Potato Board study shows wide range in potato pricing

A five-year study has revealed the lack of a “one size fits all” approach to fresh potato pricing, according to a United States Potato Board study released March 26.

The Nielsen Perishables Group study on price elasticity of the fresh potato market revealed a wide range of price sensitivity within the category and showed the relationship between price and consumer demand is difficult to determine. 

The research showed that larger bags of Russets are the least price sensitive and inelastic, meaning demand for these products generally remains steady despite price fluctuations. The rest of the category is more price sensitive, meaning demand rises or falls based on price fluctuations, typically depending on potato type and package size.

The study also revealed regional differences. The New England area is more price sensitive than the Pacific or Mountain regions. For example, a 10 percent increase in price of Fingerling/Medley/Purple potatoes 3 pounds or more in the non-holiday, price-strong period would result in a 43 percent decline in volume in the New England subregion but only a 26 percent decrease in volume in the Mountain sub-region.

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United States Potato Board Nielsen Perishables Group

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