Organic Price Premiums Vary Widely

The USDA Agricultural Marketing Service (AMS) is now publishing a regular report that compares national prices for a range of organic foods with their conventional counterparts.  The report dated April 25, 2017, compares advertised prices at major retail supermarkets across the country drawing on over 300,000 different ads for produce alone. Premiums for organic ‘Gala’ and ‘Fuji’ apple, the two largest sellers, were 67% and 41% respectively when sold by the pound, but over 90% when sold as a 3-lb bag. The organic premium for a 2-lb bag of lemons was only 6%, and bananas 44%. Organic cauliflower cost 14% less than conventional by the pound, while organic broccoli cost 16% more. Organic Romaine lettuce hearts brought a 9% premium. For milk, organic half-gallons had a 62% premium while gallons had a 166% premium. One needs to look at the actual prices in many cases to understand this situation – organic milk cost $3.99 for a half gallon and $6.49 for a gallon, while conventional milk was $2.47 a half gallon and $2.44 a gallon. Organic large brown eggs had a 181% premium. Beef bottom round roast cost 9% less per pound for organic, while organic skirt steak cost 117% more. Organic chicken generally brought a 100-150% premium.