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Price Determination in the Australian Food Industry A Report

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PRICING ANALYSIS<br />

$<br />

6.00<br />

5.00<br />

4.00<br />

retail<br />

Figure 63.<br />

<strong>Price</strong>s of field<br />

gourmet<br />

tomatoes,<br />

1kg, $/kg,<br />

Brisbane<br />

3.00<br />

2.00<br />

1.00<br />

0<br />

$<br />

4.00<br />

3.50<br />

3.00<br />

2.50<br />

2.00<br />

1.50<br />

1.00<br />

0.50<br />

0<br />

wholesale<br />

2000 2003<br />

wholesale<br />

retail<br />

2000 2003<br />

Figure 64.<br />

<strong>Price</strong>s of<br />

cavendish<br />

bananas,<br />

1kg, $/kg,<br />

Melbourne<br />

These charts provide<br />

examples of <strong>the</strong> analysis<br />

of data that is typical of<br />

<strong>the</strong> differences between<br />

<strong>the</strong> reported wholesale<br />

data and <strong>in</strong>dustry data<br />

that is collected from<br />

supermarket retail sales.<br />

It is dangerous to make<br />

assertions about <strong>the</strong><br />

share of marg<strong>in</strong>s that is<br />

obta<strong>in</strong>ed from this<br />

comparison because of<br />

<strong>the</strong> weaknesses <strong>in</strong><br />

approach <strong>in</strong> collation of<br />

<strong>the</strong> wholesale data and<br />

<strong>the</strong> grow<strong>in</strong>g portion of<br />

retail buy<strong>in</strong>g which is<br />

direct <strong>in</strong>to warehouse at<br />

prices which are different<br />

from those wholesale<br />

values shown above. The<br />

only valid means by<br />

which a comparison can<br />

be made is via traced<br />

sales through <strong>the</strong><br />

markets <strong>in</strong>to <strong>the</strong> retail<br />

market to ensure <strong>the</strong>re is<br />

like-for-like comparison<br />

of <strong>the</strong> price po<strong>in</strong>ts.<br />

$<br />

5.00<br />

4.00<br />

3.00<br />

retail<br />

Figure 65.<br />

<strong>Price</strong>s of<br />

granny<br />

smith apples,<br />

1kg, $/kg,<br />

Melbourne<br />

2.00<br />

1.00<br />

0<br />

$<br />

3.50<br />

3.00<br />

2.50<br />

2.00<br />

1.50<br />

1.00<br />

0.50<br />

0<br />

wholesale<br />

2000 2003<br />

wholesale<br />

2000 2003<br />

retail<br />

Figure 66.<br />

<strong>Price</strong>s of<br />

valencia<br />

oranges,<br />

1kg, $/kg,<br />

Brisbane<br />

Source: Ausmarkets and HAL.<br />

<strong>Price</strong> <strong>Determ<strong>in</strong>ation</strong> <strong>in</strong> <strong>the</strong> <strong>Australian</strong> <strong>Food</strong> <strong>Industry</strong><br />

65

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