Price of Agricultural Produces in China
|出版日期||內容資訊||英文 21 Pages
China as one of the largest agricultural countries, price of agricultural produces plays a decision role to reflect the overall prices trend in the market. It is considered as the price foundation among all commodities and result in volatility in overall price level. In recent years, rapid development of national economy and urbanization boost price of agricultural produces. Three main types of agricultural produces include cereal (wheat, rice and corn), oil-bearing crops (rapeseed, soybean and peanut) and vegetables will be analyzed in the report. Purchasing Price Index (PPI) will be used to analyze the price of main agricultural produces.
The report will process factor analysis of increasing agricultural produces prices and list five main reasons influencing change in price, such as: - Total costs; - Transportation cost and multifarious circulation links; - Minimum cereal purchasing prices; - Urbanization and change in consumption structure; - Adverse weather condition and natural disaster.
By adopting Grey Markov Forecast Model, it is predicted that PPI of cereal will increase steadily for a long time. However, oil-bearing crops' PPI will face a sharp decline from 2014 to 2015. At the end of this report, it will put forward four suggestions in order to stabilize price of agricultural produces as well as prevent and cope with the effects of inflation.
In China, the price of agricultural produces is the price foundation among all commodities. Price change of agricultural produces can lead to fluctuation in overall price level. With the rapid development of economy, agricultural produces did have increased in their prices in recent years. Since a kind of agricultural produces increases its price, it might cause instability of whole agricultural market. The representatives of main agricultural produces involve rice, corn, wheat, soybean, rapeseed, peanut and vegetables. In May 2014, price of cereal such as rice, corn and wheat, achieved a stable growth rate. Oil-bearing crops like soybean, rapeseed and peanut, experienced its prices declining initially and remained stable.
The main reasons of fluctuation in prices of agricultural produces are the increasing costs of production and transportation, miscellaneous agricultural produces circulation links, urbanization and change in consumption structure, factors of adverse weather condition, natural disasters and other factors. The price fluctuation has impact on the production of agricultural produces, income of farmers and overall market price.
In order to stabilize agricultural produces prices, the government should expand overall agricultural produces production capacity, and stabilize the sown area of cereal, oil-bearing crops as well as vegetables. Improving service system, establishing control system in food prices and strengthening price supervision in the market are important actions to reduce fluctuation in agricultural produces prices.