Articles
Towards a more sustainable fresh fruit and vegetable industry for Western Australia: an application of the PESTLE framework
Article number
1458_11
Pages
81 – 90
Language
English
Abstract
While most often used in the strategic management literature, this study employs the PESTLE framework to examine the sustainability of horticulture food chains in Western Australia.
While climate change and changing rainfall patterns are modifying production practices, profitability at the producer and retailer levels is the greatest concern for the long-term sustainability of the industry.
At the producer level, as input costs and compliance costs continue to rise, output prices are steadily declining as competition among major supermarket chains drives prices down.
Similarly, small independent retailers are struggling as competition from major supermarket chains erodes prices and the costs of running their businesses increase.
At both the state and local government levels, there is a need for improved long-term planning, a review of competition policy, and greater investment in public infrastructure.
As consumers are unwilling to pay a price premium to support sustainable food production, the government will need to explore alternative mechanisms to remunerate growers for the ecosystem services that they provide to society.
While climate change and changing rainfall patterns are modifying production practices, profitability at the producer and retailer levels is the greatest concern for the long-term sustainability of the industry.
At the producer level, as input costs and compliance costs continue to rise, output prices are steadily declining as competition among major supermarket chains drives prices down.
Similarly, small independent retailers are struggling as competition from major supermarket chains erodes prices and the costs of running their businesses increase.
At both the state and local government levels, there is a need for improved long-term planning, a review of competition policy, and greater investment in public infrastructure.
As consumers are unwilling to pay a price premium to support sustainable food production, the government will need to explore alternative mechanisms to remunerate growers for the ecosystem services that they provide to society.
Authors
P.J. Batt, G. McAlpine
Keywords
policy, strategy, profitability, governance, competition
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