Banana promotion - the impact on prices in Brisbane, Sydney and Melbourne [Queensland; New South Wales; Victoria]
1990
Rutherford, A. (Queensland Dept. of Primary Industries, Brisbane (Australia). Marketing Services Branch)
Two situations, the first with promotion and the second without promotion were compared. It was discovered that if bananas were promoted when the supply of bananas was above a critical quantity (estimated at 760, 990 and 1,000 tonnes per week for Brisbane, Sydney and Melbourne respectively), price would increase. This would benefit producers if higher wholesale prices were reflected in increased returns to growers. However, if promotion occurred when supply fell below this critical quantity, producers would be worse off than if no promotion had occurred. The wholesale price would be lower and they would receive lower prices. Promotion when the supply equalled the critical quantity would have no effect on the price of bananas. This result was complicated by the fact that promotion was found to have a delayed negative effect on the price of bananas. Therefore, the net effect of promotion was dependent upon 2 factors; the quantity on the market and the presence (or absence) of the delayed effect of promotion. The results also showed that other factors such as banana quality, school holidays, carryover stocks of bananas and competition from other fruit had a negative effect on banana prices. The winter season had a positive effect on banana prices.
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