Annona Species Monograph.pdf - Crops for the Future

Chapter 12. Economic Information
Packing represents 8-10% of the gross value reflected in the market price and
poor packing can decrease the fruit price by up to 30% (Kavati, 1997). Sugar
apple packing carton type 9 is the most commonly commercialised in southeastern
Brazil. However, in Brasilia, a smaller and cheaper wooden box with
six fruits is the most common type of packaging, with a retail price of R$
4.00 per box (US$ 1.65/box) in May 2001, while the supermarket price was
generally twice as high.
To provide the consumer with a good quality product on a timely basis with
affordable prices, a well-constructed farmers' organization is necessary.
Close linkages between growers and retailers can be established through
producer cooperatives. The development of this type of organization is
extremely important for the success of most modern agricultural initiatives,
but is beyond the scope of this book.
Looking at the participants of the market chain of annona fruits, growers are
the ones who have the highest risk and the lowest profit, whereas consumers,
at the end of the chain, pay for all the growers', wholesaler's and retailers'
profits. The best example of this common economic equation is given by
Alvarez et al. (1999) in Ecuador. Cherimoya prices in Ecuador in 1999
ranged from US$ 0.01 to 0.05 per fruit of 600-800 g at the farm gate.
Wholesale buyers sold cherimoya to the supermarkets at the price of US$
0.075 per fruit and supermarkets sold the fruit to the final consumer for US$
0.25, which is an increase of 80 to 96% over the price received by the
growers compared with the price received by the supermarket owners.
However, it is necessary to remember that most of this price composition is
aggregated by services needed to get the final product into market due to its
perishability.
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