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Banana supply chain Australia - Term Paper Example

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Institution Date Banana supply chain in Australia Introduction International business entails the global market for products from all countries around the world. Many countries have ventured into carrying international business transactions and this is depicted through ways like outsourcing and also opening up of business branches in other countries…
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Download file to see previous pages This is supported by the fact that almost the whole population has a banana at least a day. This is represented by over 95% of the general population. To meet this demand, there is need for mass production and an efficient supply chain in order to reach the consumers on time. Statistics indicate that the small scale farmers are the main suppliers of the bananas within the Australian market. North Queensland is the religion that is said to be very productive (Peckham 2011). It is the core region from where most of the bananas come from. Ingham is said to be one of the most productive region supplying the highest percent to the market. It is therefore imperative to note that most of the bananas are grown from the northern part of the country and have to be transported to the southern part. This is owing to the fact that most of the towns and population is found in the southern parts. For that reason, it is imperative to have an elaborate transport network that will ensure timely supply of products to the market. Supply chain It is indicated that the banana supply chain in Australia varies from place to place depending on the preference of the farmers (Nossal, 2009). One of the major supply chains however, is where there is the presence of an agent, who supplies to the wholesalers. The latter sell to the retailers who later sell the bananas in low quantities to the customers. The other common ones are from the farmers who sell directly to large wholesales, who also sell to the retailers. Finally, certain large retailers are also able to purchase directly from the farmers and then later to the customers. The latter is preferred by most marketers since there is little damage that is incurred during the transportation of the bananas to the market. This is owing to the fact that banana is a very delicate product and also very perishable. Big losses are incurred in the process of transportation especially where they have to be transported to large distances. For that reason, there is a plan within the local market to bring the number of middlemen as low as possible. The main type of transportation network is the highway roads which connect directly from the farmers to the large markets in the southern parts of the market. Large trucks are loaded with the bananas and have to transport them over long distances. For instance, one of the longest distances is said to be 2,600km in order to reach the consumers (Nellemann 2009). This therefore indicates that there is need to have a reliable transport network that will not affect the supply of bananas. The price of bananas has been on the rise hitting as high as 5 dollars per kilogram. There are various factors that are said to contribute to this high prices ranging from weakening of the dollar as well as low supply. The latter is caused by among other factors poor weather conditions and effects on the roads (Nossal, 2009). Farmers also face losses owing to the adverse weather conditions that affect the countries from time to time. Most of the farmers who rely entirely on the rains may not produce enough or quality bananas that can compete favorably in the market. It is also indicated that some of the agents take advantage of the farmers by purchasing the bananas at low prices. This kind of exploitation denies most of the farmers enough capital to increase productivity. Factors affecting the supply chain The ...Download file to see next pagesRead More
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