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Showing posts from October, 2022


The business of agriculture is no doubt a profitable one with the ever increasing number of people who have to eat daily. This explains why demand for food items hardly reduces even when there is an increase in price, that is agricultural produce have an inelastic  demand. Although, consumers might seek cheaper food substitutes to replace expensive ones in a bid to cut cost, taste preferences can be difficult to change overnight. However, the current inflation rate of about 19.64 (NBS), has lead to a sharp increase in the cost of farm inputs like feeds, production materials, electricity bill, transportation bill etc resulting in extremely high cost of production. The consumers on the other hand have declining purchasing power as salaries are still fixed and inflation keeps reducing the value of their money. Hence, Agribusiness owners find themselves in a situation where they cannot sell as high as they should due to the perishable nature of their goods and so have to settle for lower p