Made with Flourish

The premium paid for organic produce is a moving target, and it is far from standard for fresh produce commodities. Consider this chart, using data from the U.S. Department of Agriculture's Weekly Retail Organic Price Comparison, found here. It is only a snapshot in time, but it shows that beets had a huge organic premium, Honeycrisp apples had a modest premium and organic spinach actually was selling at a discount to conventional spinach. What is the sweet spot for organic premiums? Comments welcome...

 
Comments
Submitted by Craig Carlson on Tue, 12/04/2018 - 06:59

For an Organic item to become main stream, it needs to be consistently priced within 25% of conventional product.

Submitted by r henry on Tue, 12/04/2018 - 10:30

Last time I checked, fresh produce markets were free floating, with almost zero correlation between conventional and "organic" markets.

As such, there is no "standard" of cost differential, just as there is no "standard" price for a head of lettuce. Price is determined by supply and demand, not cost of production or any other objective metric.

How could anyone in the trade not understand this?