Section 1: Economics of my product
1.1 Evaluate the economic value of your product to the Australian economy which includes a graph that compares this value to three other products. /10
The Australian agriculture industry is vast and provides approximately $ 39 645.1million to the economy in 2009-2010. (2) To evaluate the place of the pork industry in Australia there are several factors we need to compare other industries with: Amount of properties, domestic gross value, and export.
There are 687 pig farms spread across Australia with none in the Northern Territory or Australian Capital Territory and with New South Wales and Queensland having the highest, 175 and 177 respectively. For the ACT it is not surprising that there are no pig farms being that there are only a total of 73 farms in the territory. The lack of pigs in the Northern Territory is due to the increased care and monitoring that would have to go into growing the pigs. This is as the Northern Territory’s climate is above the temperature thresholds of most pig varieties – the animal’s respiration …show more content…
When the price of a product is high, there is often a high supply and low demand whereas when the price is low there is often a low supply but a high demand. A farmer and their consumers have to find an equilibrium price at which the producer is happy to sell and the consumer is happy to buy. If the farmer, whilst trying to make a profit, increases the supply above the demand they are at risk of having a wasted product or having to sell for a loss. This then puts financial pressure on the farmer to find alternative sources of income. If the demand is higher than the supply the farmer is missing out on potential income which would be lost to competition. If a farmer produces above demand often and sells for a loss, they are at risk of having less of a chance of being successful in the future when applying for loans and
1.1 Evaluate the economic value of your product to the Australian economy which includes a graph that compares this value to three other products. /10
The Australian agriculture industry is vast and provides approximately $ 39 645.1million to the economy in 2009-2010. (2) To evaluate the place of the pork industry in Australia there are several factors we need to compare other industries with: Amount of properties, domestic gross value, and export.
There are 687 pig farms spread across Australia with none in the Northern Territory or Australian Capital Territory and with New South Wales and Queensland having the highest, 175 and 177 respectively. For the ACT it is not surprising that there are no pig farms being that there are only a total of 73 farms in the territory. The lack of pigs in the Northern Territory is due to the increased care and monitoring that would have to go into growing the pigs. This is as the Northern Territory’s climate is above the temperature thresholds of most pig varieties – the animal’s respiration …show more content…
When the price of a product is high, there is often a high supply and low demand whereas when the price is low there is often a low supply but a high demand. A farmer and their consumers have to find an equilibrium price at which the producer is happy to sell and the consumer is happy to buy. If the farmer, whilst trying to make a profit, increases the supply above the demand they are at risk of having a wasted product or having to sell for a loss. This then puts financial pressure on the farmer to find alternative sources of income. If the demand is higher than the supply the farmer is missing out on potential income which would be lost to competition. If a farmer produces above demand often and sells for a loss, they are at risk of having less of a chance of being successful in the future when applying for loans and