Agricultural Product Markets and Industry Theory and Practice

Theory of Supply and Demand and Price Formation Mechanisms for Agricultural Products

Theory of Agricultural Product Supply

Supply is the unification of supply willingness and production capacity. All else being equal, the quantity of agricultural products supplied changes in the same direction as their price. Factors influencing the elasticity of agricultural product supply:

• Length of agricultural production cycles
• Ease of change in agricultural production scale
• Duration of the impact of agricultural price changes
• Magnitude of increase in agricultural production costs

Theory of Agricultural Product Demand

Demand is the unification of purchase willingness and purchasing power. The quantity of agricultural products demanded and their price change in opposite directions. Factors influencing the elasticity of agricultural product demand:

• The degree of consumer demand for a particular agricultural product
• The number and degree of substitutes for agricultural products
• The extent to which agricultural products are used
• The proportion of agricultural products in the consumer budget

Agricultural Product Prices and Their Formation Mechanisms

• Production costs: labor + agricultural inputs + land costs
• Distribution costs: transportation, storage, packaging, sorting, processing, handling, loss
• Profit: profit from farmers selling agricultural products + profit of intermediaries

Agricultural Product Marketing Strategies and Applications

Agricultural Product Quality and Safety

Industry Theory and Practice for Agricultural Products

Theory and Practice of Agricultural Industry Chains, Value Chains, and Supply Chains