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: That why I needs opinion from experts. Best regards. Waraporn Saelee
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2nd Jul, 2012
Anna Mutinda
Ministry of Agriculture, Livestock and Fisheries, Kenya
For sure oversupply of any particular commodity in the market with a limited demand tends to bring down the prices for that particular commodity. Increased supply of a substitute commodity could also lead to a lower price for the primary product. Time is the other factor that afffects prices of agricultural commodities especially in the open market. At the opening time the sellers are usually fewer than the buyers but the situation tends to reverse with time. As time progresses the sellers tend to dispare, especially in the markets with no storage facilities, as so reduce the prices to just get rid of the commodity. Cite
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2nd Jul, 2012
Aman Mohammed
Haramaya University
Even if both will have an impact on agricultural products price, they are not the only ones. For instance, If you consider mot developing countries case it is advisable to improve scarce resource use efficiency of smallholder farmers than aiming to over supply. This is mainly because sustained reduction of agricultural products price can not be achieved by temporal over supply.