The Role of Climatic Factors on Wholesale Prices of Fruits- Empirical Evidence of Pineapple, Wax Apple, Mango and Watermelon.
Date Issued
2015
Date
2015
Author(s)
Lu, Jen-Kai
Abstract
Because the elasticity of agricultural supply and demand is low, slightly changes of supply or demand side will cause moderest or large price fluctuations. In this study, the relationship of weather conditions on agricultural demand is focused. We use multiple linear regression model to examine how do the changes in consumer demand may lead to fluctuations in retail prices and how the effect may transfer into the wholesale market. Farmers are the product providers, but they are also price takers. In this research, we choose mango, pineapple, wax apple and watermelon as the four research subjects. Retail market volatility is affected significantly due to intolerant storage characteristics of wax apple. Mango is affected less significant by its preservation and processed products.. Compared to the rest of fruits, pineapple and watermelon which are more storage resistant, also are higher proportions to make fruit juice or other processed products, are not significant affected by retail-wholesale transfer effect. The results of this study can be useful for the government to stabilize the agricultural commodity prices in the retail and wholesale markets. In particular, this study has highlighted the importance of weather conditions on commodity prices. This information can combine the weather forecasting system to design a more effectivenss prevention system for natural disasters or other exogenous shocks that may affect agricultural commodity market.
Subjects
Climatic Factors
wholesale market
commodity market
retail price.
SDGs
Type
thesis