On its website, Western Growers shows the difference between farm prices and retail prices for a number of fresh produce commodities. This price spread is the difference between what farmers are paid and what the consumer pays. The markup percentage ranges from 50 to 400, depending on the fresh produce variety.“These prices are an informational opportunity for consumers and stakeholders to educate them on the supply chain pricing structures in the produce industry,” says Jeff Janas with Western Growers. “We have been putting this together for 20 years and believe the Index provides useful information in allowing consumers to develop a better understanding of a farmer’s price at point of production versus the cost of their fresh produce at point of purchase.”
The markup of relatively inexpensive products is higher than the markup of produce varieties that have a relatively high farm price to begin with. In grocery stores in Atlanta, Chicago, Los Angeles and New York, Romaine lettuce was on average 463% higher priced than at the farm level on July 24 of this year. The farm price was $0.31. Avocados on the other hand, registered a farm price of $1.21 and the average markup was 34.3% during the same time period.
“The Index is meant to be a snapshot of certain fruits and vegetables as it is not possible to show the several hundred fresh produce varieties that are being grown,” shared Janas. Commodities tracked in the Index are adjusted based on the season.
USDA Market News Reports is the source for farm gate prices and retail prices are sourced from US Marketing Services.
For more information:
Jeff Janas
Western Growers Association
Tel: 949-885-2318