wooley
Member
- Joined
- Apr 14, 2015
- Posts
- 215
Those capsicums are flow wrapped which immediately value adds a product and for good reason.
They're pre packaged on farm for transport, which requires machinery at a starting cost of ~$250,000, then add in labour... 4-6 individuals (specifically for that line) at $22/hour.
Not to mention that these capsicums have already been graded... Taking up time and through put of other packing lines (machinery, equipment, manpower) for bulk boxes.
One of these bags takes 4-5times longer to move through a packing shed.
The extra time and money involved in value adding is generally only worth the costs involved when there is a collapse in bulk prices of fruit.
Turning a $10 box of capsicums into a $22 box is an enormous benefit. Not so much when a box of capsicums will pull $20.
The economics of the fresh fruit market rarely make sense... At all.. Ever. Standard principles go straight out the window.
They're pre packaged on farm for transport, which requires machinery at a starting cost of ~$250,000, then add in labour... 4-6 individuals (specifically for that line) at $22/hour.
Not to mention that these capsicums have already been graded... Taking up time and through put of other packing lines (machinery, equipment, manpower) for bulk boxes.
One of these bags takes 4-5times longer to move through a packing shed.
The extra time and money involved in value adding is generally only worth the costs involved when there is a collapse in bulk prices of fruit.
Turning a $10 box of capsicums into a $22 box is an enormous benefit. Not so much when a box of capsicums will pull $20.
The economics of the fresh fruit market rarely make sense... At all.. Ever. Standard principles go straight out the window.
