Question 1 Key Challenges: APML is a dynamic actor in the fruit and vegetable value chain. However, there are issues that threatens its sustainability; Decreasing farm gate-prices: the costs of production for fruits and vegetables is escalating but prices received continue to be low. Land Availability: land for fruit and vegetable production is getting smaller as most agricultural land is being developed for occupation. Water availability: scarce irrigation water as a result of continuous drought and competition from multiple consumers. Effects of Climate change: repeated crop failure due to unpredictable weather changes that affects fruit and vegetable production as it is highly sensitivity. High costs of inputs: prices for inputs such as fertilisers continue to upsurge due to less supplies available in the market. Food waste: Considerable waste due to poor post-harvest - handling techniques, domestic waste and supermarket shelves. Trader’s choice to sourcing directly from growers. Threat of imports: Giant multinational organizations running lucrative processing industries are preferring to obtain their fresh produce universally to cut on costs and maximize on productivity. Farmers supplying APML find it impossible to keep-up with the prices of the imported commodities that are below the production margin. Aging producers: the ‘average age’ of producers is increasingly going down and youthful generation is hesitant to join agriculture. Decreasing number of
farms to keep their prices low, can eventually cause the market to fail. (58) The article The
Modern day farming has transformed from the farming process of last century. Instead of farmers producing for their families, farmers are now similar to input/output managers supplying massive manufacturers that feed the country.
Alongside the growth of large farms, crops are being subsidized which leads to the prices of the goods being kept at a low price (Toews). For a family farm, this means producing a crop that is not cost effective which eventually drives the family farms out of business. Once these large corporations produce the crop, it is then shipped to the manufacturers
them when they are ready. With the increase in farmland, this means the farmers will have more
Times have changed, and so has the family, the community and our environment. And these changes have impacted our lives and earth immeasurably. This is where the factor greed comes in to play, the need for more. This need for more called for extensive measures, measures like fertilizers, pesticides and equipment to work the ground and harvest the crops became necessity. Agriculture became a booming business that did not and still does not promote the well-being of the employee nor the individual let alone the family unit and community. Since 1950 an average farm size has doubled, but the number of laborers decreased substantially and the number of small local farmers has been cut in half. Farmers have been forced to become more efficient and there 's been a reliance on greater chemicals and technology, which has become very extensive and expensive. Sadly, what has been short term expansion has become a long-term threat (Trautmann, 2012). This greed driven increase has led to subtle damaging ramifications that most people are ignorant to. Their needs are being met as quality is being forsaken. Our environment is being squandered. Selfishness abounds.
1 Farmers may not totally understand the product value. They may not easily accept new product that they have never heard about.
The rising costs of land and the simultaneous costs of water make it so 30% of farm households have negative income. The cost of sustainability, such a new tilling methods and access to water, also strains farms. This often leads to farmers self-exploiting themselves to try to generate the most crops possible and cultivate their land to the fullest extent.
But when wheat prices decreased, farmers needed to increase more produces to make ends meet
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, recent low prices have restrained investment, which in turn leads to poor management practices and strategies. In some cases, old trees have yet to be replaced, and pruning and care regimens are neglected or performed poorly due to lack of labor (Magrath 2014). The lack of investment is important for both finance and education. Smaller farmers often do not have enough money to gain access to resources that could help in instructing them how to use the land and regenerate their crops (Wakefield 2015).
The decreasing number of farmers in the US is one reason why people are losing knowledge of where food actually comes from. Agriculture gets lost with people who are
Drought is another factor of climate change that causes severe damages to agriculture and livestock. The effects of drought on agricultural production and livestock holding can be a detrimental issue and result in quality dissatisfaction of products. The agricultural industry can be affected by drought both economically and environmentally. The economical effects of drought on crops and animals can lead to the loss of money and time. When droughts occur farmers lose money because they will have to spend more money earned from their
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).
A recent report from HSBC isn’t quite so alarming…unless you read between the lines. “World agricultural markets,” it says, “have become so finely balanced between supply and demand that local disruptions can have a major impact on the global prices of the affected commodities and then reverberate throughout the entire food chain.”
Precipitation patterns and temperature alterations will lead to decrease in crop produce in most sub-tropical and tropical regions thus impacting negatively on sectors of Agriculture . Consequently, its effect will cause hunger in developing countries. In the last decade, there has been damage as a result of severe climatic conditions