Brazilian Government Intervention: Acai Berry

997 Words2 Pages
bulb-icon

Recommended: Effects of globalisation on brazil

The Brazilian acai berry has been a food staple for low income families for years and a cultural symbol for generations. This berry is vital in Brazil, where it is farmed and, until recently had a relatively small market. However, after an Oprah interview the demand for acai has become an international affair. The rising demand has created a free market; however the once inexpensive food staple has become too expensive for the low income families. This report will analyse the current markets advantages and disadvantages, followed by two possible government intervention models. The examined interventions will be export tariff and price ceiling. The acai berry is a unique fruit that mostly grows in the Amazon; this limited product is wanted all over the world. The current acai berry industry is popular but has caused price problems in the domestic market. The popularity of the acai berries caused the demand to increase drastically causing a shift in the market equilibrium. This in turn has caused the price to increase as new consumers are buying the berry seen in figure 1. As it becomes a successful market in Brazil, the supply is increasing as new companies join the market. The shifts have caused the market equilibrium of both the price and quantity to increase; between 2000 and 2009 the price increased up to 6000% (task sheet figure). The market has grown drastically, the supply increasing from 104 874 tonne in 2005 to 115 947 tonne in 2009 (IBGE, 2008, 2010). This market is efficient and is generating a gross net income without any intervention from the Government. However as the acai berry is exported, the local consumers have to compete with higher prices. As the berry is necessary in the domestic market, the demand curve is... ... middle of paper ... ...138-151. doi: 10.1016/j.jdeveco Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf Rifin, A. (2010). The Effect of Export Tax on Indonesia’s Crude Palm Oil (CPO) Export Competitiveness. ASEAN Economic Bulletin, 27(2), 173–84. Stocking, A. (2011). Unintended Consequences of Price Controls: An Application to Allowance Markets. Journal of Environmental Economics and Management, 63, 120-136. doi: 10.1016/j.jeem. Tuncer, B. and P. Schroeder. 2007. Chapter 8 Sambazon - marketing the acai berry: sustaintable agro-forestry in the Brazilian Amazon. Paper read at SCP casis in the field of Food, Mobilitiy and Housing, at Paris, France.

Show More
Related

  • Commodity Chain of the Organic Avocado

    1968 Words  | 4 Pages

    Rendón, Dr. Oscar Hugo Pedraza. “Quality of the Avocado Exporting Companies to the United States of America,” World Avocado Congress. Abstracts A-48 V. 2003.

    Read More

  • The Batek of Malaysia

    1536 Words  | 4 Pages

    Rukayah Aman. 1998. Rare and wild fruit of Peninsular Malaysia and their potential uses.InM.N.B. Nair, Mohd Harmami Sahri & Zaidon Ashaari, ed. Sustainable management of non-wood forest products. 14-17 October 1997. Serdang Putra Malaysia Press. Retrevied from http://www.fao.org/DOCREP/005/AB598E/AB598E18htm#3743

    Read More

  • The Baseline Scenario: An Analysis Of The Baseline Scenario

    777 Words  | 2 Pages

    For Piura, price changes in cowpea, maize, sheep and goat meat were considered. In Campo Verde, the analysis focused on production of cassava, rice, maize, plantain, palm oil, cacao and cattle meat. These scenarios were employed in order to see what happens if the price increased or decreased. For the analysis, five levels of the factor (price change) were considered 0.5, 0.7, 1, 1.3 and 1.5.

    Read More

  • Jamba Juice Case Study

    1200 Words  | 3 Pages

    So as Jamba Juice transformed so did its prices. Now one thing to keep in mind Jamba Juice specializes in smoothies and juices, and there are no other big firms that supply smoothies. So up until 2012, a small Jamba Juice smoothie costed $3.19, but when the company went “eco-friendly” from Styrofoam to Double Walled Paper cups prices rose .60 cents and stayed dormant at $3.79 for a good 3 years (Alexander, 2014). Although there is a change to the input in supply, the demand stays the same and eventually falls back to equilibrium. Then in prices rose again in July 2015 from $3.79 to $3.99 for a small Jamba Juice smoothie to compensate for the minimum wage increase that took place. Now you think, “Oh no big deal right?” Wrong. Consumers noticed, they noticed even more when prices rose again 3 months later in October that same year to $4.79 for a small smoothie. So in the span of 6 months Jamba Juice had raised their price $1.00 (Jamba Juice Company, n.d.). Although they noticed it did not really change the market for Jamba

    Read More

  • Quinoa Has Lead to a Major Economic Evolution in Peru

    1028 Words  | 3 Pages

    Quinoa’s importance has evolved tremendously since its first appearance during the early Incan Empire. Quinoa has boosted the Peruvian Economy extraordinarily and is only continuing that streak. The Ancient Incan Empire was one of the first to discover Quinoa. In Ancient times, the quinoa production was quite low compared to what it is today, because they kept it within their empire for the most part. Quinoa back then was not exported to a variety of civilizations, whereas it is in modern times Quinoa is a product from the Andes Mountains that is a gluten free grain (Cooking with Quinoa). In modern times it has been a major economic boost for Peru, because they have exported so much of it that the income rate of cash has gone up significantly, and changed Peru’s economy drastically. Which is a major food product in Peru, and has boosted their economy, around $23 million in one year (Quinoa Selection). This staple crop has been a major impact on the Andean economy, especially Peruvian economy.. While Quinoa has been grown in Peru since ancient times, in the modern world, it has become more economically significant to the Peruvian economy.

    Read More

  • The Farmer Market: The Rebirth Of The Farmers Market

    870 Words  | 2 Pages

    Farmer markets have always been around and a strong reason to believe that they will still be around long after our time. There are several reasons why this age old tradition still exitst today and revolves around a very common question, “What does a buyer find important when they are about to buy food to be consumed, or how the produce is grown/manufactured, processed, marketed, and distributed. Supporting farmer markets and ensuring fair trade among the dealer and the seller can help promote healthier lives while building stronger communities. There are several reasons to support a community’s farmer market event because buying true locally grown food can allows the buyer to have options to food that is picked fresh and tastes better than what is sold in the supermarkets. Another benefit to farmers markets is that the food is sustainable, flavorful, supports local farms, and also in some areas, part of the proceeds goes to the unfortunate within that community. With the addition of the food generally being more flavorful, locally grown food is adapted to the climate in which it was grown, and can remain fresh longer than that of an imported produce grown in a different climate. Final...

    Read More

  • Vegan Case Study

    1102 Words  | 3 Pages

    One of the first and most essential assumptions is that there is an exhibited requirement for the vegetables and fruits in an already existing market. In addition, the other companies that serve in the industry conduct business successfully and therefore the assumption on the existence of need is valid. However, the strategy that has been laid down has barely been attempted yet and therefore there is a need or craving for the advantages the new outlet will offer, which incorporates offering services differently from how different organizations address this customer need. However, the whole idea revolves around satisfying the needs of the clients.

    Read More

  • Summary: The Canadian Economic Environment

    345 Words  | 1 Pages

    We are implementing our project to make supply and demand in an equilibrium price. As we are providing healthy, nutritious and tasty food, we expect a huge demand in our product that will increase the supply in return and would generate success.

    Read More

  • Brazil

    1159 Words  | 3 Pages

    The agricultural sector in Brazil has always been important for the economic growth of the country, and the exploration of the resources started as early as 16th century. Brazilian economy was almost solely based on the agricultural products and its export abroad until 1930s. This trend continued all the way through 1990s but two main products of 1990s , soybean and iron ore , represented 10 % of the total exports. 2 Surprisingly, Brazil was receiving food aid from other countries up until 1960s, and even after the country was a large food importer. After the 1980s the traditional agriculture transformed and became a modern, competitive agriculture based on science and research. 3 This was a result of the growing population with higher income ...

    Read More

  • Can Banana Value Chain Help Eliminate Hunger in Uganda and Tanzania?

    2519 Words  | 6 Pages

    To undertake this study we extensively reviewed published data and grey literature from national programs across the EAC and international sources to establish the best available information on supply and demand for bananas. But in view of the limited and unreliable nature of available data we undertook an extensive structured survey across the region involving producers, food vendors, traders (retailers, wholesalers), exporters/importers, consumers, institutional buyers, and key informants on banana productivity in order to better inform this study; together with an Experts’ workshop with representation from across the banana value chain.

    Read More

  • Essay About Coffee In Brazil

    509 Words  | 2 Pages

    Brazil is an entrepreneurial country. Brazil is the largest coffee producer in the world! The country has gained its position in the last 150 years of production and maintenance. The crop first arrived in Brazil during the 18th century and the country had become the supreme producer by the 1840’s. Coffee remains as an important export, although its vitality has reduced in the last 50 years. Brazil is the world’s biggest coffee grower and exporter and the size of its annual harvest can have a strong effect on world prices. Brazil itself is the second largest consumer of coffee, next is Germany, on the authority of the International Coffee Organization in London. Brazil increased its coffee production to an amazing 46 million bags in 2008, easily beating its

    Read More

  • Ribena

    1886 Words  | 4 Pages

    The paper, through the concept of Occam’s razor, shall limit the discussion and analysis to New Zealand, GSK, the Fruit Juice Industry and the product Ribena Blackcurrant RTD for the purpose of keeping the paper’s justifications and conclusions in their clearest, necessary, and simplest form.

    Read More

  • Jamba Juice Swot Analysis Essay

    772 Words  | 2 Pages

    The highly fragmented produce industry, which includes national, regional, and local firms greatly reduce each other’s negotiating powers. The low switching costs and lack of quality differentiation between produce vendors make it easy for smoothie companies to switch suppliers.

    Read More

  • Critical Analysis of SPCA Case

    1718 Words  | 4 Pages

    SPC Ardmona (SPCA) is one of Australia’s time-honored food companies, dedicated to supplying packaged fruit and vegetables. The Victoria state government recently made a decision of assisting struggling SPCA with $22 million to bail it out of the dilemma. It has been controversy over the rationality of this decision since the date on which the decision was released. This report critically evaluates the SPCA’s bail out case by using triple bottom line model, and delivers an opinion that SPCA was worthy of the investment from government. A detailed case study is summarized in subsequent section, followed by evaluation from perspectives of economic, social and environmental, respectively. The analysis is emphasized on economic aspects by adopting Porter’s Five Forces Model to discuss that the bail out investment is economically rewarding. The final conclusion is also given in the end of the report.

    Read More

  • Importance Of Agriculture Essay

    1207 Words  | 3 Pages

    Our country has favorable conditions for the development of industrial crops and fruit trees: The climate is humid tropical monsoon with high heat, high humidity. There are many types of soil suitable industrial crops: feralit land in the mountains, alluvial soils of the plains. The labor abundant experience. Processing industry is growing; large market demand. Policies to encourage the development of the state. The development of industrial crops and fruit trees brought many great significance: Supply of raw materials for the processing industry, providing exports. To contribute to job creation, redistribution of labor on a national scale. Promote economic and social development in disadvantaged areas. Speaking of the achievements of agriculture, we will talk to the achievement of food production in our country recently: Rice planted area increased: 5.6 million hectares (1980) to 7.3 million hectares (2005). The crop structure has changed. Productivity increased at 4.9 tonnes / ha / year. Food production in paddy increased: 14.4 million tonnes (1980) to 39.5 million tons, including 36 million tons of rice (2005). Average food at over 470 kg / person / year. Vietnam is one of the leading rice exporter in the world. Acreage and crop production also increased rapidly. The Mekong Delta is the largest food producing countries, accounting

    Read More

More about Brazilian Government Intervention: Acai Berry

Open Document