A more favorable pricing picture for organic produce

Organic fruits and vegetables are becoming a less costly category.

Prices for many selections are declining and helping to fuel more purchasing from the large base of inflation-weary and cost-conscious shoppers.

Fresh organic produce’s average per pound price of $2.82 for the 52 weeks ending Dec. 1 was a 1.9% decrease from a year earlier, reported Circana, a Chicago-based market research firm. Fruit prices fell 2.1% to $2.27, and vegetables prices declined 0.7% to $3.46.

In contrast, fresh conventional produce had an average price per pound of $1.76, a 0.3% increase. That includes $1.68 for fruit, a 1.6% increase, and $1.82 for vegetables, a 1.1% decrease.

Volume sales for fresh organic produce totaled 4.06 billion, up 7.2% from the year-earlier period, Circana reported. That includes a 10.1% volume sales increase for fresh fruit to 2.17 billion and a 4.1% volume boost for fresh vegetables to 1.88 billion. Dollar sales rose 5.1% to $11.5 billion.

Fresh conventional produce volume sales grew 3.3% during the period to 46.2 billion, including a 3.8% increase for fruit to 25.4 billion and a 2.7% gain for vegetables to 20.6 billion. Dollar sales rose 3.6% to $81.2 billion.

Organic produce with significant price decreases includes cucumbers (down 16.5%), apples (11.9%), oranges (4.8%), grapes (4.6%), and asparagus (3.6%).

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While increases in organic produce production and inventories are contributing to the lower costs, ongoing expenses remain steeper than for conventional growing, which is keeping many organic prices higher, analysts said.

Organic farming relies on natural soil management and crop protection methods and there typically are greater costs for natural inputs, labor, and capital, said Tom Chapman, co-chief executive officer of the Washington, D.C.-based Organic Trade Association.

Supply chain segregation generates additional expenses, and organic producers also lack the economies of scale of conventional growers, Chapman said. Further hampering production is the need to support weed and pest control without the use of toxic synthetic pesticides, which requires knowledge about, and investment in, alternative production methods, Chapman said.

“Many of these challenges are specific to crop type and geography, but all organic farmers need supportive policies in the Farm Bill and research priorities that address their needs,” he said. “Ensuring access to labor, appropriate technology, financing options, efficient supply chain distribution, and research support is essential for the organic sector’s growth and success.”

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Growers can help ease the strain by engaging with coalitions, advocacy groups, and political leaders to “ensure their voices are heard,” Chapman said.