LONG-TERM DEVELOPMENT OF MARKETING MARGINS FOR FRUIT AND VEGETABLES IN GERMANY, F.R.

The long-term development of absolute marketing margins is influenced on the demand side by the pattern of wants and the consumers' disposable income as well as by income elasticity of demand. Determinants on the supply side are the marketing functions performed, changing channels of distribution, development of trading costs and competition, as well as technical and organizational progress.

With the help of a described single-product approach, information about long-term development of marketing margins is derived which will give insight into special aspects of the development of the fruit and vegetable marketing system in Germany, F.R. Though the selected products are not intended to be representative for the whole assortment of fruit and vegetables. A fundamental problem, when evaluating the statistical sources available for prices, is due to the fact they are collected for purposes other than single-product marketing margin analysis. This caveat must be considered when interpreting the results.

Results of long-term development of wholesale and retail unit margins from 1960 to 1981 are presented for lettuce, bananas and eating apples. The wholesale and retail unit margins for lettuce increase in a similar way. While the retail unit margin for bananas increased, wholesale unit margin showed a downward development, which is explainable an account of changes in wholesaling practice with bananas. Relatively low increases of the wholesale unit margin for eating apples can be observed. However, the overall unit margin rises very strongly.

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