Marketing and Pricing of Biological Products in West Germany. A Comparative Study

Abstract

The marketing and pricing of biological products compared to conventionally produced food was investigated in southern Germany. 42 farmers (14 conventional, 14 bio-dynamic, 14 organic- biological) were surveyed. Four alternative marketing channels were examined. In contrast to conventional farms direct-marketing plays a major role in biological farms. The prices varied considerably within and between the different farming systems. By and large higher prices for biological products were only obtained for plant products. Occasionally premium prices for biological dairy products are possible. A “food-basket” calculation indicates that costs for the consumer of biological products purchased directly would be about 30% higher, which amounts to a 3% increase in total family expenditure. It is argued that the viability of biological farms cannot be calculated on the basis of retail prices.