Question

hr 1. Between 1996 and 2016,potato consumption declined. Use the analysis of long-run trends discussed in class to propose what happened to long-run supply and demand. 2. How do commercial potato growers and potato buyers conduct themselves? Why is this important to know?

Answer 1

1.

The organic market components influencing the homestead level cost for Irish potatoes has experienced significant change over the most recent two decades. On the interesting side, per capita utilization has diminished by very nearly a half, and the utilization of potatoes has moved from utilization of table stock potatoes towards more prominent degrees of handled potato items. On the stockpile side, residential creation levels of potatoes diminished by a little more than 30 percent, while cultivator numbers diminished by more prominent than 75 percent over a similar period.

There are two effects which could be considered as negative influencing factors on the outlook for the potato
sector:

(i) the decreasing overall demand for potatoes from the home market and

(ii) the increase
in demand for processed products which has not traditionally been serviced by domestic
producers, rather it is serviced by imports from other EU countries

Notwithstanding, against the general worldwide increment popular for potato items, the principle utilization patterns important to the Irish market is identified with the general diminishing pattern for potatoes in increasingly rich social orders.

In the more created economies of the world, the interest for table potatoes is falling as shoppers have turned out to be in an ideal situation monetarily and eating way structure home turns out to be increasingly pervasive.

Furthermore, the worldwide interest for solidified and other handled potato items has expanded in late years. This pattern is especially clear in

North America and Europe but on the other hand is getting to be obvious in developing worldwide economies.

2.

The buyers and growers must have a good conduct for a long term production and gain the trust of each other. Trust is conceptualized as honesty and goodwill. It has 8 variables,

• Flexibility
• Price Transparency
• Relative price
• Communication
• Dependancy
• Reputation
• Price Quality Ratio

Only if they can fulfill the satisfaction of each other and the consumers,then their production will and can prosper.