t.d.decker at att.net
Mon Jul 19 06:36:43 PDT 2010
> Stefan wrote;
> Successful banana selling requires low cost to grow them and low labor
> and shipping in bulk.
> Not necessarily so. It is illegal to import bananas into Australia (to
> disease of course ;-P). All the bananas we get are grown here, our labour
> laws are very reasonable and our bananas are quite cheap (apart from a six
> month or so period a couple of years ago when a major banana growing
> was wiped out by a cyclone).
The current price on bananas in Oklahoma is .49 USD per avoirdupois pound
(or $1.08 per kilogram). That is approximately .56 AUD per avoirdupois
pound or 1.23 AUD per kilogram. Given that Oklahoma is a landlocked state
with a seaport, the price is likely to be a good working number for bananas
in the US (cheaper on the coasts, higher in the central plains and Rocky
Mountain west. So how do actual prices compare between Oklahoma and
Stefan's formula is the one used by the fruit growers to wring fabulous
profits out of the banana trade, but it neglects cost/value of refrigerated
transport and distance to market. Refrigerated transport minimizes
spoilage, essentially eliminating the primary cost of shipping. Bulk
shipping reduces the cost of refrigeration and transportation. Distance to
market determines the overall cost of the shipping.
Given the controlled economy in bananas and the shorter shipping distance, I
expect prices in Oz will be a little higher than in the US, but not
outrageous (if it were, the government protection would likely disappear).
I suspect that the banana growers make a moderate but steady profit in the
internal market (which keeps at home support for their business) and any
large profits are made by exporting to Japan and possibly Chile. It would
be interesting to see the financials.
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