Cost of organic food tracked on Web site

Maybe you'd like to buy those organic apples or that organic broccoli you see at the supermarket, but their prices change your mind.

Retail prices for organic produce aren't likely to drop dramatically in the near future, but at least we can all soon get a peek, through a new Web site, at how much Northwest organic farmers actually receive for their produce.

And that, in the long run, could help narrow the retail price gap between organic and conventionally grown food, says the site's sponsor, the nonprofit Rodale Institute, which researches and advocates organic farming.

The price index, to be launched Tuesday at www.newfarm.org, is aimed at helping organic farmers set competitive prices for their products by comparing average organic wholesale prices — the amount farmers receive — with those of conventional foods.

But anyone can access the site, which could interest consumers who wonder how much of what they pay for organic or conventional foods goes to the growers.

Initially, the Rodale index will list wholesale produce prices for the Northwest and the Northeast. Later, it's to include other regions of the country and other organic foods: dairy, grains, meat and poultry.

"Eventually, (the index) will help bring closer together the wide price spreads that currently exist between most organic and conventional foods and often among organic foods themselves," said a Rodale statement. "High retail prices have been one result of the lack of widely known organic pricing information."

Though sales of organic foods — those grown without synthetic pesticides or fertilizers — still represent only about 2 percent of the retail food market, consumer interest is rising. Organic sales have climbed a brisk 20 percent to 24 percent annually for several years.

Organics reached a major milestone in 2000, says the U.S. Department of Agriculture. That year, for the first time, organic sales in mainstream supermarkets outstripped those in any other venue, including natural-foods stores and farmers' markets.

Americans do most of their food shopping in supermarkets. That's where organics experts see the most growth potential — and where price gaps with conventional produce are most glaring. A few examples seen recently at an Eastside supermarket drive home the point: Organic green cabbage was $1.79 per pound, conventional green cabbage 69 cents per pound. Organic broccoli was $1.99 per pound, conventional broccoli $1.39. Organic Gala apples were $1.99 per pound, conventional Gala apples $1.59.

You couldn't call those price spreads typical, though, because nobody really knows. Experts say no one is systematically tracking organic retail prices.

"I think the price gap varies with each commodity. It depends on the market, weather conditions" and other factors, said Diane Dempster. She's an organics specialist with Seattle produce distributor Charlie's Produce and a board member of Tilth Producers, an association of Washington organic growers.

Sometimes the price for an organic commodity dips close to that of a conventional counterpart, said Dempster. And some rare supermarkets equalize most organic and conventional produce prices, item for item. Overall, Dempster believes the retail price gap has narrowed in recent years. In any case, surveys show the average consumer will tolerate a 10 percent to 15 percent price premium for organic produce, said David Granatstein, a sustainable-agriculture specialist with Washington State University.

"If it gets above that, it seems to be a barrier," he said.

The price spread has various causes. For instance, the process of changing from conventional to organic farming can be costly, and organic methods are often labor-intensive.

But as an organic farmer gains experience, costs tend to fall. In the long run, the Rodale Institute says, organic farming's profits can top those of conventional farming, potentially lowering prices.

Stores point to higher costs for handling organic produce. But some farmers suspect stores' organic markups may exceed added costs. The Rodale wholesale-price index could give farmers a tool for pressuring stores to lower retail prices.

Of course, the index could also tell some farmers they're not charging enough, which could boost prices.

All of which skirts this basic question: Would a sharp drop in organic retail prices really be a good thing?

Low prices can mean trouble for organic farmers, as for other growers. As interest in organic foods rises and production increases, big growers are making it tougher for smaller farms to compete. Also, more grocery chains are consolidating, reducing their purchasing competition.

Farmers worry that resulting price cuts could push small or midsize growers off the farm, said WSU's Granatstein. This could decrease locally grown organic produce.

That's why consumers who support organic agriculture — for health or environmental reasons — don't always favor lower prices, he said. "For the hard-core organic consumer, price is not an issue. They don't care what it costs, they're going to buy it."

As for Rodale's new Web price index, the man who's running it, Greg Bowman, says he hopes it raises consumer confidence in organic prices.

"If they're confident that the prices they're seeing really reflect the costs to the farmer," he said, they might buy more organic fruits and vegetables.

Judith Blake: jblake@seattletimes.com