Price Premiums for Organic Strawberries

Carroll, Christine, Diane Charlton, and Emilia Tjernström

from ARE Update Vol. 15, No. 6, Jul/Aug, 2012 Special Report: Marketing Issues and Opportunities in Organic Agriculture

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Abstract

Organic strawberries command a price premium averaging $0.61 per pound at the farmgate and $1.00 per pound at the retail level. Using weekly time series data for the past five years, we find that we cannot explain retail price premiums as a function of farmgate price premiums. This suggests that much of the variation in organic premiums paid by consumers is derived from changes in marketing costs rather than costs of production incurred by the farmers or changes in the supply of organic produce.

Keywords

organic and conventional price differences, retail price premiums, price premia

Citation

Carroll, Christine, Diane Charlton, and Emilia Tjernström. "Price Premiums for Organic Strawberries." ARE Update 15(6)(2012):12-14. University of California Giannini Foundation of Agricultural Economics.
https://giannini.ucop.edu/publications/are-update/issues/2012/15/6/price-premiums-organic-st/