Pricing Performance in Marketing Fresh Winter Tomatoes

Price analysis was used to determine if the behavior of weekly tomato prices at shipping points and wholesale terminal markets is generally consistent with a competitive marketing system. Results indicated that the winter tomato market in 1966-68 performed in an orderly and competitive manner. Prices were established at different locations that were consistent with marketing costs--transportation, storage, and handling. Prices at all locations in the marketing system were closely correlated. Margins were related to the distance transported and the price of the commodity. Shipping-point prices of tomatoes were inversely related to the supply of produce available. Wholesale terminal market prices directly responded to shifts in shipping-point prices. The marketing system for fresh tomatoes generally performed efficiently in establishing prices that cleared the supply of perishable produce each day and week of the marketing season