A series of microplastic contamination scares in conventional polymer-based food packaging during 2023 dramatically shifted food manufacturers' preferences toward organic, bio-degradable alternatives. High concentrations of synthetic chemical plasticizers were discovered leaching from standard imported packaging into consumer food lines.
Because of this food safety scandal, the market share of domestic kelp-derived bioplastics in the Western European packaging sector rose from 12% to 18% over the course of 2023. Consequently, the farmgate price received by Norwegian coastal cooperatives for raw sustainably-harvested kelp rose by 14% in 2023.
Further upward pressure on prices is expected as marine biotech firms in Northern Europe increasingly seek direct supply contracts, viewing Norwegian kelp as a highly reliable, low-carbon input that meets stringent EU environmental standards.
Explain why 'the farmgate price received by Norwegian coastal cooperatives for raw sustainably-harvested kelp rose by 14% in 2023' (Extract B). Include a supply and demand diagram in your answer.
