Daily Local News (West Chester, PA)

Organic price premiums dip as demand grows, choices multiply

- By Dee-Ann Durbin AP Business Writer

DETROIT >> U.S. shoppers are still paying more for organic food, but the price premium is falling as organic options multiply.

Last year, organic food and beverages cost an average of 24 cents more per unit than convention­al food, or about 7.5 percent more, according to Nielsen. That was down from a 27 cent, or 9 percent, premium in 2014.

There’s a lot of variation within those numbers. The average price for a gallon of organic milk — $4.76 — is 88 percent higher than the $2.53 shoppers pay for a gallon of regular milk. Organic eggs have an 86 percent premium. At $4.89 per loaf, organic bread is double the cost of regular bread.

Parents buying organic baby food, on the other hand, pay just 3 percent more than they would for convention­al baby food. In mid-January, a bunch of organic kale was 5 percent more than organic kale, according to the U.S. Department of Agricultur­e. Some organic products — like artichokes, soy milk and Granny Smith apples — may even cost less than their convention­al counterpar­ts.

There are many shifting factors behind the prices for organic foods. Premiums for milk and eggs tend to be much higher, for example, because the government has very specific rules for what “organic” means. For example, cows producing organic milk must be allowed to graze for at least one-third of their food intake, says Jeremy Moghtader, the manager of the campus farm at the University of Michigan.

The rules “have real benefits to the animal, the consumer and environ-

In some cases, organics are breathing life back into dusty grocery aisles. Sales of convention­al lunchmeat and cheese at the deli counter had been weakening, since consumers didn’t want to wait for them to be sliced. But buyers seeking fresh, organic options are returning to the deli.

 ?? WILFREDO LEE - THE ASSOCIATED PRESS PHOTO ?? In this Jan. 21 photo, regular iceberg lettuce, lower left, selling at $3.19 each, is displayed next to organic iceberg lettuce selling at $4.19 each, at a grocery store in North Miami, Fla. U.S. shoppers are still paying more for organic food, but the price premium is falling as organic options multiply.
WILFREDO LEE - THE ASSOCIATED PRESS PHOTO In this Jan. 21 photo, regular iceberg lettuce, lower left, selling at $3.19 each, is displayed next to organic iceberg lettuce selling at $4.19 each, at a grocery store in North Miami, Fla. U.S. shoppers are still paying more for organic food, but the price premium is falling as organic options multiply.

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