Master of Science
Department or Program
Organic products, especially fruits and vegetables are becoming more popular in both their production and consumption. This study analyses the price premium of organic over conventional specialty crops at the retail market level. Data from the USDA’s Agricultural Marketing Service (AMS) custom average tool (CAT) was used. The main focus of this study is regional premium differences. Controls for seasonal differences, variety, and unit of sale differences were also included in the model. Regional differences can play a huge role in the price premium. Apples and tomatoes show the highest premium in Southwest region, 0.141 percentage points and 0.286 percentage points respectively. This study suggests that organic apples and tomatoes are more valuable in this region.