Thursday, November 29, 2007

Inelegant mystery

How is it possible that these tomatoes, from Italy, can still be sold at $1.28 a tin, which on this particular day was a fraction more than the Australian product. Usually they are even cheaper than this, and the Australian product is more expensive. Italy is not a third world country! The only competitive advantage here are European subsidies. Regardless of competitive advantages, which have been in place for many years, the price of transport has gone up by degrees in the last year. How can tomatoes which have been shipped 15,971 kilometers still be sold at almost the same price as the local product?

Surely these costs will come to bear before long.

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