PRICE FORMATION IN ORGANIC PRODUCTION

Abstract

Organic products pass through many stages until they are delivered from the producer to the consumer. At this point, the cost factors affecting the price come into play. In this context, the cost of the transition period is primarily effective. The costs incurred during the transition period are reflected in the price before the products obtained during this period are introduced to the market and accepted as organic products. Similarly, low supply of organic products compared to demand and high input cost of organic products are the determining factors in price formation. In this study, price formation in organic production is discussed in terms of cost, producer, consumer, government factor and other factors. At this point, the factors affecting price uncertainty were evaluated in the context of Turkey. In the study, the literature, statistical data and the findings obtained by the researchers were used. As a result of the study, it was determined that the factors such as the transition cost of organic production in price formation, political and economic decisions, climate conditions, support money paid to organic producers by the government, technical assistance, subsidies, lack of promotion, inadequate market network, global events in the world, length of production process, changes in exchange rates, demand increase or decrease, high transportation costs, loss of product, increase in diesel prices, lack of demand, low number of producers, lack of sufficient capital and consumer behavior were effective in price formation of organic production.