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Key Stretch For Harvests - Assignment Example

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The United States is the world’s biggest exporter of agricultural products. The prices of food items behave according to the law of supply and demand. The writer of the paper "Key Stretch for Harvests" discusses some of the reasons global food prices are on the rise…
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Key Stretch For Harvests
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Key Stretch For Harvests

Download file to see previous pages... Another reason food prices are on the rise is that the demand for food in emerging economies is rising. Also, the world population is growing faster than the overall global production of food.
The food inflation in the U.S. for 2011 has been 4%, but it has not been higher because the restaurant and supermarket industries have absorbed the added costs instead of passing it to the customer as the industry usually does. The quality of U.S crops has done down as farmers have responded to high prices by planting more land and then producing price-depressing gluts (Kilman). The overall shortage of food is the primary reason the price of food items is on the rise. The supply is not sufficient to meet the demand. Another factor that is affecting adversely food shortages is bad weather and natural disasters which have destroyed entire crops of food. ...Download file to see next pagesRead More
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