| Price premiums are recognized as a central barrier for the diffusion of organic food. On average, the consumer has to pay about 50 % more for organic food than for comparable products. This is also true for large retailers although considerable economies of scale could be expected. Against this background the following article analyzes pricing strategies of supermarkets. It appears evident that higher prices of organic food reflect higher costs of production and lower output, but primarily this is due to inefficient structures in processing and marketing. Furthermore, the pressures of competition in the market are low; price reductions and bargain sales are avoided by competitors. If the premium prices are compared with the results of market research, a... |
