Can the marketplace for apples teach us about cashfinance?
Click to expand Image: Arly Flo. Source: Wikimedia Like lots of peoplelots of people, I matured with the stating,” An apple a day keeps the medical professional away.”Apples are supposed to have all kinds of health benefits– from assisting your digestion to minimizing cholesterol to improving your memory. And– unlike a lot of healthy foods– they taste quite excellentrespectable. But I was never really keen on apples. You see, when I was young, quitebasically every apple looked and tasted the very same. It was a bright, somewhat mealy variety called “Red Delicious.” And they weren’t very tasty.
When I had an apple in my school lunch, I would eat it. But I didn’t enjoy it. The taste was– um– okay, but nothing to write house about. Apples may have been goodbenefited you, but that has to do with all they were. And if you went to the store, there wasn’t much choice. There was either Red Delicious, Golden Delicious or green Granny Smith.
This wasn’t greatgreat for consumers, and it wasn’t great for manufacturers either. Apples were a commodity. One apple was quitepractically identical to another. And like all commodities, just the lowest-cost producer makes any money. Any commodity organisation is harsh. Smaller sized apple orchards around the country were closing down. Production was shifting to mega-farms in Washington State, which utilized mass-farming strategies to become more effective. In the mid-’80s, there was a health scare involving Alar, a chemical sprayed on apples to control their growth. It appearedappeared like everyone was losing: producers were going out of companyfailing, and customers got generic, mealy apples grown with toxic chemicals.
< meta itemprop = url content = https://staticseekingalphaassl.fastly.net/uploads/2016/10/16/saupload_image002-7.png > Click to increase the size of