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Agricultural dilemma - external forces/impacts on the farming industry which causes the market to struggle - Term Paper Example

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Human sustainability is highly dependent on availability of agricultural produce. Human existence will be curtailed without enough agricultural production in the…
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Agricultural dilemma - external forces/impacts on the farming industry which causes the market to struggle
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Agricultural dilemma - external forces/impacts on the farming industry which causes the market to struggle

Download file to see previous pages... The global demand for agricultural production increases at a rate of 6 percent annually thus several measures must be undertaken to increase the supply of the agricultural production and meet the demand. Strategic planning process must ensure all stakeholders have relevant information on the external environment trends and factors influencing the trends in the external market. According, agricultural managers and other relevant stakeholders must undertake measures to mitigate the negative impact of the external forces that may negatively affect the productivity of the agricultural industry (Ridout, 2002).
Suppliers in agricultural industries have the potential of creating competitiveness in the industry by implementing innovative farming techniques and understanding the trends in consumption in the market. Some factors that influence demand of agricultural products include the changes in income levels, changes in consumer preferences and shifts in consumer tastes. The production levels of agricultural produce are basically driven by factors of demand and supply and suppliers undertake measures to fulfill the demand in the market. For instance, the increase in human population both in rural and urban settlements has increased the demand for agricultural products. Accordingly, the emergency of modern farming technology has created demand for high quality agricultural products thus affecting the consumer preferences. In this case, a decline in consumer incomes leads to a decline demand for the products thus culminating to a decline in the prevailing market prices. Accordingly, an increase in the prices will lead to an increase in supply, but this trend will negatively affect the demand of the products in market. In this case, excess supply leads to decline in process while excess demand leads to an increase in the prices of the products. (Sarris & Hallam, 2006).
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