Agricultural product price policy

Japanese: 農産物価格政策 - のうさんぶつかかくせいさく

Agricultural products are subject to large price fluctuations. As we experience daily with Chinese cabbage and radishes, a small increase in supply can cause prices to plummet, while a slight decrease in supply can cause prices to soar. This is because, as is common with necessities of life, the price elasticity of demand is low, but what's even more troublesome is that agricultural production is characterized by unpredictable supply fluctuations. This is because harvests and harvests are determined by natural conditions, particularly weather conditions, and are difficult to control artificially. In addition, when prices fall, farmers tend to try to make up for the drop in unit prices by increasing production, which exacerbates the price decline, and conversely, even when prices are expected to rise, they often do not have the capacity to expand production, causing prices to rise even further.

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

農産物は価格変動が激しい。白菜やダイコンなどで日常経験しているように，少し供給がふえれば価格は暴落し，ちょっと供給が少ないと価格高騰がおきる。生活必需品の常として需要の価格弾力性が小さいからであるが，厄介なことに農業生産は予測しがたい供給変動がおきることを特徴とすらしている。自然条件とくに気象条件に豊凶が左右され，人為的コントロールが困難だからである。加えて，農家は価格が下がったとき単価の下落を量の拡大で補おうという行動をとりがちで，価格下落に拍車をかけ，逆に価格上昇が見込まれるときでも生産を拡大する余力をもっていないことが多く，価格をさらに高騰させる。

出典　株式会社平凡社世界大百科事典第２版について　情報

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