Sunday, December 16, 2012

Supply, demand, Market (for sustainable goods):

As more and more people are becoming concerned about the environment the demand for organic and sustainably grown crops is increasing. Due to this increase in demand the firms are increasing their supply. According to the USDA, farmers have been increasing the amount of land they dedicate to organic farming by 15% each year (Grace). Market concentration also affects the supply. Currently the market is very concentrated. In “2007, four corporations slaughtered 83.5 percent of the nation’s beef, 66 percent of the pork and 58.5 percent of the poultry” (Grace). This concentration of the market has the effect of reducing the competition in the agricultural markets, as well as, reducing the price paid to farmers. Due to the control of the market by four large farms, an independent farmer may try to sell his beef to corporate buyer, however, only one or two firms want to buy his good. This reduces the price the farmer is likely to be paid. (For supply and demand information concerning genetically modified crops see genetic engineering: market)
     The chart above shows how the amount of Organic foods sold per year is increasing. The
     demand for organic and sustainably grown food is increasing.
 
 http://www.gracelinks.org/ > To explore more about sustainable options for food, water, energy
 
Sources:
"Grace Communications Foundation." Food Economics. N.p., n.d. Web. 16 Dec. 2012.
Picture Sources: 
"Sustainable Agriculture | Mideco." Mideco. N.p., n.d. Web. 17 Dec. 2012.

No comments:

Post a Comment