Organic Path microsite

This project was funded through the New Opportunities and Business Development Investment Initiative (NOBDI) under the Renewal Chapter of the Canada-Nova Scotia Agricultural Policy Framework Agreement.

Canada

Nova Scotia

Organic Premium

Price premiums are common in organic price structures. Generally, the average seems to be about 20% over conventional. This is a variable and should not be considered a definite.

In recent years, as supply increases, the premium for organics seems to be in decline. At a wholesale workshop, a representative from a large organic distributor recommended that producers try to achieve a profitable business where there was no guaranteed premium. She believe that in doing so, they would be the most competitive in the marketplace and have the greatest flexibility to respond to buyers. This strategy was not welcomed by producers; however, if a farm can remain competitive with conventional pricing (albeit a temporary strategy), there will never be any difficulty selling product.

Generally, consumers seem willing to pay 10-20% more than conventional for organic products. If selling directly, the premium will go directly into your pocket. If selling wholesale, there may be additional negotiations required to find a suitable middleground.