Current Event

In: Business and Management

Submitted By rchojn1
Words 790
Pages 4
Attention Shoppers: Fruit and Vegetable Prices Are Rising

Grocery shoppers may be faced with changes in produce prices. California is a major producer in the nation’s fruit and vegetable market. The state grows 90% of the lettuce consumed, 94% broccoli, 88% strawberries, 97% plums, etc. Being a large producer for the entire nation requires a lot of assistance from Mother Nature. Unfortunately, California has been dealing with a 3 year long drought that will cause an increase in the prices of production of the fruit and veggie market. A drought is a period of dry weather, especially a long one that is injurious to crops.

The market for produce is projected to increase in the upcoming months. A few crops such as lettuce, avocados, and tomatoes could see significant increases. The price of lettuce could go to $2.44 per head, a 62 cent increase. The price for avocados could increase to $1.60 each, a 32 cent raise. And tomatoes could cost up to $2.84 per pound, increasing the price by 45 cents. The following price changes are a brief overview on how the market is going to change.

Consumers aren’t hurting as bad as the farmers. Having a job in agriculture in California is difficult to maintain. California could be faced with up to 800,000 acres of land abandoned due to the long standing drought. The vacant land is accumulating money that is being lost because there are no farmers on that land. Unfortunately, even if farmers can’t grow produce they can’t even raise livestock. The livestock requires an efficient amount of food, water, and vegetative available land. Unemployment is going rise regionally and nationally.

A premade salad package would only go up 13% in comparison to the 62 cent increase on a full head of lettuce. This luxury good will cause a stir in what consumers are willing to pay for all premade products.

Since the market is going to have…...

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