Factors affecting Grass Seed Prices
- Author William King
- Published July 28, 2011
- Word count 426
In past few years grass seed production has been severely hit by the economic down turn throughout the world. Economic crisis like floods, earthquakes, terrorism and other catastrophes have caused turmoil in every kind of business. Agriculture is one of the major victims of these catastrophes that have caused its prices to surge in unexpected manner. Grass seed prices have also become unstable because of ever growing high demand and short troubled supply.
Farmers and grass seed suppliers face great difficulty while harvesting grass seeds as they are running low on seeds because of two reasons. First of all the calamities have made the grass seeds a rarity as hundreds of acres of cultivating area and ripped fields were destroyed, so it becomes a great difficulty to find good quality seeds. The second reason is that the farmers themselves find the ploughing material and grass seeds so expensive even in wholesale that most of them are unable to afford the expenditures while others who cultivate grass seeds, sell on quite higher rates due to their own high costs and expenditures and also as an act of exploitation as the supply becomes quite less.
Another factor affecting prices of grass seed is that farmers are always ‘price takers’, they are always contended with the price given to them or they are totally helpless in front of landlords who buy the lots from them. The middlemen and some grass seed suppliers are the main culprits in the rising prices of grass seeds. They alter the prices according to their ease which affects the whole market. These people are also responsible for creating artificial shortage of grass seeds and store the whole lots in their warehouses and wait for the price surge. When the price hikes, they supply the material in market and earn big money.
Landlords and middlemen intermediaries and suppliers also export the good quality of grass seeds to countries where the currency value higher and earn greater profits but this activity again creates shortage in the home country. Besides all this, the economic turmoil has also affected the prices of grass seeds. Floods, earthquakes, tsunami, political instability, global warming etc are also the main reasons to bring crisis all over the world. Natural catastrophes like floods, earthquakes and global warming have destroyed millions of acres of cultivated land. On the other hand politicians are busy in their leg pulling game and are in depth of corruption. The only obvious outcome from these kinds of activities is the high surge in prices of everything including grass seeds.
William King is the director of Grass Seed Suppliers and Suppliers. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
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