Sunday, January 29, 2017

Organic Production

Are we the only ones who scour the produce department of grocery stores to compare organic vegetables ... and their prices ... with our own?

And when you see a sign for a Farmer's Market, do you stop to take a look ... and have a visit with the growers?

Sale price is $1.98 per pound for USDA Certified Organic apples
These were grown in Washington, where 60% of the apples
in the USA are produced.

Price is $2.99 lb.
And some of us even capture the images on our handy phone cameras.

The price is $4 lb. for USDA Certified Organic Potatoes
From Trader Joe's
So how do we price the certified organic produce we grow on our farm? We have been relying more and more on calculations that help us figure out the actual costs of production. As a result of that work, we have come to the conclusion that there are vegetables we have grown for sale in the past that cannot be sold at a price that compensates us for the cost of production.  And there are others that can be profitable if we pay attention to the variables.

The USDA has the following advice for organic growers regarding pricing:

"Your pricing strategy speaks volumes about your business. You will quickly earn a reputation as fair and ethical if you have a good pricing strategy. The alternative is to be known as cheap, dishonest and desperate among consumers and competitors. Your pricing strategy should be consistent, accurate and reliable. Many people want farmers to have a good quality of life and are willing to pay a fair price for quality products, so price according to what you are spending and add a reasonable markup."
Buying directly from the farmer - either at the farm or at Farmers' Markets puts all profit into the hands of the farmer.

From a Farmers' Market in a nearby town

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