Title: Which factors contribute to price decreases in the agricultural market?
Headings: Which factors contribute to price decreases in the agricultural market?
Which factors contribute to price decreases in the agricultural market?
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Content: Economic evaluation of the enterprises would be made to assess the feasibility of the improved production system for employment generation. Cite
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12th Dec, 2012
Derek Brewin
University of Manitoba
I agree that increased productivity through innovation is the main driver of lower prices (not that we have seen very low prices lately). Free trade can lower prices if the country is a net importer at world prices or increase prices if the region is a net exporter. Free trade just reflects a larger demand. Falling demand due to improved substitutes or cheaper options is another factor. But over time the dominant factor would be innovation leading to the same profit for farmers even at a lower price. Cite
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1st Jul, 2012
Reshmi Kumari
Ministry of Sugar Industry
yes both can be the case....in terms of over supply which arises when commodities are in season, or due to favorable weather conditions, cheap inputs price, etc
Free trade could arise when there is no barrier to export ie no or less export duties, no quota, tariff qouta, relaxed bio-security trade conditions when agricultural commodities are free to enter a market. This could be shown on the demand and supply conditions graphically to determine the impact on price...
kind regards
RK
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1st Jul, 2012
Waraporn Saelee
Office of Agricultural Economics
Thank you. Cite
2nd Jul, 2012
Juliet Zavon
Yes, both factors in general can contribute to price declines. However, many other factors also affect market prices.