Price Differences across Farmers' Markets, Roadside Stands, and Supermarkets in North Carolina†

  • Valpiani, Natalie H.
  • Wilde, Parke E.
  • Rogers, Beatrice L.
  • Stewart, Hayden G.

Natalie H. Valpiani is an adjunct instructor, Parke E. Wilde is an associate professor, and Beatrice L. Rogers is a professor, all at the Friedman School of Nutrition Science and Policy, Tufts University. Hayden G. Stewart is an agricultural economist at the Economic Research Service of the USDA.

*Correspondence may be sent to: [email protected].

Submitted November 8, 2013; December 22, 2014; accepted May 19, 2015; Advance Access publication on June 30, 2015

†Any opinions, findings, recommendations, or conclusions are those of the authors and do not necessarily reflect the views of the Economic Research Service, U.S. Department of Agriculture.

Applied Economic Perspectives and Policy 38(2):p 276-291, June 2016. | DOI: 10.1093/aepp/ppv018

Abstract

Whether direct farmer-to-consumer outlets compete with supermarkets on produce prices remains an empirical question; marketing costs are not consistently higher in one retail channel or the other. This study compared prices of 29 fruits and vegetables across North Carolina farmers' markets, roadside stands, and supermarkets. Larger farmers' markets had higher prices: three fruits and one vegetable were cheaper at a direct outlet, while four vegetables were cheaper at supermarkets. Weighting item prices by consumption share attenuated differences in mean price across outlets. Direct-retail outlets are price competitive and should be considered among other tools to boost fresh fruit and vegetable intake.

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