Farm to retail price spread
 | This article needs more links to other articles to help integrate it into the encyclopedia. (March 2017) |
The farm to retail price spread is the difference between the farm price and the retail price of food, reflecting charges for processing, shipping, and retailing farm goods (sometimes called the marketing spread). The current spread accounts for about three-fourths of the retail price for a market basket of foods, according to USDA. The farm value varies for each type of food; for example, in 2004 it accounted for about 35% of the retail cost of eggs, compared to about 19% for fresh fruit and vegetables, and about 6% for cereal and bakery products.
References
This article incorporates public domain material from Jasper Womach. Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition (PDF). Congressional Research Service.