Tomato Price Movements, 2006 - 2011

|14. |The prices of potatos and tomatos vary, but the prices of loafs of bread remain fairly constant. | |

There is a market trend of supply and demand in an economy and this is measured through the equilibrium process and the actors that affect supply and demand. The farmers are the market suppliers and hence they determine their produce by measuring the equilibrium market prices and quantities. The suppliers are aware that when the prices of commodity increases the demand of the same commodity decrease and when demand increases supply decreases until the market reaches an equilibrium point. There are various factors that affect

Aramyan, L. H., Meuwissen, M. M., Oude Lansink, A. M., van der Vorst, J. J., van Kooten, O., & van der Lans, I. A. (2009). The perceived impacts of quality assurance systems on tomato supply chain performance. Total Quality Management & Business Excellence, 20(6), 633-653.

Supply and demand are the rulers of price in the capitalist economy of the United States, and farm goods rely on these factors as much as any other commodity. The demand for food remains relatively stable although slightly increasing year to year, but the supply fluctuates greatly depending on

Also, the consumer price index measurements can be used to forecast the future economic prices. Hence, the company will use the suitable environment to achieve its goal of maximizing profits and also minimizing the costs.

analyse the effect of mark-up on wages and commodity prices on the final consumer prices.

Grocery stores tend to make their own market brand products because of high priced retail products. These "market-brand " products are sold at a cheaper price, which helps the wallet wary shoppers. The wholesale price index (WPI) has been negatively impacted by inflation. Wholesale price index measures and tracks the changes in prices that retailers pay for finished goods. Inflation only becomes negative when it goes beyond 5.5%. Inflation should be reduced to aid more shoppers in the U.S.

The change in prices also had an impact on the Italian region’s expected and actual profit because the €7 total sales variance represented an increase of €7 profit for the actual profit. The €7 variance was calculated by the favorable €20 variance for ice cream sales and an unfavorable variance of €13 for specialty sales (€20-€13=€7). This proves that the Italian region can charge slightly more for their ice cream sales given the increase in demand, while the increase in demand of the specialty product could be more attributed to the decrease in price. Overall, the change in pricing came out to make a positive impact on the Italian region’s profit.

Since those numbers were not available in the case, we chose to compare the prices and consumption of bananas in Germany versus France prior to CMOB taking effect. (move to an end note: Germans, residents of the only free market for bananas in Europe, consumed 16.6 kg of bananas per capita at an average price per ton of 438 of ECU in 1991 while the French, residents of Europe’s most protective market, consumed 8 kg of bananas per capita with average price per ton of 604 ECU. (case p 7). The percentage change in price from France to Germany is (604 ECU-438 ECU)/438 ECU, which equals .379. The percentage change in quantity from France to Germany is (8 kg-16.6 kg)/16.6 Kg, which equals -.518. The absolute value of the percentage change in quantity over the percentage change in price is 1.3.) That calculation showed European demand to be elastic at 1.3, so for every 1% change in price, the quantity demanded will change 1.3%.

One of the most notable patterns of sales in regards to total sales volume is that it increases drastically when the average price of soup is low (Average price is calculated by dividing Category Volume by Category Dollars). Total sales volume had significantly increased when either Rocket Soup or competitors (or both) offer low price for promotion. In other words, soup consumption is relatively elastic to price, meaning that customers are highly sensitive to price. See below graphs showing the inverse relationship between the total volumes sold and average price of soups.

Every day people use products without thinking about the significance of that particular product. Many people do not realize how important these products are and how much one product that is used every day affects the economic status of not only the country but the world. Wheat is used to make a large number of products which include beer and bread. The next few pages of this report will discuss how supply and demand for wheat shifts, how it affects price, and whether or not wheat is a luxury or a necessity will also be analyzed.

It is evident that the entire grade ‘A’ tomatoes is used. The shadow price for the slack variable in

Food is the foundation of human live and people cannot survive without it. Food security is a vital issue facing the governments around the world. However, food shortage is becoming increasingly severe in this day and age. There are several reasons which led to the universal food shortage and they are interconnected to each other. Increasing world population, extreme weather and the wide spread use of biofuels are the main causes of worldwide shortage of food. These factors lead to food price rises rapidly.

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).

• Primary commodities have fallen in price, or stayed steady, while commodities they need has increased, e.g. oil