Files
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.