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Penny campaign to investigate invisible environmental costs of production and consumption

Penny, together with the Technical University of Nuremberg and the University of Greifswald, is hoping to broaden the discussion about food prices by showing consumers the ‘true cost’ of products when factoring in sustainability. The discount retailer says it would like to show customers “clear options for action based on scientific calculations”.

From July 31st to August 5th, nine selected products have the calculated “true costs” as the sales price. This includes the cost of organic sausages has risen by 63% from €3.29 (US$3.61) to €5.36 (US$5.88), mozzarella from €0.89 (US$0.98) to €1.55 (US$1.7) and organic fruit yogurt with a 31% jumps to €1.56 (US$1.71).

Penny will donate the difference between the current market price and the true cost price to the future farmer. This is a joint project by Penny, the Berchtesgadener Land dairy, farmers and customers with the aim of making a contribution to climate protection and the preservation of family-run farms in the Alpine region.

In the true costs, the scientists included the impact of the factors of soil, climate, water and health on the sales price for selected conventionally and organically produced own-brand products as well as one vegan food.

Based on the calculations, the team led by Professor Tobias Gaugler and Dr. Amelie Michalke say the true costs are recorded in different proportions in the sales price for conventional, ecologically produced and vegan foods.

“We see that many of our customers are suffering from the persistently high food prices. Nevertheless, we have to face the uncomfortable message that the prices of our food, which are incurred along the supply chain, do not reflect the environmental costs. We want to create awareness for this with the national campaign on the true costs. We also want to show solutions together with the Technical University of Nuremberg and the University of Greifswald. For this purpose, we provide the scientists with comprehensive data material. There has never been a comparably broad approach anywhere in Europe. The science teams and Penny are doing real groundwork,” said Stefan Görgens, COO Penny, at a press conference.

Penny says a broader social discussion is required as in principle, the retailer sees the need to further intensify efforts for more sustainable food and thus reduce the environmental costs. A central challenge is that everyone must be able to afford high-quality food.

Prof. Tobias Gaugler from the Technical University of Nuremberg adds: “We receive comprehensive data about the campaign week, but also about comparison weeks and socio-demographic information. We can certainly gain valuable insights into purchasing behaviour and acceptance of the topic. From this, recommendations for action for the various actors can be derived, above all to design sensible political measures that contribute to a sustainable transformation of the food sector – for consumers and producers”.

“It’s not about immediately introducing the true cost of all food. There is a lack of comprehensive scientific foundations and answers to central questions of social justice. We hope for a strong impetus so that we can discuss and consider food prices in a different and (polluter-pays) fairer form,” adds Dr. Amelie Michalke, sustainability scientist at the University of Greifswald.

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