Best estimates by researchers at Ohio State are that organic food sales exceed $10 billion, with recent annual growth rates of 15 to 20 percent. That’s still only 2 percent of total U.S. food sales, but enough to capture the interest of more producers. What’s driving this growth? Professors Neal Hooker and Marvin Batte in AED Economics recently asked Ohio consumers why they buy (or don’t buy) organic. 51 percent say nutrition is their primary motive; followed by a desire for pesticide-free food, a desire to support environmentally-friendly agriculture, and an idea that organic foods taste better. Those who don’t buy say organic foods are priced too high; don’t like the taste or appearance; or have concerns about nutrition or safety of organic foods. Batte, Hooker and their students asked shoppers in urban, suburban and rural groceries what attributes of organic foods they’d pay most for. Pesticide-free foods caught the greatest premium (39 cents more per box of cereal); 100-percent organic content commanded a 32.5 cent premium; locally grown foods a 30.6 cent premium; and enhanced flavor was worth 26.6 cents. Reports and data from this research are on the researchers’ web pages or directly at http://aede.osu.edu/resources/docs/pdf/DL17AFRV-ZRD8-OWNK-R8ETVPJMEKVM6E64.pdf and http://aede.osu.edu/resources/docs/pdf/QYABMCT1-9VNX-GW1A-BAFBW09OXPEKM1K2.pdf
Note: “Research Update” will be a regular feature of this newsletter highlighting new and emerging research from OSU on agribusiness, management and related policy topics.