The capability of apple growers in Western Australia to meet the needs of downstream market intermediaries: a case study

In this study of the Western Australia apple industry, a pluralistic methodology was employed to provide an economic and social evaluation of the various trading relationships between growers and their preferred downstream market intermediaries. Rational economic theory suggests that growers will choose to interact with those downstream customers who offer the highest prices. However, it is apparent that growers prefer to consign fruit to a number of different markets and different customers, in order to minimise risk. In selecting those downstream market intermediaries with whom they will transact, growers recognise that in order to conduct business, they must first satisfy the needs of their downstream customers. While the need to maintain a consistent supply of good quality fruit is paramount, this can result in a significant increase in costs and additional investments in infrastructure.