Economics Internal Assesment

Topics: Supply and demand, Elasticity, Price elasticity of demand Pages: 3 (1137 words) Published: December 10, 2012
“Unavoidable” Global Bacon Shortage
Bacon fans might want to hog as many strips as possible this year because a global pork shortage in 2013 is now being called “unavoidable.” With the number of pigs slaughtered expected to decline by as much as 10 percent in some regions, prices of pork are slated to skyrocket, according to England’s National Pig Association. The pork price increase comes mostly as a result of droughts in agricultural areas of the US this year. As temperatures rose and crops like corn and soy failed in the Midwest, the cost of pig feed spiked. High feed prices meant farmers couldn’t afford to keep large herds, and have had to kill pigs as a result. This has actually meant an increase in the pork supply in the short-term. American pork supply increased last month by 31% to 580.8 million pounds, up from 442.9 million pounds in August of 2011. While there might be plenty of pork to go around for the time being, smaller herd sizes mean that come next year, it could be an entirely different story. To prepare for the shortage, countries have taken several surprising measures. China — a country where pork forms a central element of cuisine — has established a “strategic pork reserve,” stockpiling frozen pork being in refrigerated warehouses throughout the country to minimize price changes. And in the United States, President Obama announced a $170 million meat purchasing plan in August to aid animal farmers struggling with fallout from this year’s drought. The administration announced up to $100 million worth of pork purchases, Bloomberg News reported. The increase in the price of pork mirrored upticks in food prices overall, driven by higher energy costs across the globe.

Introduction to internal assessment
The first theory I will add to this article is the theory of supply and demand, substitute goods, cross elasticity of demand, stakeholder analysis and how this will affect the government’s decision to step in and help...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Economics Internal Assesment
  • [Economics HL] Internal Assessment (IBYR1) Essay
  • Economics Essay
  • economics Essay
  • economics Essay
  • Ib Economics Internal Assessment Essay
  • Essay on Economics
  • Economics Internal Assessment Essay

Become a StudyMode Member

Sign Up - It's Free