Relationship Between Macro Environment And The Demand For Dairy Product

of every community. The dairy and cattle industries have been around since the beginning of time and are vital to society and has grown immensely. Farmers and ranchers now use inventions and special breeds of cows to produce the best and highest quality beef and milk. In this paper there are many facts that show how the dairy industry grow. Many things have caused the dairy industry to boom but there are three main points are needed to understand the boom. In order to understand how the boom of the cattle and dairy industry one needs to understand the inventions, the demand for dairy products and the diversity in the industry.

Pricing for Milk in the U.S. Dairy Industry has been a difficult task for more than a century. Unlike regular consumer goods, which follow the typical supply and demand laws, milk has unique aspects that make prices very volatile, which makes pricing difficult for dairy farmers. One reason for this volatile pricing is due to the fact that milk is a flow commodity, which means it is produced daily and moved daily (Manchester, 2). Unlike other commodities, milk can’t be stored for long periods (2). This makes it difficult to store excess supply. Another reason milk is difficult to price is due to the fact that production of milk does not meet the supply of milk (2). Milk has almost zero demand during the weekends, but is produced daily.

As the modern day economy continues to grow, more and more discussion are emerging revolving around what are the factors that led to the successful economic growth in some countries and one country that has been gaining researcher’s interest is China and the development of Beijing from a third world country in the to a developed and Newly industrialized country today.

In 1990, there were over 9300 dairy farms in Ontario housing almost 450,000 cows. The farm-gate value of milk produced exceeded 1.3 billion dollars. At the retail level, dairy product sales in Ontario exceeded 4 billion dollars. The number of dairy herds in Ontario on a milk-testing program had declined from about 7100 in 1985 to 6000 in 1990. Moreover, a continued decrease was projected.

The Chinese president is looking to boost consumption and import as part of efforts to restructure its economy (Hu Looks to Boost China's Consumption, Imports, (April 15, 2011). The Chinese energy consumption has been predicted to soar to 68% higher than that of the USA by the year 2035(China, India to lead energy consumption, (September 20, 2011). Investment spending is also set to increase from $12,633 billion (2011, 48% of GDP) to $29,628 billion by 2030 (38% of GDP) (CHINA - Gross fixed investment (% of GDP) from 2011 to 2030, EIU Country Data). In 2006 China had a rating of 5.00 and was seen ranked at 101st in terms of the degree of economic freedom as measured

These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.

• The rise and fall of GDP over a specific period of time is, in many cases, the number one indicator for how the economy is doing. Being the output of final goods and services, GDP works well with consumer confidence and provides a good idea as to the general health of the economy. By looking at Figure 1, we can see that GDP rose steeply after the 20008-2009 recession and has continued to remain strong with relatively little movement since 2010. In the most recent quarters, 2014 and 2015, GDP has declined a little, but the decline is in no way too drastic nor did it have any significant impact on the economy. This slight decline is more like GDP

China has reached a milestone in terms of achieving its centenarian goal of making China a prosperous nation once again. One of the ways that it has done this is by having steady economic growth even in the midst of an economic crisis. Not only has China’s economy grown, but its standard of living has also improved, it has achieved this by spending 70 percent of its fiscal revenue towards improving people’s standard of living. China has also pushed more anti-corruption reforms and has made efforts towards widening its economy by setting up freer trade.

a. an increase in the demand for red meat products and a decrease in the demand for fish & poultry b. an increase in the demand for dairy products and a decrease in the demand for red meat c. an increase in the demand for fruits, vegetables and fish and a decrease in demand from fried foods, dairy

However, has a negative impact on the consumer as they are forced to pay a price higher than the natural driven equilibrium price. The government ensures that the supply of dairy products is limited yet the demand remains constant causing an increase in price. This is not fair to the consumers and is inefficient for Canadian society as producers are able to meet the demand for Canadians but the government is limiting the supply causing an injustice for Canadian. This ultimately leads to a market failure. Furthermore, “it is illegal to sell unpasteurized milk, thereby removing any alternative markets to sell in.

While there are many significant challenges presented to dairy farmers including making production environmentally friendly, competitive products, and consolidation, I belvie that the shift towards mega-farms is the largest potential threat. As we advance in technology we also advance in productivy, moreover, this can be harmful to dairy farmers. Mega-farms allow better technology to become more competitive and increase more product output. With this advantage, these mega-farms dominate the market and gain significantly finicailly. While an increase in production from a fiscal stand point may appear positive it diminishes local dairy farmers and they can simply not compete with mega-farms economically. While mega-farms face there own problems

Though, many consumers are against the use of rbST to increase milk production there is still a group that is for the hormone. This group of consumers believe that due to the increased supply of milk, the prices will decrease. The impact of the increase milk supply with not only lower milk prices, but also permit the opportunity for the consumer to have a plethora of milk products (Dhar,

Canada 's dairy sector operates under a supply management system based on planned domestic production, supervised pricing and strict controls on dairy product imports. The system was adopted for industrial milk in the early 1970s to address the unstable prices, uncertain supplies and fluctuating producers and processor revenues which were common in the 1950s and 1960s. By enforcing this system, farmers attempt to strike the most accurate balance between supply and demand of dairy products (Canadian Dairy Commission, 2010).

So at the private equilibrium PM dairy is under priced, as it only reflects private costs and benefits. As a result dairy is being overproduced at QM. Society would prefer if supply was at QS and if the price was at PS, to reflect the true costs, both social and private from fast food

Based on the initial declaration of findings from the Conference Board of Canada analysis of supply management, consumers are highly affected by the system as dairy prices in Canada are