Change of Price Premiums Trend for Organic Food Products: The Example of the Polish Egg Market

Abstract

One of the most rapidly growing areas of the organic agricultural system is egg production. However, the price premium often decreases the affordability of organic foods. In this study, the production and sales of organic eggs in Europe were compared, the prices of organic and conventional eggs in Poland were analyzed, and the price premium on the Polish market was evaluated. This study relied on data of Eurostat, Statistics Poland, Agricultural and Food Quality Inspection and Ministry of Agriculture and Rural Development in Poland. The prices of organic and conventional eggs on the Polish wholesale market were analyzed based on the monthly price registers. The production and sales of organic eggs in Europe were characterized by a steady increase. The nominal and real prices of organic eggs were higher than the prices of conventional eggs throughout the entire analyzed period. The nominal prices of organic eggs tended to decrease. However, an upward trend was observed in the real prices of both organic and conventional eggs. The average price premium for organic eggs exceeded 128% (median of 121%). The price premium was characterized by moderate variation (Vc = 33%). In Poland, the price premium was on a downward trend by around 1% per month in the examined period.