The paper 'Impacts of Different Factors on the Price of Beef Products" is a great example of business coursework. There have been declines in real agricultural producer prices at an alarming rate. Similar incidents have been observed in the pricing of beef and other agricultural food products (Bopape, 2002). Thus it has been necessary to determine the factors that affect the pricing of agricultural products such as beef products. There are a number of alternative mechanisms of price discovery that affect the price and subsequent demand for beef products and administered (Chutani, Aalami & Badshah, 2011).
These include marketing boards and cooperatives, auctions, government intervention and administered prices. This paper offers empirical evidence of a firm’ s empirical pricing behaviors by providing the ways in which alternative mechanisms of price discovery affect the demand for beef products. Alternative mechanisms of discovering prices The main alternative mechanisms of discovering prices include marketing boards and cooperatives, auctions, administered prices and government intervention. This paper presents the ways in which these mechanisms of discovering prices affect the prices of the beef product and the consequent demand for them. Cooperatives and marketing Boards An example of a factor that can affect the changes in prices of beef products and consequent demand is cooperatives and marketing boards.
This involves a process where stakeholders involved in the transfer of ownership of the goods agree on the price at which the products should be exchanged. When farmers are not satisfied with the price levels, farmers may ask the cooperatives to negotiate prices with buyers (Fotheringham, Brunsdon & Charlton, 2003). For instance, in Australia, beef farmers from cooperative and marketing boards. Farmers who use cooperatives can do so voluntarily and they are allowed to market their products through the cooperatives or other methods that ensure they are satisfied with the price at which the products are purchased (Smith, 2005).
On the other hand, farmers who market their beef products through marketing boards have to market their products through the boards and have to comply with the price at which the products are sold. There are also cooperatives in most countries such as Australia that assemble process and sell products from members and operate under state-level legislation provided they adhere to certain conditions.
Cooperatives can improve producer returns for raw farm products by dealing with buyers who are imperfectly competitive (Smith, 2005). This results in earning of supernormal profits by buyers that can be bargained away by co-operatives. The level of gains is dependent on the level of bargaining by the cooperatives. Auctions Another factor that affects the pricing of beef products is auctioning. This is the process where the highest bidder is allowed to have the product. During the auctioning process, prices of products are determined through either ascending bid, descending bid or a sealed bid (Meen, 2001).
In ascending bid, the price of the product is quoted and the person who offers the highest price gets the product. In descending bid, the highest price is quoted but reduced until the person who has the capability to pay the price is allowed to get the goods. In a sealed bid, a fixed price is quoted and the person willing to buy the product is allowed to possess the product (Minot & Goletti, 2000). Auctioning are less costly methods of determining prices of products and are common for traders who know the goods they are trading in.
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