If the growing conditions are perfect for apples, production is high and the market is strong, then the grower will get a good money return for their product. Growers will have money to maintain their tractors, sprayers and other equipment. If they have enough surplus cash they could even buy new equipment.
Now the tractor company has money to possibly employ extra staff. The staff that are now employed have money, which they can spend in other areas of the community. This flow of money does not only positivley affect the local community but also the rest of Australia.
On the other hand, if a natural disaster has occurred and the crop is destroyed, the grower will be struggling to meet their debts. When the grower is in debt, they are not able to pay their suppliers, then the suppliers will struggle to pay their repayments. This chain reaction causes the local economy to slow down.
Also if the Australian dollar increases, overseas buyers won’t be purchasing our apples because they are too expensive. With no one buying apples there is a glut in the market which means the growers will have to sell their apples cheaply or at a loss. In some cases, growers have had to dump perfectly good fruit.
Now the tractor company has money to possibly employ extra staff. The staff that are now employed have money, which they can spend in other areas of the community. This flow of money does not only positivley affect the local community but also the rest of Australia.
On the other hand, if a natural disaster has occurred and the crop is destroyed, the grower will be struggling to meet their debts. When the grower is in debt, they are not able to pay their suppliers, then the suppliers will struggle to pay their repayments. This chain reaction causes the local economy to slow down.
Also if the Australian dollar increases, overseas buyers won’t be purchasing our apples because they are too expensive. With no one buying apples there is a glut in the market which means the growers will have to sell their apples cheaply or at a loss. In some cases, growers have had to dump perfectly good fruit.