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Study Finds Supermarkets Charge Far Higher Margins on Organic Produce

Consumer data showing double-digit markup differences risks fresh political pressure for limits on retail pricing.

Overview

  • A consumer association report published May 27–28 found supermarkets apply an average 81% higher gross margin to organic fruits and vegetables than to conventional equivalents.
  • The study gives product examples that show higher retail prices but smaller shares for farmers, noting tomatoes sell for about €5.84/kg organic versus €3.26/kg conventional while farmers receive roughly 37% of the organic price versus 47% of the conventional price.
  • Que Choisir ensemble estimated an annual household cost of €732 for organic fruits and vegetables versus €460 for conventional items, which it calls a 'double penalty' of higher production costs plus opportunistic retailer margins.
  • Retailers and their federation have disputed the analysis, saying higher organic prices mainly reflect greater costs for production, logistics and cold storage rather than excessive margin-taking.
  • The study follows a Senate inquiry that flagged large retailers' share of the food bill and has prompted consumer groups to demand emergency pricing rules and closer regulatory scrutiny of supermarket margins.