Factors affecting market prices of New Zealand Granny Smith apples in four Canadian markets : A dissertation submitted in partial fulfilment of the requirements for the degree of Bachelor of Agricultural Science with Honours in the University of Canterbury

Abstract

The New Zealand Apple and Pear Marketing Board is the sole exporter of New Zealand apples. It exports New Zealand Granny Smith apples to several world markets, one of these being Canada. The apples are sold at wholesale markets throughout Canada rather than directly to the Canadian public. The market price is an equilibrium value determined by the intersection of the total demand and total supply curves at a point in time. The total demand for New Zealand Granny Smith apples in a market at any given time is a function of the wholesale demand for the apples and the inventory demand of the New Zealand Apple and Pear Marketing Board facilities in the market for the apples. This study attempts to estimate the factors affecting the market price of New Zealand Granny Smith apples in four Canadian markets (Montreal, Toronto, Vancouver, and Winnipeg) using a reduced form model). The main factors affecting the reduced form variable for the market price of New Zealand Granny Smith apples were the reduced form factors for the market price of competing countries Granny Smith apples in week j, the market prices for New Zealand Granny Smith and competing countries Granny Smith apples in the week before(j-1), and the supply of New Zealand Granny Smith apples in week j.