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Price Relations of Organic and Conventional Fruit and Vegetables

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  • Smoluk-Sikorska, Joanna

Abstract

The paper’s objective is to identify the level of organic fruit and vegetables prices compared to their conventional substitutes’ prices and determine the price premiums for organic products. In order to achieve this goal, prices of both types of food were quoted for 9 months (between October 2022 and June 2023) in various types of commercial outlets offering organic and conventional food located in the Poznań agglomeration. Each week, 60 price registers were created – 30 for organic food and 30 for conventional food. It allowed to calculate the average monthly prices of the investigated products and, based on that, the average price premiums for selected fruits and vegetables. The conducted study proved that generally, the prices of the investigated fruit and vegetables were relatively high and fluctuated similarly, in line with their seasonality and storage properties. The highest price premiums (over 100%) were noted for red beetroots, tomatoes, apples, and potatoes. The price premiums lower than 100% were observed for carrots, onions, bananas, and cucumbers. A decrease in price premiums compared to the former study has been observed, however the price premiums in the Polish market are still relatively high considering more mature organic food markets. This proves that there is a need for further research to improve the market infrastructure efficiency, which would lower the price of organic food.

Suggested Citation

  • Smoluk-Sikorska, Joanna, 2023. "Price Relations of Organic and Conventional Fruit and Vegetables," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(4).
    • Handle: RePEc:ags:paaero:340095
    DOI: 10.22004/ag.econ.340095
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    References listed on IDEAS

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    1. Adam Pawlewicz, 2020. "Change of Price Premiums Trend for Organic Food Products: The Example of the Polish Egg Market," Agriculture, MDPI, vol. 10(2), pages 1-22, February.
    2. Bissinger, Katharina & Herrmann, Roland, 2021. "Regional Origin Outperforms All Other Sustainability Characteristics in Consumer Price Premiums for Honey: Empirical Evidence for Germany," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 36(1), pages 162-184.
    3. Łuczka, Władysława, 2016. "The Changes On The Organic Food Market," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 42(4).
    4. Jessica Aschemann-Witzel & Stephan Zielke, 2017. "Can't Buy Me Green? A Review of Consumer Perceptions of and Behavior Toward the Price of Organic Food," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(1), pages 211-251, March.
    5. Philip Garland Gayle & Jin Wang & Shengnan Fang, 2023. "The Organic food price premium and its susceptibility to news media coverage: evidence from the US milk industry," Applied Economics, Taylor & Francis Journals, vol. 55(28), pages 3296-3315, June.
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