Question

For Pineapples How are products priced in the markets? Are they determined in central markets? Are contracts used? Please explain how the price can be affected by these factors.

Answer 1

Fruits are having huge demand in the local and international markets. There are variety of fruits that being imported and exported in national and international market due to the demand. Fruits become one of the most essential food products that has so many benefits in our daily life.

Pineapple is one of the best fruits that available throughout the year without any shortage. The fruit has strong benefits in our daily life with enough nutrients, strong antioxidants, boost the immunity and good for digestive system. There are so many health benefits from the fruit. Though it has enough benefits because of the more production and availability the fruit has lesser price market. Even the import and export cost of the fruit is less compared with other fruits due to the higher production and less demand in the overseas market.

The product is prices are depending on the demand and supply. At present the global market don’t have much demand for the product. Most of the countries has their own production system through which the import and export of the fruit got minimized. For example, countries like Netherlands could not able to generate the profits out of it, Australia has oversupply, china and Philippines consumes more even there it cost less.

Yes, they are determined in central markets as they mostly prefer organic and natural foods in the markets. The value for the product is again depends on need and requirement to the customer, even product attachment. Based on that even the price of the product is decided. The long chain structure in central market could not win much profit for this product. As every product has contracts, in the same way pineapple are also having contracts.

The price can be affected by these factors:

· The more production, almost every country produces pineapple

· Less play in national and international markets

· More supply and less demand in the global markets

· Less demand in local and central markets

· The price of the fruit is also one factor

· Even the contract system for the product does not entertain more

These are the major factors that affects the price of the product.