First: take any product on earth and imagine producing a better-but inherently more expensive-version of it. Now imagine marketing it. You don't have to be a whiz in economics to conclude that your target market will be a relative minority who values that product enough to pay more for a higher quality version. As a savvy producer, you will never lose sight of the fact that the core value of your product derives as much from the higher costs of production as the virtuous connotations your loyal followers confer on the commodity. As a sober producer, you will also never lose sight of the fact that your market will always be a small one compared to the millions upon millions of consumers who will remain perfectly happy with the cheaper mainstream version of the same commodity.
Second: take animal products made from animals raised on pasture and think about their place in the global meat market. These goods are inherently more expensive to produce: nothing you do as a producer to reduce costs will compete with the mainstream version. This fact is due to an inescapable reality: consolidating animals into CAFOs-even when the externalities are considered-is cost effective. The product is cheaper. The reasons confinement is more efficient are numerous: you need less land, you are less reliant on independent variables such as weather, the animals reach slaughter weight faster, you can benefit from mechanization, you can capitalize on scale economies, and so on. Given the costs of production, the price of grass-fed anything will, on balance, always be higher. Whether we're talking about houses or cows, density pays.