Rebecca Kaplan / New York

The original version of this article mistakenly referred to the Bon Appétit Management Company as the Bon Appétit Food Management Company