Agriculture Reference
In-Depth Information
are the percent increase over conventional prices and are calculated by subtracting the
conventional price from the organic price and dividing the difference by the conventional
price. Than the price premiums were aggregated by the product groups and marketing
channels by simple arithmetic mean.
The average price premium estimated for the organic food products in Slovenia for the year
2009 was 87% with large variations between product groups and distribution channels. On
average the price premium for the aggregate “oils and fats” was 146%, following by
“vegetables” (104%) and “fruits” (88%). For some of these products we are able to compare
their individual price premiums with the EU15 estimates from the year 2002 (European
Commission, 2005). Potato, for example reached 143% price premium in Slovenia, whereas
in EU15 has ranged from 30% in Ireland to 170% in Greece. For apples the range of price
premiums in EU15 was even more extreme from 37% in Sweden to 283% in Portugal,
whereas in Slovenia it was 131% despite rather considerable domestic supply. Organic dairy
products were priced on average at 73% higher than conventional substitutes, whereas on
EU15 average the consumer price premium for organic milk was about 50%, with extremes
in Greece (129%), Portugal (124%) and Italy (117%).
Oils and fats
146
Beverages
52
Honney
32
Eggs
42
Dairy products
73
Cereals and bakery products
58
Vegetables
104
Fruits
88
TOTAL
87
0
20
40
60
80
100
120
140
160
Fig. 1. Price premiums for organic food and beverages in Slovenia (2009)
For eggs the price premium was relatively low (42%), which is probably affected the fact
that this sector is highly developed and efficient, but also proximity of the Austrian egg
producers and their attempts to enter the Slovenian market. Price premium for eggs in
Austria are at 25%, whereas in Denmark it is only 17% (European Commission, 2005). Again
price premiums were high in Greece (231%), Spain (208%), Portugal (136%) and Italy (121%).
The lowest price premium was found for organic honey which was on average 32% more
expensive than its conventional substitute. Honey quality and hence the prices are relatively
high in Slovenia and average consumers perceive conventional honey produced by small
Search WWH ::
Custom Search