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To blame organics for food miles traveled is just plain ridiculous. Why not blame people's thirst for bananas and oranges and video games? While I agree that buying your produce locally is extremely important, not only in environmental impact but because you are supporting your neighbors, there is no reason people shouldn't demand both. Capitalism's only recourse for this is the wallet. If customer's are buying organic and the local farmer wants to have their products compete, well then they will have to switch to organic practices won't they?
The study seems to assume that the only environmental harm is CO2 produced in the transport of food, while ignoring the environmental damage done by pesticides and petroleum derived fertilizers.