The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study

In this study of the Western Australia apple industry, a pluralistic methodology was employed to provide an economic and social evaluation of the various trading relationships between growers and their preferred downstream market intermediaries. Rational economic theory suggests that growers will ch...

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Main Author: Mohd Nawi, Nolila
Format: Thesis
Language:English
Published: Curtin University 2009
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/805
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author Mohd Nawi, Nolila
author_facet Mohd Nawi, Nolila
author_sort Mohd Nawi, Nolila
building Curtin Institutional Repository
collection Online Access
description In this study of the Western Australia apple industry, a pluralistic methodology was employed to provide an economic and social evaluation of the various trading relationships between growers and their preferred downstream market intermediaries. Rational economic theory suggests that growers will choose to interact with those downstream customers who offer the highest prices. However, it is apparent that growers prefer to consign fruit to a number of different markets and different customers, in order to minimise risk. In selecting those downstream market intermediaries with whom they will transact, growers recognise that in order to conduct business, they must first satisfy the needs of their downstream customers. While the need to maintain a consistent supply of good quality fruit is paramount, this can result in a significant increase in costs and additional investments in infrastructure.As there are significant economies of scale in the production and subsequent packing, grading and storage of fruit, smallholder growers may find that it is more cost effective to sell the fruit they have produced to fruit packers. Furthermore, growers prefer to transact with those market intermediaries they trust. Trust is enhanced by the willingness of the market intermediary to share risks and market information in a timely fashion and to refrain from opportunistic trading practices. Nevertheless, given that growers are more certain of their costs than their returns, they may choose to transact with some market intermediaries, even although there is minimal trust in the exchange and they are subject to the exercise of coercive market power. In particular, many of the larger growers find it necessary to transact with the supermarkets in order to dispose of the volume of fruit they have available cost effectively.
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spelling curtin-20.500.11937-8052017-02-20T06:40:30Z The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study Mohd Nawi, Nolila trading relationships economic and social evaluation growers downstream market intermediaries Western Australia apple industry trust pluralistic methodology fruit packers In this study of the Western Australia apple industry, a pluralistic methodology was employed to provide an economic and social evaluation of the various trading relationships between growers and their preferred downstream market intermediaries. Rational economic theory suggests that growers will choose to interact with those downstream customers who offer the highest prices. However, it is apparent that growers prefer to consign fruit to a number of different markets and different customers, in order to minimise risk. In selecting those downstream market intermediaries with whom they will transact, growers recognise that in order to conduct business, they must first satisfy the needs of their downstream customers. While the need to maintain a consistent supply of good quality fruit is paramount, this can result in a significant increase in costs and additional investments in infrastructure.As there are significant economies of scale in the production and subsequent packing, grading and storage of fruit, smallholder growers may find that it is more cost effective to sell the fruit they have produced to fruit packers. Furthermore, growers prefer to transact with those market intermediaries they trust. Trust is enhanced by the willingness of the market intermediary to share risks and market information in a timely fashion and to refrain from opportunistic trading practices. Nevertheless, given that growers are more certain of their costs than their returns, they may choose to transact with some market intermediaries, even although there is minimal trust in the exchange and they are subject to the exercise of coercive market power. In particular, many of the larger growers find it necessary to transact with the supermarkets in order to dispose of the volume of fruit they have available cost effectively. 2009 Thesis http://hdl.handle.net/20.500.11937/805 en Curtin University fulltext
spellingShingle trading relationships
economic and social evaluation
growers
downstream market intermediaries
Western Australia apple industry
trust
pluralistic methodology
fruit packers
Mohd Nawi, Nolila
The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study
title The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study
title_full The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study
title_fullStr The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study
title_full_unstemmed The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study
title_short The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study
title_sort capability of apple growers in western australia to meet the needs of downstream market intermediaries: a case study
topic trading relationships
economic and social evaluation
growers
downstream market intermediaries
Western Australia apple industry
trust
pluralistic methodology
fruit packers
url http://hdl.handle.net/20.500.11937/805