Tomatoes in Australia EVALUATION PRICE
Tomatoes are through the roof ? Tomatoes set to hit $8 – $10/kg in coming months ? Due to floods and frost destroying key crops ? Farmers receive half the price on supermarket shelf Chloe Hanlan, Emma Warren and Prada Hanlan enjoy a tomato sandwich / Pic: Nathan Edwards Source: The Daily Telegraph TOMATOES could be off the menu for at least two months with prices skyrocketing to $10/kg after flooding and frost crippled supply. Crops in four key areas up Australia’s east coast have been destroyed, with those surviving in limited supply due to delayed plantings. Industry experts predict the high prices of between $8/kg and $10/kg will ease in the coming months when supply levels return to normal following the combined problems of floods and frost put a huge dent in crops. Tomato grower Peter Comensoli, from NSW Farmers, said consumers were paying under a $1/kg for field tomatoes just two months ago. But a lack of supply had pushed up prices dramatically in recent weeks. He said consumers should usually pay between $3.99 and $4.99/kg in good times. Mr Comensoli said flooding in Queensland had heavily delayed seed planting for growers who would not start producing tomatoes until late June while some Sydney suppliers had been affected by frost. He said those growers in southwest NSW and northern Victoria were hit with a double whammy, when their crops that survived floods were affected by a frost. Mr Comensoli said the current supply was coming from glasshouses or those farmers who had avoided frosts. While these prices hurt the pocket of consumers, he said farmers were not complaining as they usually received about half of the price on the supermarket shelf. Another grower hoped the high prices would not turn people off tomatoes. “When the price goes down, and it will go down, it will take a while for consumers to realise and start buying again,” the grower said. Port Macquarie mother of two Linvana Hanlan said her children loved tomatoes but she would look at alternative sandwich options such as grated carrots and lettuce until prices fell. With winter approaching, Mrs Hanlan said instead of using fresh tomatoes for casseroles she would use canned tomatoes. Read more: http://www.news.com.au/money/cost-of-living/tomatoes-are-through-the-roof/story-fnagkbpv-1226365150402#ixzz1zQQuHNl2
Assignment Two: Applied Writing
1. This assignment is due on week 6 and is worth 25% of your overall assessment.
2. You need to submit this assignment via Learnonline Gradebook.
3. The word limit is 1000 words.
4. Provide adequate referencing. Check this site for how to cite properly (http://roadmap.unisa.edu.au/). Failure to cite properly is evidence of academic misconduct and will result in marks being deducted or even 0 mark for the whole assignment in serious cases..
Read the article titled “Tomatoes are through the roof” (by Nathan Edwards, the Daily Telegraph) and provide the analysis for the following statements in 3 different sections.
1. Use demand and supply model to explain and illustrate why the price of tomatoes in Australia is expected to rise. Make sure that you clearly state any underlying assumptions in your analysis (7 marks)
2. Discuss the determinants of the ‘Price elasticity of demand ‘of tomatoes, as they apply to the tomato sauce manufacturer, and illustrate the effect of price hike on the total revenue of the farmers producing tomatoes. (7 marks)
3. Considering the situation of tomato market in Australia, assume that the government has decided to intervene and introduce a price ceiling on the tomatoes. Illustrate the likely impact of this government intervention on the market. Conclude your analysis with a comment on the benefits and drawbacks of the government’s maximum pricing policy. (7 marks)
Your assignment will also be assessed on how effective you can communicate with the reader, i.e. how well you have presented your arguments and ensuring your analysis is logical and consistent. In addition, 4 marks will be awarded on writing including, grammar, referencing and formatting. Importantly, make sure you use appropriate diagrams in your analysis.
Some general hints:
• You DO NOT have to use actual price or quantity figures. Please use hypothetical data. Eg P0 to P1 or Q0 to Q1.
• Must make sure you fully label your graphs. E.g. name the graph, label the vertical and horizontal axis, show the arrows moving up or down, right or left. See page 50 of the text but also use P0 to P1 or Q0 to Q1 on the vertical and horizontal axis.
• To illustrate the graphs you can either use Microsoft PowerPoint by editing the slides online or you can hand draw them and then scan them back to your final copy.
• Make sure you clearly explain the equilibrating process. For further information, please go to the following website: http://en.wikipedia.org/wiki/Supply_and_demand
• Students should make sure they point to the specific outcomes that a graph is attempting to illustrate rather than simply saying something like “A higher price can be shown in the graph below.”
• You DO NOT have to write an essay. Weprefer that you simply number each question and answer in short paragraphs.
• You must always refer your answers to the particular market eg electricityand gas (utilities) market.
• Please ensure that you use proper grammar, clear presentation and reference your work, keep within the word limit otherwise you will be penalized 1 – mark.
• The assignment covers chapters 2 and 3.