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An analysis of the California market for organically grown produce

Published online by Cambridge University Press:  30 October 2009

Jacques Franco
Jacques Franco
Affiliation:
Former Graduate Student, Graduate School of Management, University of California, Davis, CA 95616.
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Abstract

The market value for organically grown produce in California was estimated to be at least 54 to 68 million dollars at wholesale prices in 1987. This market is rapidly growing. A 41 percent increase in the value of organically grown produce was observed in 1987. When this analysis was completed in early 1988, it was estimated that the wholesale value of the market could exceed $300 million by 1992. A sample analysis of 1986–1987 price and volume for organically grown broccoli showed relatively steady prices and a volume increase of over 50 percent, indicating a similar growth in market demand. Prices for organically grown produce are significantly higher than for conventional produce; however, in spite of high weekly volume volatility, organic prices appear to be less volatile than prices for conventional produce. This paper proposes that the collection, reporting, and analysis of organic produce market data be continued and improved and that new sources of data be integrated to ensure continued availability of timely market information. Availability of more market information should increase efficiency and aid the development of the organic produce industry. The paper also proposes that overall trends in the organic produce industry be systematically monitored by Federal-State Market News and that the increased use of market information by organic growers, growers considering the transition, and other interested parties in the industry be promoted.

Keywords

conventional produceorganic producebroccoliprice premiumstransition growerswholesalersmarket size
Type
Articles
Information
American Journal of Alternative Agriculture , Volume 4 , Issue 1 , March 1989 , pp. 22 - 27
Copyright
Copyright © Cambridge University Press 1989

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