Domestic Economy
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Causes of Price Instability in Chicken Market Examined

mortezaei
mortezaei

Agricultural production is a time-intensive endeavor and without government intervention, price and output fluctuations are natural in a market economy. 
“Unlike industrial products, whose manufacturing time can be manipulated, agricultural products need to go through a particular period of time before they are reaped,” Ashraf Mortezaei, an advisor to Domestic Trade Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture, said in a write-up published by the Persian-language daily Donya-e-Eqtesad. The article’s translation is as follows:
You can improve agricultural output by using advanced technologies, but you cannot fully control the time involved in the production process. As a result, the supply of agricultural products cannot be flexible in the face of demand fluctuations within a short period of time, say one year. Such fluctuations affect production planning, markets and the welfare of consumers and producers, because of which most governments step in adopt different approaches to resolve market instability...

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