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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
    DOI: 10.22004/ag.econ.242448
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    Cited by:

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    3. Matthias Staudigel & Aleksej Trubnikov, 2022. "High price premiums as barriers to organic meat demand? A hedonic analysis considering species, cut and retail outlet," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 309-334, April.
    4. Meilin Ma & Carson Reeling & Megan N Hughes & Shalamar Armstrong & Richard Roth, 2023. "Comparison of conservation instruments under long-run yield uncertainty and farmer risk aversion," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(5), pages 1685-1714.
    5. Syed Badruddoza & Andrea C. Carlson & Jill J. McCluskey, 2022. "Long‐term dynamics of US organic milk, eggs, and yogurt premiums," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 45-72, January.
    6. Yuting Liu & Abdoul G. Sam, 2022. "The organic premium of baby food based on market segments," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 533-556, July.
    7. Tatiana Drugova & Kynda R. Curtis & Sherzod B. Akhundjanov, 2020. "Are multiple labels on food products beneficial or simply ignored?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 411-427, December.
    8. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," Economic Research Report 327183, United States Department of Agriculture, Economic Research Service.
    9. Sohae Eve Oh & Tomislav Vukina, 2018. "Substitutability between organic and conventional poultry products and organic price premiums," Economia agro-alimentare, FrancoAngeli Editore, vol. 20(1), pages 75-92.
    10. 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.
    11. Lesly Cassin & Paolo Melindi-Ghidi & Fabien Prieur, 2021. "Voting for environmental policy with green consumers: the impact of income inequality," CEE-M Working Papers hal-03146526, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    12. 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.
    13. Wilson, Lacey & Lusk, Jayson L., 2020. "Consumer willingness to pay for redundant food labels," Food Policy, Elsevier, vol. 97(C).
    14. Ishwari Singh Bisht & Jai Chand Rana & Rashmi Yadav & Sudhir Pal Ahlawat, 2020. "Mainstreaming Agricultural Biodiversity in Traditional Production Landscapes for Sustainable Development: The Indian Scenario," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
    15. Feliu López-i-Gelats & Jordi Bartolomé Filella, 2020. "Examining the role of organic production schemes in Mediterranean pastoralism," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5771-5792, August.
    16. Zahniser, Steven & Avendaño Ruíz, Belem & Astill, Gregory, 2023. "How Mexico’s Horticultural Export Sector Responded to the Food Safety Modernization Act," Economic Research Report 338954, United States Department of Agriculture, Economic Research Service.
    17. Carlson, Andrea C. & Waldrop, Megan, 2018. "Estimating Retail Organic Price Premiums for Snack Foods Using Scanner Data from 2013 to 2016," 2018 Annual Meeting, August 5-7, Washington, D.C. 274053, Agricultural and Applied Economics Association.
    18. Carlson, Andrea & Greene, Catherine & Raszap Skorbiansky, Sharon & Hitaj, Claudia & Ha, Kim & Cavigelli, Michel & Ferrier, Peyton & McBride, William, 2023. "U.S. Organic Production, Markets, Consumers, and Policy, 2000-21," USDA Miscellaneous 333551, United States Department of Agriculture.
    19. Page, Elina T & Short, Gianna & Sneeringer, Stacy & Bowman, Maria, 2021. "The Market for Chicken Raised Without Antibiotics, 2012–17," Economic Information Bulletin 327364, United States Department of Agriculture, Economic Research Service.

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