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.
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