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What Affects the Prices of Fruits?

February 12, 2020

Extreme weather drives higher prices. Often, it’s the lack or excess of water that affects the quantity and quality of produce. Whether it’s a drought or a flood, expect prices of fruits to go up.

However, it’s just one factor because Australian’s food supply chain is far from being “a chain” and linear. The truth is that it’s a network of factors that also includes consumer demand, national and global economy, climate change, the need for more water and productive land and growing costs of energy (including during production, harvest and transport).

What affects the prices of fruits?

Although petrol prices go up and down, it’s likely that fuel will get more expensive in the coming years. It could be because of the level of supply and demand as well as investor sentiment about the oil market. Geopolitics also plays a huge role here. If petrol prices go up because of one or a combination of those factors, the final purchase price of the good will also go up.

Farmers, logistics firms, supermarkets and food businesses (including restaurants and fruit hamper businesses) already anticipate those changes in the fuel price. However, it gets totally different when there’s a calamity. Natural disasters including lack of rain and extreme summer temperatures result in lower quantity and quality of produce. For example, drought can make stone fruits, apples and plums a lot smaller than what consumers are used to see in the supermarkets. This makes it doubly harder for the growers (as well as the supermarkets) because consumers may not buy as much or not buy at all if the fruits are a lot smaller. In fruit baskets, both the aesthetic and value of the final product will also be affected because of the necessary change in arrangement and packaging of the fruits.

It’s just a quick view of what affects the prices of fruits whether on a suburb or national level. Other factors such as damages to the goods are also important. For example, damages can happen due to improper handling (during harvest, sorting, packaging, transport and storage). Huge financial losses will result from this especially if the fruits and other food products are transported outside the ideal temperature range.

Here at COOLTRANS, we help minimise financial losses by ensuring tight temperature control during refrigerated deliveries. Whether it’s a single carton delivery or an 8-pallet load, you can be sure that refrigerated transport is according to your specifications and the highest standards. Contact us today for your refrigerated delivery requirements.