Produce Price Index

PRICE PAID TO FARMERS

Prices represent open (spot) market sales by first handlers on product of generally good quality and condition unless otherwise stated and may include promotional allowances or other incentives. No consideration is given to after-sale adjustments unless otherwise stated. Brokerage fees paid by the shipper are included in the price reported. This price excludes all charges for freight to final destination. These prices are obtained from the Fruit and Vegetable Market News, Federal-State Market News Service, USDA daily and average for week.

PRICE SPREAD

The "Price Spread" on the produce market is the percentage of markup by the retailer. For example, on Broccoli Bunches per lb. assume the "Price Paid to Farmer" is $0.72 and the "Retail Price" for Atlanta is $1.48. The amount of markup is the difference between those two prices or $0.76 (Retail Price minus Price Paid to Farmer). The "Price Spread" is the markup ($0.76) divided by the "Price Paid to Farmers" ($0.72) which is 1.055. This number is multiplied by 100 and rounded to give a percentage of 105.06% – the "Price Spread".

This document is for information purposes only, in order to increase market transparency.

Sources:

• USDA Market News Reports for Farm Gate Prices.
• U.S. Marketing Services for Retail Prices.