Factors Affecting Food Supply Flashcards
Embargo
An official ban on trade or other commercial activity with a particular country. May be introduced for political or health reason. Australia banned live trade(political) and imported hepatitis berries(health)
Tariff
A tax or duty to be paid on a particular class of imports or exports. Apply tariff if you want food more expensive, take away tariff if you want food to be cheaper. Aus puts tariffs on imported goods to control availability and encourage people to buy local
Subsidies
A sum of money that is granted by the state or public bossy to help a business keep the price of a commodity or service low. It results in a cheaper product for consumer, higher demand and profit for the producer
Fair Trade
Fair trade agreements are designed to reduce the barriers of trade between two or more countries to help protect small markets and industries and ultimately create an even and fair playing field. Makes food readily available and increases supply
Free Trade
International trade that is left to its natural course without any restrictions such as tariffs. Australia has a few trade agreement with China. Makes food more readily available which increases food consumption.
Ownership Concentration
Refers to the amount of stock owns by individual investors and large block shareholders. In Australia multinational corporations are IGA, Coles, Woolworths and Aldi. This results in a domination of the food system.
Natural Disasters and Potential Loss of Infastructure
A natural event such as a flood or hurricane that that causes great damage or loss of life. Can prevent transportation of food if roads are damaged, causing food to spoil if they aren’t transported to the destination within the certain time frame.
Production of Biofuels
A biofuel is a fuel made from organic materials. Recent increase in the demand of biofuel has meant reduced supply of grain available for food, thus increasing the price making it less available to those on low incomes.
Population Growth
The increase in the number of individuals in a population. Advantageous to farmers as there is the potential for greater profits due to more consumers that can buy food
Land Ownership
The legal regime in which land is own by an individual who is said to “hold” the land. They determine who can use the land, what for and for how long. China owns Aus land thus a large portion of Aus land grows rice.
Food Prices
Are the price at which food is sold in a market. Many factors effect the price of food such as natural disasters, population growth and biofuels. Increase price=decrease demand / decrease price=increase demand
Demand for Meat and Dairy
In Aus, there is a large demand for meat and dairy products. Grains however are cheaper, more nutritious and for the same amount of land, can produce more. Livestock require more water, grain and fertilises which is unsustained as those resources could be better used to increase production of human food supply
