Tuesday, November 25, 2008

Commercial greed

The agricultural organisation, La Unió conducted a study into the price markup on citrus fruits. They compared the price that growers were paid with the average price in four supermarket chains.

What they found was an extreme commercial margin between the price the growers received and the price in the supermarkets.

Take lemons, which the survey found were bought for 0.18€ per kilogramme from the growers and subsequently sold at 1.6€ per kilogramme in shops. That represent a whopping 911% markup in the price.

Oranges were bought for 0.12€ in the field and sold at 1.22€ - a markup of 917% . La Unió  found similar story applied to  mandarins which were bought at 0.15€ and sold at 1.41€ - a markup of 840%.

As La Unió says, "everyone wins in the distribution chain with the exception of the grower". They will take their case to the Conselleria de Agricultura on Monday 1st December in the hope that can win a better deal for the growers.

Actually we know exactly what would happen if the growers achieved a better deal.  Everyone else in the chain would put their prices up and blame the growers who would be made to look greedy.

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