Potato Price Analysis: Oil Prices, Demand, and Supply Dynamics

This report provides a comprehensive analysis of potato prices as a key food commodity, examining the influence of demand and supply dynamics, oil price fluctuations, and other significant factors. It explores the role of potatoes in the global food market, emphasizing their importance as a food security crop. The analysis delves into statistical representations of potato prices over time, including inflation-adjusted comparisons, and investigates the impacts of external factors such as changes in oil prices, substitutes, and complementary goods on potato demand. The report also covers the concept of elasticity of demand and supply, and discusses how substitutes and complementary commodities affect potato prices. Furthermore, the report highlights key trends in potato consumption, production, and trade, and references relevant research to support its findings. Overall, the report offers a detailed overview of the various elements influencing potato prices and market trends.

 INTRODUCTION
 Potato as food commodity
 Statistical representation
 Changes in the oil prices in last 10 years
 Impact of change in oil price on the potato
 Concept of demand and supply analysis
 Impacts of other factors like substitutes and complementary goods on demand and
world food price
 Concept of elasticity of demand and supply
 Substitutes and compliments commodities/products have impacted on the pr
 Conclusion
 REFERENCES

Food prices have been considered
as the average price of particulars goods
commodities in the global world and across
different countries.
The price of different goods does not only
provide up as important indicators
balancing between agricultural production
and market demand.
This also helped increasing up strong
impact om food affordability and income in
specific manner.

 Potato as food commodity
 Potatoes (Solanum tuberosum) are the third most important food crop in
the world in term of the global consumption and been highly
recommendable by the Food and Agriculture Organization of the United
Nations as a food security crop as the world faces a growing population
and related problems with food supply.

Potatoes have remained up as part of tope vegetables crop in many countries
especially united states growing up commercially in more than 230 states in 2017.
The totals 1.05 million are of potatoes have been only harvested in US increasing up
the price rates from $0.02 to $9.10 per cwt. The total value of the potato crop was
$3.71 billion.
 The key point which are needed to remembered regarding the importance of
potatoes asIn the year 2005, for the first times developing world potatoes have exceeded up
production of developed countries.Subsistence’s potatoes are growing up in the developing countries is declining
as producers reorient toward domestic and international markets.Global consumption is shifting toward fresh potatoes to get into the value-added
processes products. Internationally, the value and volumes have traded processed products far
outweigh trade in fresh tubers.

 According to the U.S. Bureau of Labour Statistics, prices for potatoes
were 4,071.54% higher in 2020 versus 1939 (a $814.31 difference in
value).
 More specially have to be arranged between there year 1939 and 2020.
 Potatoes have experienced the average inflation for 4.71 %per years.
 More specifically it can be stated as for example potatoes is costing $20
in the year 1939 would cost $834.31 in 2020 for an equivalent purchase.

 Oil have been considered as black gold taking up the part as part on the
long-term investments carry less risk than short term ones.
 Changes in the price of crude oil have the consisting of various factors
such as the
 Geopolitical turmoil
 economic growth
 soaring U.S. shale production
 OPEC’s various policies marketing up as the trends in old prices.

 Oil prices have impacted the increase in price of goods. The crude prices
are looking the increased manner of sustainability.
 But its use in passenger cars peaks in the late 2020s due to fuel efficiency
improvements and fuel switching, mainly to electricity.

Potatoes is one of the main food commodity whose prices affected by
demand and supply.
In this analysis, relationship arises between the quantities of commodity
of food such as potatoes that producers wish to sell at different prices and
the quantity that consumers wish and require to buy.
World demand for potatoes is undergoing important changes in terms of
localisation and consumption

 These two laws of demand and supply determine the actual market price
as well as quantity of goods that are traded on a market.
 Rather than this, there are several other independent factors that also
affect both prices and quantity of food products that can be observed in
the market.

 There are several independent factors that also affect prices of potatoes
and also to both demand and supply.
 Such factors mainly include: weather condition, transportation charges,
irrigation facilities, substitutes of products and others.
 One of the main factor that majorly affect prices, demand and supply is
weather condition and transportation charges.

 With high labour as well as transportation cost, prices of potatoes are
being raised by considering margin and cost of infrastructure.
 Retailers cannot sell below 30kg so, 8-10 kg differences is normal in this
case for earning money and set profit margin.
 Government also hold control on wholesale market but retailers are the
one that remain out of control.

 Other main factor that also affect prices, demand as well as supply of
food commodity is weather and climate change.
 Due to changes in climate like heavy rain and other than can affect crops
and food commodity can also affect prices.
 Due to loss because of climate and weather change, prices are being set
higher than before and people have to buy them if they want to consume
that food commodity.

 In the past two decades the demand for
potato has been decreasing, there are
various factors which are been involved
in reducing down demand for potato.
 Demand for convenience product is been
increasing and also it is really useful for
the buy lifestyles which has been
implemented by so many people.
 It has also been analysed that there is an
increase competition for substitute
products such as rice and pasta.

 From the above study it has been summarised that price of potato
is been affected because of many reasons.
 One of the major reason is consumers are making use of substitute
food products such as rice and pasta.
 This has affected the price of potato and it has been lower down
because of this reason.
 It has also been analysed that also the health consciousness of
customers have been increasing they wanted to consume products
which are healthier and have low calorie.
 This is the reason price of potato is been affected by this.

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