The Factors Influencing Terminal Market Prices of Organic Vegetables & Fruits: Illustrated by The Examples of Carrot, Broccoli, and Banana
Master of Science
Department or Program
This article studies the factors influencing the market price of organic fruits and vegetables. After several decades’ development, organic farming has become an important part of global agricultural markets, and besides, organic vegetables are also the largest part of organic sales. The study tends to find the significant factors that exert influence on the market. What’s more, carrot, Broccoli and Banana are the examples in the study. The results show that the increase of the market price of organic fruits and vegetables is influenced by the PPI, the number of stores, and the market price of non-organic fruits and vegetables, which is directive for the farmers who plant banana, carrot, and broccoli, and is especially conducive to their quarterly planting plan. The weak relationship between the market price and the retail price means the higher retail price fails to give enough support to increase the market price. Meanwhile, it proves that the higher market price may be caused by other reasons including higher production costs.