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   Hi August!   
      
   12 Sep 2021 17:32, from August Abolins -> Richard Menedetter:   
      
    RM>> I assume it is just plain economics. If it is cheaper to   
    RM>> import an apple from Chile (including transport cost) than   
    RM>> to get it locally, they will do it.   
    AA> But why even bother?   
      
   People are looking for cheap apples.   
   So you check where you can source them the cheapest in a quality that you can   
   sell.   
   Then you take the option that gives you the most competitive advantage.   
   If people do not like quality or check the country of origin then you habe an   
   incentive to check those.   
   If you sell enough then the cheaper price trumps it.   
      
    AA> All they're doing is spreading out the potential saleability of the   
    AA> domestic product to a competitive apple. Unless, the PROFIT from the   
    AA> Chilean apples is much more, perhaps.   
      
   Naturally if you source cheaper then you can either sell cheaper and beat the   
   competition, or make a bigger profit.   
      
    RM>> Maybe CO2 prices to be paid will help here ...   
    AA> You mean CO2 "carbon taxes"?   
      
   Yes.   
   If they are carried over 1000s of kms then you generate much more CO2 then if   
   you take an apple from your neighbor.   
      
    RM>> The issue is transport is ridiculously cheap.   
    AA> Domestic apples make more sense; shorter transport times,   
    AA> faster to the market.   
      
   Why?   
   Shorter transport would only be relevant if it is cheaper. (which in bulk it   
   is often NOT).   
   There is not really faster time to market.   
   If you have a steady stream of deliveries then it is NOT faster.   
   Important is that you are able to deliver in time. If you can do that with   
   your supplier then it is not really important where it is.   
      
   The only issue would be if people note the deteriorated quality due to longer   
   transport.   
   It seems most people do not notice or care.   
      
    AA> At one point I was just looking at the cheapest apples and   
    AA> buying those. Then I realized WTF am I doing and not supporting   
    AA> my own country's apple farmers.   
      
   It seems most Canadians do not think (yet) like you.   
   It is supply and demand.   
   If people ask for the cheapest apple possible, then you look where you can   
   source that.   
   If people are looking for domestic apples, you will look for a cheap Canadian   
   source.   
      
    AA> Canadian grocer even import foreign apples when there are   
    AA> plenty of domestic farmers.   
      
   Because they are cheaper, and most people do not seem to care.   
   If people would stop buying foreign apples, then he would immediately stop   
   importing them.   
   As long as people buy them, he has a price advantage of buying them.   
      
   CU, Ricsi   
      
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