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Changes in Retail Organic Price Premiums from 2004 to 2010

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  • Carlson, Andrea
  • Jaenicke, Edward

Abstract

Organic foods are one of the most rapidly growing sectors of the retail food market. This study applies a hedonic model to 2004-10 Nielsen Homescan data to estimate the organic price premiums for 17 products. Eggs and dairy products generally have the highest premiums, while fresh produce has the widest spread of premiums (ranging from 7 percent of the nonorganic price for spinach to 60 percent for salad mix). Processed food premiums range from 22 percent for granola to 54 percent for canned beans. The strong organic premiums, combined with increased sales, suggest that there is continued room for growth in the organic supply.

Suggested Citation

  • Carlson, Andrea & Jaenicke, Edward, 2016. "Changes in Retail Organic Price Premiums from 2004 to 2010," Economic Research Report 242448, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:242448
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    File URL: http://ageconsearch.umn.edu/record/242448/files/ERR209.pdf
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    1. repec:fan:ecaqec:v:html10.3280/ecag2018-001005 is not listed on IDEAS
    2. Seufert, Verena & Ramankutty, Navin & Mayerhofer, Tabea, 2017. "What is this thing called organic? – How organic farming is codified in regulations," Food Policy, Elsevier, vol. 68(C), pages 10-20.
    3. Staudigel, Matthias & Trubnikov, Aleksej, 2018. "How do organic price premiums vary across different supply and demand side factors? A hedonic analysis of the German market for fresh meat," 2018 Annual Meeting, August 5-7, Washington, D.C. 273989, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Agribusiness; Community/Rural/Urban Development; Demand and Price Analysis; Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; Marketing;

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