Impact of Changing Harvest Conditions - Market Inter-Relationships [Virtual Learning Arcade]

Hints on Changing Harvest Conditions For Growers

Advantages

The harvest conditions will influence the market supply. For instance, poor harvest conditions will reduce the quantity of coffee on the market (market supply will fall). As a consequence, the market supply of coffee will fall.

The decrease in market supply will cause the price of coffee to increase. This will have further impacts on other markets. For instance,

The increase in demand will cause the PRICE OF COFFEE TO INCREASE. This will have further impacts on other markets. For instance,

  • Tea (SUBSTITUTES) DEMAND will INCREASE
  • Milk (COMPLEMENTS) DEMAND will DECREASE

The Model Settings

The starting level of harvest conditions is set at stable. The input parameters can range between good, stable and poor.

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