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Organic premiums of US fresh produce

Published online by Cambridge University Press:  30 June 2008

Biing-Hwan Lin ,
Travis A. Smith  and
Chung L. Huang
Biing-Hwan Lin
Affiliation:
Economic Research Service, US Department of Agriculture, Room N2110, 1800 M Street NW, Washington, DC, 20036-5831, USA.
Travis A. Smith
Affiliation:
Department of Agricultural and Applied Economics, The University of Georgia, Athens, GA 30602-7509, USA.
Chung L. Huang*
Affiliation:
Department of Agricultural and Applied Economics, The University of Georgia, Athens, GA 30602-7509, USA.
*
*Corresponding author: chuang@uga.edu
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Abstract

The study uses the 2005 Nielsen Homescan panel data to estimate price premiums and discounts associated with product attributes, market factors, and consumer characteristics, focusing on the organic attribute for five major fresh fruits and five major fresh vegetables in the United States. The results suggest that the organic attribute commands a significant price premium, which varies greatly from 13 cents per pound for bananas to 86 cents per pound for strawberries among fresh fruits and from 13 cents per pound for onions to 50 cents per pound for peppers among fresh vegetables. In terms of percentages, the estimated organic price premiums vary from 20% above prices paid for conventional grapes to 42% for strawberries among fresh fruits and from 15% above prices paid for conventional carrots and tomatoes to 60% for potatoes. Furthermore, prices paid for fresh produce are found to vary by other product attributes, market factors, and household characteristics.

Keywords

fresh fruits and vegetableshedonic priceorganic produceorganic premiumproduct attributesNielsen Homescan
Type
Research Papers
Information
Renewable Agriculture and Food Systems , Volume 23 , Issue 3 , September 2008 , pp. 208 - 216
Copyright
Copyright © 2008 Cambridge University Press

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