Fuel in Uganda
The article from the allafrica.com deals with the fuel shortage in Uganda. Consumers are accusing suppliers of holding back the fuel in order to increase the prices for fuel. But since fuel is inelastic consumers are forced to continue to consume the fuel at high prices.
Wednesday, 26 November 2008
Tuesday, 23 September 2008
Supply and Demand of Organic Food
Demand for organic food growing faster than domestic supply
Economics Commentary 1 on Demand for Organic Food in the United States
The article “Demand for organic food growing faster than domestic supply” from the Bayjournal concerns itself with the shortage of organic food in the United States. The article explains how the demand for organic food is growing rapidly and why so few farmers are willing to change their farming techniques in order to produce organic foods.
The demand for organic food in the United States has increased dramatically over the past few years. Demand is the amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price. It has come to the point where supermarkets have to deal with a shortage of organic food because farmers cannot supply such amounts of food. Supply of a product is the total amount of a good or service available for purchase; along with demand which is one of the two key determinants of price. The organic food market has opened many new opportunities for farmers and has also caused many difficulties for them. On the one hand they want to supply more organic food for the nation but on the other hand they are not willing to change their cropping methods in order to grow organic food, which is grown without pesticides. Farmers would need to stop using chemicals to grow their food and wait longer for things to grow. Not every farmer is willing to do so and that is how the shortage for organic food is developing. But not every farmer acts in this manner. Many farmers have seen the opportunity in growing organic food and being able to charge higher prices and taken initiative to change their businesses to purely organic.
Customers also play a big role in the development of organic foods in the United States. They are the main reason why there is such a struggle to supply enough food that is grown without chemicals. Many Americans have started to realize that naturally grown food is way healthier than chemically grown food. Their tastes and preferences have changed their whole lifestyle and the producers are having difficulties supplying enough organic food to the entire nation.
If one looks at the development of organic food on the demand curve, then one can see that there has been a dramatic shift in demand. The current problem is that although demand is increasing drastically supply is not showing the same growth. The demand curve below illustrates what should be happening in the market for demand. As explained earlier many farmers are not willing to change their farming techniques and are therefore unable to keep up with the demand for organic food.
At this point in time many farmers are still hesitant towards the thought of having to change their entire crops in order to produce organic pesticide free food. But I believe that these farmers will soon realize that there exists a huge niche which they could fill and make a lot of money with. Since there is such a huge shortage in this area, market farmers are able to charge higher prices and make a lot of money. I think that this will inspire many more farmers to take the risk of not being successful without pesticides and start producing more organic food.
Market for Organic Food
Economics Commentary 1 on Demand for Organic Food in the United States
The article “Demand for organic food growing faster than domestic supply” from the Bayjournal concerns itself with the shortage of organic food in the United States. The article explains how the demand for organic food is growing rapidly and why so few farmers are willing to change their farming techniques in order to produce organic foods.
The demand for organic food in the United States has increased dramatically over the past few years. Demand is the amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price. It has come to the point where supermarkets have to deal with a shortage of organic food because farmers cannot supply such amounts of food. Supply of a product is the total amount of a good or service available for purchase; along with demand which is one of the two key determinants of price. The organic food market has opened many new opportunities for farmers and has also caused many difficulties for them. On the one hand they want to supply more organic food for the nation but on the other hand they are not willing to change their cropping methods in order to grow organic food, which is grown without pesticides. Farmers would need to stop using chemicals to grow their food and wait longer for things to grow. Not every farmer is willing to do so and that is how the shortage for organic food is developing. But not every farmer acts in this manner. Many farmers have seen the opportunity in growing organic food and being able to charge higher prices and taken initiative to change their businesses to purely organic.
Customers also play a big role in the development of organic foods in the United States. They are the main reason why there is such a struggle to supply enough food that is grown without chemicals. Many Americans have started to realize that naturally grown food is way healthier than chemically grown food. Their tastes and preferences have changed their whole lifestyle and the producers are having difficulties supplying enough organic food to the entire nation.
If one looks at the development of organic food on the demand curve, then one can see that there has been a dramatic shift in demand. The current problem is that although demand is increasing drastically supply is not showing the same growth. The demand curve below illustrates what should be happening in the market for demand. As explained earlier many farmers are not willing to change their farming techniques and are therefore unable to keep up with the demand for organic food.
At this point in time many farmers are still hesitant towards the thought of having to change their entire crops in order to produce organic pesticide free food. But I believe that these farmers will soon realize that there exists a huge niche which they could fill and make a lot of money with. Since there is such a huge shortage in this area, market farmers are able to charge higher prices and make a lot of money. I think that this will inspire many more farmers to take the risk of not being successful without pesticides and start producing more organic food.
Market for Organic Food
Subscribe to:
Comments (Atom)