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Swot Analysis Of Agricultural Industry : Food Regulation, Distribution, And Consumption Of Foods

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PESTEL Analysis of Agricultural Industry
Political factors impact the agricultural sector in factors relating to regulation, distribution, and consumption of foods in a given country. Government policies and imposed regulations have a direct effect on nutritional choices that a consumer makes, and this, in turn, affects the agriculture market (KPMG, 2012). For example, policies governing food prices or the amount of information that a consumer will receive affects the choice of the consumer. Food regulation and safety measures implemented influence the supply of food products, and ultimately determines the market choice for consumers (KPMG, 2012). Economic factors have a direct effect on the agricultural industry. On one hand, the input cost such as the price of seeds, fertilizers, and cost of labor affect the productivity of the industry. The economic status of a country also affects the industry’s productivity. For example, in developing countries, the agricultural sector is less developed owing to limited resource input and poor infrastructure (KPMG, 2012).
Social factors that affect the industry include rural-urban migration, negative perception of the sector, consumption and buying patterns (preference for organically grown foods), and limited earning potential especially in the rural areas (KPMG, 2012). These factors impact negatively on the industry and in many industrialized nations, other industries such as technology have taken huge strides to the benefit of

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