AGBU 3000 Final Exam
AGBU 3000 Final Exam
AGBU 3000 Final Exam
i.
The Food and Agriculture organization in partnership with CARICOM, launched a survey from
1st April to 12th April, 2020, with intention of documenting the impacts of COVID-19 on
livelihoods, market and food security of 19 countries in the Caribbean. Among the 19 countries
surveyed, Trinidad and Tobago accounted for 12% of the total responses, while the sample size
may seem too little, the outcomes observed greatly reflects the position of the agri-food sector in
Trinidad and Tobago; the following three examples describe some experiences in the sector:
Rising Food Prices- The agri-food sector of Trinidad and Tobago is driven by imported
foods, our high food import bill is as a result of sociocultural factors which leads
individuals to think that anything foreign is better than what is locally produced.
Approximately 65% of people surveyed, noticed an increase in food prices. Covid-19
disrupted supply and demand chains globally, causing many ports to shut down
operation, placing a strain on trading countries. Rising food prices in Trinidad and
Tobago has two major driving factors; Increase costs from suppliers and Increased
demand from consumers. International suppliers are forced to increase cost of production
as a result of the coronavirus disrupting their operation; as a result of; decreased
workforce, increased cost of raw materials and increased demand. Many companies have
been forced to decrease the size of their workforce, as per instruction to minimize
transmission within the entire workforce population, this puts a strain on production as
less workers mean slowed production time. Just as consumers are faced with increased
costs of products, manufacturers are faced with an increased cost of raw materials for the
same reasons, a disruption in the supply and demand trade, forcing many businesses to
increase cost of production. Increased demand raises the price of products as it works
parallel to a decreased workforce; limited supply and increased demand for goods and
services affects the price of the final product. Some importers are forced to find
alternative suppliers for products, which further drives up the price of the product.
Shortage in supply of goods- At the start of the pandemic, many individuals sought after
panic buying, in fear of suppliers across the country shutting down their operation, as it
was becoming obvious that some businesses experienced shortages in supply, forcing
consumers to alter their buying behaviour. Manufacturers which may have traditionally
supplied us products, are now forced to shut down their operation as a result of the
coronavirus, many employers and employees fear infection, hence, the shutting down of
operation, allowing individuals to isolate themselves in the comfort of their home. The
closure of shipping ports worldwide places a strain on the supply of products, simply
because the port is unable to supply the product to the demanding country as the
operation is shut down. Furthermore, shortage in supply may be due to the panic buying
spree experienced throughout this pandemic, approximately 82% of the individuals
surveyed changed their shopping behaviour, with majority purchasing larger than usual
quantities of items, to create a food stock at their home. Furthermore, individuals also
changed their shopping behaviour by; going to different stores and buying cheaper,
alternative brands. Food supply availability is becoming limited, as a result, there is
increased demands for desired goods. Some businesses have adapted to increased demand
by offering delivery services as well as creating online platforms, to reduce the amount of
people in store.
Increased dependency on locally produced goods- The rise of the coronavirus highlighted
that most countries in the Caribbean region lacked food security, with Trinidad and
Tobago being one of those countries. Consumers have shown increased interest on good
produced locally due to a number of factors; lack of availability of preferred goods,
changes in consumer behaviour and changes in income. Furthermore, many individuals
were driven towards becoming self-sustainable by developing home gardens. Consumers
throughout the region changes their buying habits, shopping at local stores or markets, to
avoid large gatherings, decreasing risk of transmission; home gardening was done to limit
contact with individuals allowing consumers to produce their own products in isolation.
The market for locally produced goods is destined to grow as soon enough we would not
be able to afford our high food import bill, as the country’s foreign exchange earner, oil
and gas, as well as tourism industries, has crashed, but consumers still need to eat. As of
24th April, 2020, Clarence Rambharat, the minister of Agriculture, Land and Fisheries,
states that the ministry would distribute 50,000 seedlings to household, to promote self-
sustainability in citizen’s homes.
ii.
The coronavirus caused little to no harm to the agri-food sector in Canada, while there were
instances of disruption in some markets and products, the effects were temporary and were able
to return back to normal within a few weeks; the agri-food sector in Canada is then said to be
highly resilient, being able to provide a safe and constant supply of food to its consumers, with
little to no disruption. Canada is the fifth largest food exporter worldwide, and in light of
increasing demands globally, the export sector is expected to continuously grow.
In this case, my advice to the farmer on how to plan production for his product is, conduct a
study on the current market situation in Trinidad and Tobago, gathering data on price, demand
and competition that exists on the market currently, as the coronavirus constantly changes the
market in Trinidad. Planning production is obviously tricky, as the farmer’s intention is to
maximize profits and minimize wastage, therefore, in order to effectively plan production of the
product, the farmer must be able to identify trends, as well was, identify a gap that needs to be
filled in the existing market. By identifying price, demand and competition the farmer is able to
gauge the size of production needed on the farm. Furthermore, identifying a gap in the market,
helps the farmer develop products that are higher in quality or lower in cost.
Observing trends in the coronavirus cases can help the farmer identify production opportunities;
the hospitality sector in Trinidad and Tobago has once again closed, placing increased demands
on alternative foods that satisfies consumer needs, though the sector is only temporarily closed,
there is still an increased demand for alternative products as many individuals avoid public
gatherings and have moved to becoming more self-sustainable.
Consumer livelihoods experienced drastic changes since the pandemic emerged, as such,
consumers were forced to alter buying behaviour due to; changing income and changing
lifestyles; as such, consumers who experienced reduced income, favour a cheaper alternative to
goods, if the farmer is able to supply tomatoes at a lower cost than current market value, their
product would thrive in the existing market.
If the farmer is able to develop a partnership with a food supplier in Trinidad and Tobago, they
are able to guarantee a constant market for their tomatoes; the food supplier is able to make
constant demands for a certain amount of products. Lastly, if the farmer conducts a SWOT
analysis, they would be able to identify the greatest means to achieve success.
The coronavirus has affected many markets globally, however, Canada’s agri-food sector has
proven to be resilient, with proper planning, research and management, the farmer would be able
to successfully obtain a plan for tomato production for the next six months.
iii.
Two Major Challenges that may prevent local farmers from benefitting from these initiatives:
1. Inability to satisfy consumer needs- Consumer satisfaction influences consumer buying
behaviour, a consumer purchases product that satisfies their needs. Due to sociocultural
factors, locally produced agri-food products are seen as inferior to imported products, as
such consumers typically gravitate towards purchasing products from major wholesalers
and retailers. Furthermore, local food producers have more overhead costs associated
with production due to numerous factors; lack of land, labour and resources; as such,
consumers are driven away from purchasing local goods that may be higher in price
compared to imported goods.
2. Inability to meet consumer demand- While local agri-food producers may be able to
provide products for a certain market, the drive towards food security, poses great
difficulty on them. While more demand is being driven towards the local agri-food
sector, it may become clear that we simply cannot produce enough food to feed the
nation. The agricultural sector of Trinidad and Tobago has always been put on the back
burner while governments focus on other projects, however, the emergence of the
coronavirus exposed how vulnerable the nation is. While plans to revamp agricultural
production have been developed overtime, implementation of said plans have resulted in
our own short comings. Every person needs to eat in order to survive, therefore,
consumer demand is always constant, the inability to meet such demand due to limited
supply is a challenge many local farmers face.
iv.
Many individuals prefer to stay indoors, to minimize the risk of transmission, many sectors in
Trinidad and Tobago have been altered to comply with new restrictions put in place by the
government, causing many markets to suffer, in this case, farmers are seeking to turn to
alternative methods to create a market for their products that can guarantee profits.
Possible actions farmers can take in order to develop and keep markets for their products:
1. Online platform- Developing an online database that allows farmers to market their
products can promote the flow of goods from farm to consumer. It retains the traditional
market structure, where merchants are able to sell produce at their price and it is
ultimately up to the consumer to choose what price they purchase produce for, though
there is a fair market price existing, in a traditional market scheme prices may differ by
small amounts depending on the merchant. Furthermore, the site can be divided in retail
and wholesale storefronts that allows a fair market between wholesalers and retailers.
2. Produce delivery- Like many major wholesalers and retailers have done, delivery services
have proven to be the new way to shop amidst this pandemic, due to consumers fearing
transmission of the virus in public areas. This service can work alongside the online
merchant store as a means to satisfy customer needs and as a way to generate more
income for the farmer, by charging delivery fees.
COVID-19 has changed the lives of many, it will be a long road ahead before the nation returns
to a pre-pandemic norm; as such, the life of a business must change in order to facilitate sales
during this time. Farmers can adopt new strategies to drive business towards their produce by
adopting a change in traditional actions.
2.
i.
Two Determinants of Demand:
1. Consumer Income- Consumer income deals with the consumption pattern for a
product; typically, increased income leads to increase consumption of a specific
product, making it a normal good, conversely, as income decreases there is typically
less consumption of a preferred product, as the consumer simply cannot afford it.
When appealing to a target market, consumer income is a factor to be considered, as a
premium product, must sell for a premium price, while consumers demand products,
if they simply cannot afford a product due to constraints with income, then supply
would be inferior to the products demanded. Consumer income helps a farm business
assess the type of product to be marketed to consumers.
ii.
1. Food security- Limited supply of food products versus increasing demands for such
food products leaves our nation food insecure, hence, we need to adopt a more
sustainable practice to meet consumer demands. Our current agricultural situation
cannot produce sufficient food to satisfy the entire nation; as mentioned before,
access to international imports have been affected due to certain factors, placing
major risk on human life, as some may not have access to food. The drive towards
food security must be sustainable so as to guarantee every individual access to food,
not only those who have high income but especially to those who live with low
income, as these individuals may experience food insecurity as a result of rising food
prices. As we know, the pandemic has altered the lifestyle of individuals worldwide,
food security has always been important, however, it is distinctly needed in this
current time.
If strategies are not made to achieve food security in Trinidad and Tobago, there
would be extreme risk to human life, as there would be a very limited supply of food
products that only high-income earners would be able to obtain; as there is limited
supply, food prices would be expected to increase exponentially.
2. Reduction in the high food import bill- Agriculture was placed on the back burner of
the country, while other sectors reigned supreme; while the rise of these sectors
offered a higher standard of living for Trinidad and Tobago, less and less attention
was placed on agriculture, the country was thriving with wealth and began importing
more exotic food products, increasing the food import bill. As these other sectors, oil
and gas, began to rise the agricultural sector slowly began to plummet, with people
being warned away from it, mentioning low return and strenuous work. Soon enough
our export capabilities suffered, as we were simply not producing enough export
products to offset our food imports. Realistically, we may not be able to produce
every single product we impot, however, by promoting a more sustainable and
inclusive agricultural sector, it is possible for the nation to produce a percentage of
the products, reducing the overall food import bill.
The rise of the coronavirus shows exactly how important a thriving agricultural sector
is to a nation, food production is key to human survival, rising food prices and issues
with food imports show how food insecure our nation is compared to others. Foreign
exchange earning is now facing a number of challenges due to the emergence of this
virus; therefore, the nation cannot sustainably continue with such a high food import
bill as debt would be imminent. As such a reduction in the food import bill, can help
the nation recover from financial instability.
iii.
Increased agricultural production in Trinidad and Tobago can help combat our rising food import
build and drive our nation towards food security; a sustainable agricultural sector creates
numerous opportunities for the nation:
1. Employment Opportunities- Our food import bill is affected by rising food price;
increasing to meet the demands of consumers, however, the governing body for Trinidad
and Tobago can implement plans and strategies to move towards making the country
more food secure. Thus, creating employment opportunities as increased agricultural
production would require a stable workforce. This initiative can be extremely beneficial
in the current pandemic time, as many individuals remain jobless and, in the market,
searching for alternative work opportunities to stay afloat, hence, a large labour force is
available on standby, the implementation of plans and strategy is holding us back from
achieving food security.
iv.
2. Establishing a medium to carry out actions- Planning is the first step in driving the sector
towards sustainability, however, the second, and maybe the most important step, is the
implementation of such plans. Creating both short term and long-term goals, can help
both parties implement mechanisms to achieve the planned objectives.
3. Adopting good agricultural practices- The drive towards a sustainable agricultural sector,
deals with a combination of pre, intra and post-harvest practices. By promoting good
agricultural practices, such as; soil preparation, sowing, manuring, irrigation, weeding
and proper storage techniques, farmers are made aware of specific technical and
mechanical processes that guarantee the best quality crop, while minimizing any harmful
effect on the environment.