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Understanding the factors limiting organic consumption: the effect of marketing channel on produce price, availability, and price fairness

Abstract:

Organic food consumption is increasing globally but still comprises a small share of the overall food market. Our understanding of organic consumption is primarily based on consumer surveys, while we lack robust data on the actual price and availability of organic products in most countries. To address this gap, we conducted a case study where we collected data directly from produce sellers in Seville, Spain, to evaluate the extent to which price, availability, and farmer price fairness potentially limit organic consumption in marketing channels with short food supply chains (SFSCs) and long food supply chains (LFSCs). Price of a family produce basket was not significantly different between conventional LFSC and organic SFSC channels. Organic produce was more available in SFSC than LFSC channels by an average of 14 weeks. Price fairness, measured as farmers’ share of the value added, was higher in organic SFSC than organic LFSC and conventional LFSC channels. These results suggest that consumers in Seville can avoid the higher prices and lower availability of organic produce in supermarkets and ensure farmers greater revenue share by switching to organic SFSC channels like farmer-consumer cooperatives and direct sellers. However, the scarcity of such information for most products and markets limits consumers’ ability to ascertain the economic and social benefits of different channels. This study highlights the need for systematic data collection and sharing from different marketing channels to better inform consumers about their food purchasing options and improve understanding of the factors limiting organic consumption.