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Adam Seldis

BBC News - Who what why: Why is there more oilseed rape being grown? - 31 views

www.bbc.co.uk/...magazine-18249840

Demand & Supply

shared by Adam Seldis on 30 May 12 - No Cached
Adam Seldis liked it
  • Why is there more oilseed rape being grown?
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This looks like it might a supply issue - so microeconomics supply and demand
  • more than ever before
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So there has been a shift outwards in supply. I can show this on a diagram. However I need to explain why it has shifted.
  • rocketing prices as it becomes more desirable for food
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So the only way this can be explained is that demand has increased more than the increase in supply, therefore leading to a 'rocketing' in prices. Again, would be good if I could explain why.
  • ...9 more annotations...
  • £388 per tonne, which compares to £240 in 2010
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      I can use these numbers on my diagram. 240GBP was the original equilibrium price, 388GBP the new equilibrium.
  • 698,000 hectares in England and Wales and around 37,000 hectares in Scotland have been sown with oilseed rape this year, up about 6% on last year
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      Again, I can use these figures in my diagram on the Quantity axis.
  • rapeseed oil is actually one of the highest quality vegetable oils, and it has gained a certain culinary respectability over recent years.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This explains the shift in demand
  • "It's being used as mayonnaise, in margarine, salads, anywhere vegetables are used. It has a good health profile, has low saturated fat, is high in omega-3, and some claim it is better than sunflower oil," he say
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      As does this.
  • The UK's "consistently high yields" of rapeseed have made the crop a success, according to Gagen.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This partly explains the shift in supply
  • Other places like Germany, Poland and Ukraine have had a dreadful winter, the crops were exposed to severe cold temperatures, I suspect the French suffered as well.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      I can bring in here the concept of substitute goods - that German etc rape crops are a substitute good. That their fall in supply will have lead to an increase in the price for them, leading to a fall in demand. This will have lead to an increase in demand for UK rape crops. Could show this diagrammatically if needed.
  • and they are 45% oil - and the other 55% is high protein animal feed - they are an amazing piece of nature," he says. Burnett says oilseed rape is also being used for biodiesel, while a very small amount has specialist industrial uses, for instance as lubricants.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      Again, this explains the surge in demand. It has a number of different uses. (Called composite demand).
  • Burnett says oilseed rape has probably been more visible this year because it has flowered for almost twice its normal length of time - eight weeks, instead of four - as a cold and wet April and May stopped flowers developing and dying at their normal rate.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      We could start to use this as some kind of evaluation - the fact that there might not have been a shift in supply at all.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So, overall, I could write a commentary about how a small shift in supply and a large shift in demand has led to an increase in the price for rape seed. I can easily show this with a diagram and explain the factors behind each movement. I would need to show the shift in supply being less than the shift in demand. For evaluation I could start to look at the impacts of PED and PES. Might they be inelastic or elastic and how might this impact the price mechanism. I could also speculate a little about what might happen in the future, based on the information in the article, and its impact on the price of rape seed in the UK
  • Adam Seldis on 30 May 12
     
    This is the article I would like you to read first. You may not use this one in the future.
Marika Shimomura

Brazilian Coffee Minimum Price Raised 17% to Aid Farmers - Bloomberg - 2 views

www.bloomberg.com/...-raised-17-to-aid-farmers.html

shared by Marika Shimomura on 31 May 13 - No Cached
  • Brazilian coffee producers will harvest between 47 million bags and 50.2 million this year, approaching last year’s record 50.8 million bags, the government said in January.
    • Marika Shimomura
      Marika Shimomura on 31 May 13
       
      Excess supply leading to the prices declining
  • such as auctions or measures to compensate sales below minimum price
    • Marika Shimomura
      Marika Shimomura on 31 May 13
       
      Government intervention
  • minimum domestic price
    • Marika Shimomura
      Marika Shimomura on 31 May 13
       
      Minimum price
  • ...4 more annotations...
  • international prices
    • Marika Shimomura
      Marika Shimomura on 31 May 13
       
      Decrease in demand leading in decrease in international prices
  • 307 reais ($153) per 60-kilogram (132- pound) bag, from 261.69 reais
  • Brazil reaped a record crop in 2012
    • Marika Shimomura
      Marika Shimomura on 31 May 13
       
      Increase in supply
  • increase
Yuuji Mitsuta

Europe's (olive) oil crisis - CNN.com - 5 views

edition.cnn.com/...index.html

shared by Yuuji Mitsuta on 31 May 12 - No Cached
    • Yuuji Mitsuta
      Yuuji Mitsuta on 31 May 12
       
      Demand has decreased due to economic crisis
    • Yuuji Mitsuta
      Yuuji Mitsuta on 31 May 12
       
      EU intervention to reduce surplus of olive oil and incomes in rural areas of spain
  • plunged to a 10-year low as domestic consumption in the top producing southern European countries has fallen because of the economic crisis
    • Yuuji Mitsuta
      Yuuji Mitsuta on 31 May 12
       
      Demand has decreased due to economic crisis
  • ...3 more annotations...
  • price of premium-quality extra virgin olive oil in the wholesale market fell this month to $2,900 a tonne,
    • Yuuji Mitsuta
      Yuuji Mitsuta on 31 May 12
       
      Decrease in price due to decrease in demand
  • suffering from strong competition from cheaper varieties of vegetable oil.
    • Yuuji Mitsuta
      Yuuji Mitsuta on 31 May 12
       
      Substitute goods present, so has a higher PED. has lower demand compared to vegetable oil
  • This crop is vital for the main producing countries in terms of maintaining employment in their rural areas
Yuuji Mitsuta

Europe's (olive) oil crisis (2) - 4 views

www.news.lk/...2225-europes-olive-oil-crisis

shared by Yuuji Mitsuta on 06 Jun 12 - No Cached
  • ompetition from cheaper varieties of vegetable oil
  • 10-year low as domestic consumption in the top producing southern European countries has fallen because of the economic crisis.
    • Yuuji Mitsuta
      Yuuji Mitsuta on 07 Jun 12
       
      Decrease in demand
  • coincided with a bumper olive crop in Spain,
  • ...2 more annotations...
  • The price of premium-quality extra virgin olive oil in the wholesale market fell this month to $2,900 a tonne, the lowest since 2002 and down more than half from nearly $6,000 a tonne in 2005, according to the International Monetary Fund.
  • The EU has tried to deal with the surplus by paying companies to stockpile oil
Christina Seward

US subsidy decision welcomed | Business | The Guardian - 1 views

www.guardian.co.uk/...fairtrade.ethicalliving

shared by Christina Seward on 06 Jun 12 - No Cached
    • Christina Seward
      Christina Seward on 06 Jun 12
       
      with no cotton subsidy from the government, what effect will that have on the market?
    • Christina Seward
      Christina Seward on 06 Jun 12
       
      this is whats happening now. with the subsidy, it means that the US cotton market is going well because they can sell more with the subsidy from the government
    • Christina Seward
      Christina Seward on 06 Jun 12
       
      what effect the US having no subsidy on the cotton will have for the 3rd world cotton that is being sold as a second to the US cotton
  • ...3 more annotations...
  • Subsidies paid by the US government make it financially viable for textile manufacturers to buy expensive US cotton rather than cheaper, third-world cotton
  • Oxfam estimates that poor African cotton-producing countries missed out on almost $400m (£230m) in revenues between 2001 and 2003. About 10 million Africans depend directly on the crop for a living.
  • World Trade Organisation.
Yihan Li

$6 billion-a-year ethanol subsidy dies -- but wait there's more - U.S. News - 2 views

usnews.msnbc.msn.com/...sidy-dies-but-wait-theres-more

shared by Yihan Li on 07 Jun 12 - No Cached
  • America's corn farmers have been benefiting from annual federal subsidies of around $6 billion in recent years, all in the name of ethanol used as an additive for the nation's vehicles.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      A supply and demand diagram showing how the loss of subsidy should affect price
  • thanks in part to high oil prices that make ethanol competitive.
    • Yihan Li
      Yihan Li on 13 Jun 12
       
       Ethanol is a substitute good of oil. High price of oil thus make ethanol relatively cheap (Calculate XED if with sufficient data)
  • tax credit
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      tax credit is "sum deducted from the total amount a taxpayer owes to"  
  • ...4 more annotations...
  • tax credit is up to $1.01 per gallon.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      Tax credit, a form of subsidy, keeps the price low and companies profitable. 
  • corn ethanol, which now takes a larger share of the U.S. corn crop than cattle, hogs and poultry, as a factor in driving food prices higher.
  • What the industry doesn’t want to see, however, is an end to a separate tax credit for ethanol made not from corn but non-foodstuffs like switchgrass, wood chips and even the leaves and stalks of corn.
    • Yihan Li
      Yihan Li on 13 Jun 12
       
      Possible evaluations 1) why government wants to keep one type of subsidy while getting rid of the another type? 2) pros and cons of keeping this subsidy 
  • That ends on Jan. 1
    • Yihan Li
      Yihan Li on 13 Jun 12
       
      Possible evaluations 1)pros and cons of having subsidies for ethanol 2)was the subsidy effective 3) why did the government implement this in the first place 4) what could the government have used other than tax credit
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