Impact of Commodity Prices on Agriculture Industry

Impact of Commodity Prices on Agriculture Industry Cheryl Crispo Question 1(i). If there is a shortage in workers in the agricultural sector, wages will increase to attract and keep staff. This causes a shift in both the derived and primary supply curves occurs upward and to the left thereby decreasing quantity and increasing price. The change in prices on farm is reflected in both derived supply and primary supply curves are shown below in Figure 1. The margin is not significantly altered between the retailer and the farmer as it is shared between them (University of New England, 2014, pp. 10 Annotated Notes). Figure 1 Change in Labour Costs The primary demand and derived demand curves are not affected by the change in labour (input) price. Question 1(ii) Retail margins should be considered to have a greater margin for a number of reasons. Firstly, retailers may have anticipated price changes and have already elevated their price so a small increase can be absorbed readily and menu costs would be low. Secondly, cost increases may immediately be passed on to consumers whilst cost decreases are not passed on for a period of time. Lastly, the buying power of the retailer is much stronger than an individual farmer (or possibly even an industry agent) this may force the farmer to accept a lower price increasing the retailers margin. Question 2 The AECL is a voluntary organisation for egg producers in Australia (Australian Egg Corporation Limited). The AECL is attempting to utilise its membership in a cartel arrangement by â€Å"encouraging† their members to decrease the supply of eggs to market. The Australian Consumer and Competition Commission frown on cartel type arrangements as they are anti-competitive and are attempting, illegally, to control supply. Non-members can still produce as many eggs as they wish without this restriction. This in turns encourages members of the cartel to produce more or break the rules to remain competitive in the market. Question 3 The article outlines a number of key issues in respect to future productivity of the Australian agricultural sector. Research and Development It has been noted that the level of publicly funded research and development into agricultural commodities has decreased over the past few decades. Research and development is paramount to the ever increasing demand for agricultural commodities to fuel an ever increasing population in the long run. Methods to improve technology to decrease production costs, increase yields, and possibly more importantly to improve the effect on the environment and manage the risk of climate change. This improvement may entail improving the efficiency of the farm: i.e. using the less inputs to obtain an equivalent volume of output or altering the size of the farm so that scale efficiecieces can be utilised. With scarcity of resources such as land, water and also crop choice, the choice of commodity being produced with limited resources needs to be researched and evaluated: drought resistant crops, irrigation or other methods that will produce high yields, do not provide excessive externalities to the environment but also cam stand up to the changing climate of Australia need to be considered. Research and development comes at a significant cost, but the returns on the investment can be up to 40%. This research comes also at a significant time cost: the time spent on finding new production methods can be very extensive, take a long time to implement (depending on the production life cycle) and even longer time to have the outcome truly realised. Resource competition As with all resources, there is a finite amount of resources for production: whether it be available land, labour or capital, there will always e competition to achieve the highest amount of utility from a resource. If an employee can receive better wages working in the mines, then agricultural labour will shift as more employees leave for other industries. The wages of the existing (and new) agricultural workers will increase and the number demanded will decrease. From the farmers point of view, if a particular commodity is receiving a higher net price, the decision will be made to produce the commodity that will provide the greater profit, whether it be wheat, beef or mining or a combination of all three to maximise the profit to the farmer. The higher prices received by mining is a significant factor in farmers choosing mining over agriculture. The mining resource boom has also led to the Australian dollar being valued more highly in foreign exchange markets. Other sectors have not faired so well with this boom: they may receive a decrease prices for domestic commodities in the international markets. The Environment and Climate Change Climate change, and the environment in general, is a very complex, misunderstood, controversial and political issue that will plague the agricultural industry for many years to come. Its true effects cannot be measured readly – for example, has the effect on agriculturall output been due to climate change, poor management or a cyclical or unexpected series of events naturally occurring in natire? As mentioned previously, research and developmemt can assist farmers to improve the technical efficiency of farms but is often not included in productivity calculations. The risk from the environment can be mitigated (i.e. floods, drought, pests etc.) but these risks need to be established before production begins. Is it noted that figures within the article were devoid of climate change effects: externalities both positive and negative were also excluded. It appears that even though the environment is pivotal to agricultural production the long term effects are not taken into consideration. Therefore standard productivity calculations appear to be biased towards production inputs and only partially represent the actual productivity of the farm in question. The Total Factor of Production (TFP) The TFP figure can be misleading if all factors of production are not considered as a whole. An individual farm may produce multiple commodities (i.e. wheat and cattle) to doversify their risk and maximise profit. The TFP measure does not segregate the factors of wheat production and the factors of cattle productin: the technology such as irrigation systems, skilled (or unskilled) labour, farm equipment (tractors), grain / feed storage may habe dual purposes. By isolating specific on-farm functions only a partial analysis can be formed: there may be significant interdependencies between the commodities (i.e. the land may be left fallow for 1 season to allow the cows to fertilise therefore the land is regenerated and fertilised and less chemicals are required once planting resumes on this land). The standard TFP equation does not indicate from where the productivity gains (losses) originate from: it is only a measure of how much is changed. There are a number of aspects to consider, as mentioned previously, including scale and technical inefficiencies. The farmer can review the output to establish whether with the same inputs, that outputs could increase. Secondly, the farmer could also research, ecoomtrically, that the same output could be achieved by having a smaller land size. Maximum output is not always best when the quality is not at an acceptable standard. As farmers are profit maximisers they need to look deeper into their production methods to improve their profits and efficiency. International Efficiency Productivity is undoubtedly of the most significant issues in internatopnal competitiveness. Resource usage both on the domestic and internatoomal stages, is to use inputs efficiently within the agricultural sector so as to maximise revenue, but also keep the resources in the hands of farmers not other industries. In comparison to other sectors in the economy, from 198-2011 agriculture has been the highest growth rate by far. It is interesting to note that the growth rate for all sectors has been steadily decreasing since 1986 with a few minor exceptions. Has the lack of Australian research and development in these sectors contributed to only 0.9% increase over 25 years? It is also clear that the methods of evaluating productivity need to be taken into consideration when reviewing or analysing productivity data. The two institutions mentioned, ABS and ABARES are using difference performance criteria and sectoral data. When analysing different domestic and international segments, the performance criteria should be the same to avoid potential analysis errors. Conclusion Commodity prices will always be volatile – it is the nature of agriculture. It is noted that government intervention, that has been prevalent in the past, may not be necessary to maintain adequate food supply. The future of Australian agriculture is healthy, however steps must be take to ensure that appropriate and targeted research and development is increased rather than removed to ensure an adequate food supply but also ensure that the resources required are not depleted through transferrance to another industry or through environmental degradation.

Effects of Fast Food on Your Body

The objective of this research proposal is to closely examine the effects of fast food in one’s with relations to obesity and to find the truth behind these scrumptious but unhealthful cuisines. In America today, fifty percent of the money used to buy food by consumers goes into these fast food restaurants. With this percentage, the consumption of fast food is extremely high. Studies have shown that an excessive intake of fast food can lead to an unhealthy diet and can cause obesity. For my preliminary investigation, factors will be revealed of the truth behind fast food thus a research question will be generated and directed towards my final research project. All over the world, at every corner one is bound to bump into a fast food restaurant, whether it is McDonald’s, Burger King, Wendy’s, or even Taco Bell. From my initial research, I found numerous articles, journals, and a documentary proving that these â€Å"convenience† foods can lead to obesity. The intake of fast food has greatly increased in the past 20-30 years. Since the increase, obesity has become an epidemic. For many years, society has been exposed to fast food for countless number of times. From this, obesity is becoming a major issue in the United States. For many people, it is the easiest and fastest way to get a meal. Hence the word â€Å"fast food. † In addition, the public finds these foods as satisfying and inexpensive. In today’s society, people are always â€Å"on-the-go† and therefore try to find the quickest way to grab a bite. Many average people go to a fast food restaurant to take advantage of its convenience and reasonable price. From experience, fast food has been a â€Å"replacement† when home cooked meals were not around. There have been consecutive times when my body has digested a McDonald’s meal for more than twice a day. These meals substituted the breakfast, lunch, and dinner of the day. From then, an unhealthy diet was about to emerge. As a precaution, it is best to know the negative factors of excessive intake on fast food. In the book â€Å"Fast Food Nation† by Eric Schlosser, he states that the United States spends about half of their money eating at fast food restaurants. Their all-time favorite fast food chain is none other than McDonald’s. It is now the biggest and well-known chain in the world. McDonald’s holds about ninety percent of the country’s new jobs. Many consumers are unaware of how much they spend daily at these restaurants. â€Å"Hundreds of millions of people buy fast food every day without giving it much thought, unaware of the subtle and not so subtle ramifications of their purchases. They rarely consider where this food came from, how it was made, and what it is doing to the community around them. † (Schlosser, 10) Schlosser wrote â€Å"Fast Food Nation† to inform readers the truth that lies beneath those mouth-watering patties, flavor enhancing condiments, â€Å"healthy† salads, and soft buns. Fast foods can be just as addicting as drugs. Everyone knows that too much of anything is bad for the body. According to a journal article entitled â€Å"Fast Food: unfriendly and unhealthy†, the author, Steen Stender, states that, â€Å"Individuals who had meals at fast-food restaurants more than two times a week gained 4. 5 kg more weight and had a 104% greater increase in insulin resistance, at both baseline and follow-up, than individuals who ate less than one fast food meal per week† (887). From this study, it shows that fast food can have a great impact in one’s body. Eating fast food uncontrollably can lead to obesity, but it can also lead to type 2 diabetes. â€Å"Fast Food Linked to Child Obesity† discusses about children who have a great intake on fast food can lead to obesity. From this amount, it has given them more calories than the usual causing them to gain about six more pounds per year. The article also states that about one-third of the United State’s youth population is obese. It proves that there really is a factor in too much intake on fast foods. In the article â€Å"Are fast food restaurants an environmental risk factor for obesity? † by Robert W. Jeffery, it testifies that obesity has increased in the past 20-30 years. These increases are due to the fact of physical and social factors, and not biological. A telephone survey was conducted and concluded that children eating at fast food restaurants has made them obese and increased their Body Mass Index (BMI). Another journal article found was â€Å"The Link between Fast Food and the Obesity Epidemic† by Dustin A. Frazier. Some of the factors that have caused obesity among children who eat too much at fast food restaurants include the lack of exercise, increased calorie intake, and the laziness performance due to technology. The significance of technology today is that children have become victims of laziness thus they lack the proper exercise needed to stay fit and healthy. For those reasons mentioned above, what are the factors of excessive intake on fast food? One does not realize that consuming too much fast food can lead to a more serious problem. These problems can include an unhealthy balanced diet which can lead to type 2 diabetes and obesity. One should take extra precaution next time when ordering a Big Mac. Also, has the government taken any actions to stop this epidemic happening? Are there laws made for fast food restaurants to protect themselves from consumer who wishes to sue these restaurants because of an unhealthy menu? There must be some defense that helps these fast food restaurants stay open although they have an unhealthy menu that can trigger the body one way or another. As the old saying goes, â€Å"You are what you eat. † Therefore, one should caution themselves on what they consume into their body. References Frazier, Dustin A. â€Å"The Link between Fast Food and the Obesity Epidemic. † Health Matrix: Journal of Law Medicine. 17. 2 (2007) 291-317. Holguin, Jamie. Fast Food Linked to Child Obesity. † CBS News: Health. 5 January 2003. < http://www. cbsnews. com/stories/2004/01/05/health/main591325. shtml>. Jeffrey, Robert W. , et al. â€Å"Are fast food restaurants an environmental risk factor for obesity? † The International Journal of Behavioral Nutrition and Physical Activity. 25 January 2006. < http://www. pubmedcent ral. nih. gov/articlerender. fcgi? artid=1397859>. Schlosser, Eric. Fast Food Nation. New York: Houghton Muffin Company, 2001. Stender, Steen, et al. â€Å"Fast Food: Unfriendly and Unhealthy. † International Journal of Obesity. 31. 6 (2007) 887-890.

People with Terminal Illnesses Should Have the Right to Doctor

People with terminal illnesses should have the right to doctor assisted suicide Assisted suicide should be allowed as a valid option for anyone who is suffering a terminal illness. People don’t want to live uncomfortably or without use of all the functions that they currently possess. Individuals should be allowed to make the decisions on what is right or wrong for them, and that includes living or dying.Thus, people should be given the right to assisted suicide in order to end their suffering, reduce the damaging financial effects of hospital care on their families, and preserve the individual right and dignity of people to determine their own fate. For many people who with terminal or chronic illnesses that cause them constant severe pain may want to die peacefully instead of suffering until they succumb to their illness. It not only calls on doctors to make an unreliable prediction, but prescribes a pointless time limit: The longer the life expectancy the greater the patien t's suffering.The essential elements for legislation are that the condition is irremediable by medical treatment and the suffering is intolerable to the patient (Eric Gargett). Actually, it should not be up to a doctor or other family members as to whether a person should be forced to continue living. No one wants to be in pain or see their loved ones in pain. This is a very real fear people may have. If someone is suffering so badly that there is no point to his / her life then he / she should be given the choice and ability to end it.It is certain circumstance where assisted suicide should be legalized in the case of LAU 2 someone no longer has any quality of life. Also, there are certain illnesses that are very horrible and painful to live through where even such strong drugs as morphine can do nothing. In this circumstance people should be given the freedom to doctor assisted suicide to ease their pains. It should be the choice of the individual first and foremost and then back ed by their family before carried out.In addition, personal right to a doctor assisted suicide is that we, as humans, should respect other people’s wishes and dignity. The Code of Health and Disability Consumers Rights 1996 Right, it states that every consumer has the right to refuse services and to withdraw consent to services. The right to refuse medical treatment under the Bill of Rights Act and the above Code is limited to people who are competent to refuse consent (James L. Werth and Debra C. Cobia). If someone feels their life is not worth living anymore and has thought carefully about ending their life then we should respect this decision.Everyone has an obligation to relieve the suffering of his / her fellow human beings and to respect his / her dignity. Lying in hospitals today are people afflicted with excruciatingly painful and terminal conditions and diseases that have left them permanently incapable of functioning in any dignified human fashion. They can only loo k forward to lives filled with yet more suffering and deterioration. When such people beg for a merciful end to their pain and indignity, it is cruel and inhumane to refuse their pleas.Besides this, people should have a moral right to choose freely what they will do with their lives as long as they inflict no harm on others. This right of free choice includes the right to end one's life when people choose. LAU 3 Furthermore, patients with terminal illnesses are not willing to be seen as a ‘burden' on their loved ones. In 1991, a survey, conducted by the Boston Globe, showed that the main reason people with an â€Å"incurable illness who suffered a great deal of physical pain† would consider ending their lives was because they â€Å"don't want to be a burden† to their families.They were not primarily concerned with the pain or even the restricted lifestyle (Knox, R. A). With today's rising health costs and the busy lifestyles, many people don't want to leave their families with the financial burden of long hospital stays and enormous medical bills that come with being ill for a long time. While patients realize the longer the life expectancy the greater theirs suffering, they prefer to choose ending their pains with a doctor assisted rather than alive, and that’s the way they want to show their loves of their families.Hence, this should be a decision made by individuals with the help of their doctors and families, and should definitely be a right of all people. Finally, people with terminal illnesses should have the right to doctor assisted suicide. It is one of the most basic personal freedoms of a human being whether to continue living, and it is no one else's right to decide if another person should be forced to live. As long as the person requesting the assisted suicide is well informed and in their right state of mind, there is no reason for someone to tell them they are forced to live.In many cases, the amount of excruciating pa in that a person may be enduring could make life miserable, and should not be forced upon any one. For most people, the right to end one's life is a right they can easily exercise, but there are many who want to die, but whose disease, handicap, or condition renders them unable to end their lives in a dignified manner. When such people ask for assistance in exercising their right to die, their wishes should be respected.

The Role Of Happiness In Ernest HemingwaysThe Sun Also Rises

In the novel The Sun Also Rises, Ernest Hemingway describes the two stages of every bankruptcy: â€Å"‘Two ways’, Mike said. ‘Gradually and then suddenly’† (56). Hemingway’s description of bankruptcy closely reflects the rise of social media as it has become the primarily medium of interaction within society. Subsequently, there have been questions raised about how this radical shift in interactions affects the means of achieving a happy life. Within academia, happiness is described as a sense of well-being and is generally associated with a combination of one’s state of mind and genetics (Lyubomirsky). These genetic effects are culminated in the term â€Å"happiness set point†, a natural proclivity towards a certain level of happiness. Today, both†¦show more content†¦Even further, Adam Piore of the online magazine, Nautilus, claims that social media improves social relationships by creating new mediums of communication. Though there is polarization in how social media affects users’ ability to achieve happy lives, the rise of social media refutes Sonja Lyubomirsky’s perspective on happiness, which attributes happiness to primarily a person’s genetics. The effects that social media has on users’ happiness, depending on the choices of the users, demonstrate that Lyubomirsky underestimates the effects that circumstances and personal choices have on happiness. To begin, the existence of social media platforms, and the subsequent opportunities they create refutes Lyubomirsky by demonstrating the importance that societal circumstances have on happiness. For example, when describing the Happiness Twins study from the University of Minnesota, Lyubomirsky claims this study concludes that â€Å"†¦the average happiness of your identical twins is a much more powerful clue to your happiness than all the facts and events of your life! (Lyubomirsky 188). Lyubomirsky also later a dvises the readers that â€Å"we are also unlikely to find lasting happiness by changing our life circumstances† (195). Lyubomirsky’s portrayal of the complexities of happiness favor a deterministic view that implies that humans have limited control over their happiness. However, research from Robert E. Kraut finds that regular