A General Assessment of the Retail Price Premiums of Organic Food Products in Türkiye

Abstract

Organic agricultural production has emerged as an alternative to conventional production and aims to promote a sustainable production approach based on the health of soil, the protection of nature and human well-being factors with an environmentally friendly production method. Organic production combines traditional knowledge with scientific innovation to benefit the natural environment and promote a higher quality of life for all. Organic agricultural products, which have gained significant market share globally and expanded into various markets, are mainly produced for export in Türkiye. The growth of the organic market depends on the balance between supply and demand. In this respect, the aim of this study is to examine the product market prices, which is a key factor affecting the purchasing behaviour of consumers in order to grow the organic market and reach the desired level. Price premiums were examined for the following food groups: cereals/legumes, fruit, vegetables, milk, dairy products and eggs, dried fruit and nuts. This study relies on secondary data and retail prices were collected through online websites. According to the results, the price premium, which was calculated by comparing the prices of organic and conventional versions of selected food products, was found to be in favour of organic products. This price premium was found to be particularly high for noodles, dry beans, buckwheat and rice from the cereals/legumes group; grapefruit, apple and pear from the fruit group and yellow chickpeas, pumpkin seeds from the nuts group. These results provide useful insights for food producers, marketers and policy makers when making decisions about organic food.