Organic Premiums of U.S. Fresh Produce
AbstractThe 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 5 major fresh fruits and 5 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management in its series 2008 Conference, April 21-22, 2008, St. Louis, Missouri with number 37626.
Date of creation: 2008
Date of revision:
Contact details of provider:
Postal: 326 Mumford Hall, MC-710, 1301 West Gregory Drive, Urbana, Illinois, 61801
Phone: (217) 333-1810
Fax: (217) 333-5538
Web page: http://www.farmdoc.uiuc.edu/nccc134/
More information through EDIRC
fresh fruits and vegetables; hedonic price; organic produce; organic premium; product attributes; Nielsen Homescan; Agricultural Finance;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:jaa:jagape:v:34:y:2002:i:3:p:477-487 is not listed on IDEAS
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
- Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
- Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
- Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
- Gary D. Thompson & Julia Kidwell, 1998. "Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 277-287.
- Govindasamy, Ramu & Italia, John, 1999. "Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), July.
- Boland, Michael A. & Schroeder, Ted C., 2002. "Marginal Value Of Quality Attributes For Natural And Organic Beef," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
- Halvorsen, Robert & Pollakowski, Henry O., 1981. "Choice of functional form for hedonic price equations," Journal of Urban Economics, Elsevier, vol. 10(1), pages 37-49, July.
- Loureiro, Maria L. & Hine, Susan E., 2002. "Discovering Niche Markets: A Comparison Of Consumer Willingness To Pay For Local (Colorado Grown), Organic, And Gmo-Free Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(03), December.
- Mykel R. Taylor & Gary W. Brester, 2005. "Noncash Income Transfers and Agricultural Land Values," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 526-541.
- Lopez, Ramon E. & Yoon, Sang Won, 2013.
"Sustainable Economic Growth: Structural Transformation with Consumption Flexibility,"
142561, University of Maryland, Department of Agricultural and Resource Economics.
- Ramón López & Sang Won Yoon, 2013. "Sustainable Economic Growth: Structural Transformation with Consumption Flexibility," Working Papers wp375, University of Chile, Department of Economics.
- Berney, Gerald & Grajewski, Gregory & Hinman, Don & Prater, Marvin E. & Taylor, April, 2010. "Marketing Maine Tablestock Potatoes," Research Reports 147004, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
- Schrock, Rebecca, 2010. "Determinants Of The Demand For Organic And Conventional Fresh Milk In Germany– An Econometric Analysis," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116387, European Association of Agricultural Economists.
- Owusu, Victor & Owusu, Michael Anifori, 2010. "Measuring Market Potential for Fresh Organic Fruit and Vegetable in Ghana," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95955, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
- Probst, Lorenz & Houedjofonon, Elysée & Ayerakwa, Hayford Mensah & Haas, Rainer, 2012. "Will they buy it? The potential for marketing organic vegetables in the food vending sector to strengthen vegetable safety: A choice experiment study in three West African cities," Food Policy, Elsevier, vol. 37(3), pages 296-308.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.