Recently, China has ushered in an unprecedented wave of price cuts, and pork is nearly 4 percent. Consumers are naturally excited about it because they can buy more food for less. However, there are some potential crises hidden behind this, and we can't just look at the superficial ones. The reason for the decline is that there is a surplus of goods, and the number of goods on the market exceeds the demand. Although from the consumer's point of view, they seem to have picked up a treasure because they can buy a better product with a lower **. But the situation may not be rosy in the long run. Agricultural products**Persistent** may be raisedEconomyproblems, such as deflation.
When **constantly**, it is difficult for a business to make a profit,EntrepreneursThey have no choice but to lower wages or lay off employees. More and more people can't afford to buy goods, and businesses are getting worse and worse, eventually falling into a vicious circle. According to statistics, in October last yearcpiThis is down 02%, and food** fell by 4%. If this trend continues, it will have a negative impact on our lives.
This phenomenon is not limited to China. In the 90s of the last century, prices in Japan fell all the waycpiHovering below 1% for a long period of time has led to severe deflation. Businesses are unable to make a profit, and in order to save money, they have to reduce workers' wages or lay off employees. So one of the questions that people are perplexing about is, why do prices continue to fall while our incomes don't rise accordingly?In this deflationary situation, businesses cannot sell good productsEconomydecline, and even more severe challenges.
When we are faced with the problem of prices, especially if it persists, it is actually a sign that it may become more difficult to earn money in the future. This negative trend may gradually pass on to everyone through the financial chain. So, thoughAgricultural products**Dramatically** has brought us some convenience, but at the same time the market has been volatile andEconomyA harbinger of crisis. When you see the goods, especially continuously, it becomes more difficult to realize that it becomes more difficult to make money. I hope you're all hereEconomyBe able to respond cautiously in the midst of storms and prepare for a better future.
1. Excessive
The main reason behind the price reduction tide is that the amount of agricultural and sideline products is too large, and the quantity exceeds the market demand. In recent years, our countryAgricultureThe production capacity is constantly increasingAgricultural products** Significant increase in volume. And withEconomyThe development of people's consumption upgrading has also led to a demand for high quality and high qualityAgricultural productsThe demand increases. But at present, there is a surplus of **constant**.
2. The cost of breeding has decreased
AgricultureThe reduction of breeding costs is also an important factor in the price reduction wave. With the advancement of technology and the improvement of efficiency,AquacultureThe production efficiency is greatly improved, which reduces the cost of farming. This makesAgricultural productsDecline is possible.
3. Global market impact
GlobalEconomyThe fluctuation of the market and the supply and demand relationship of the agricultural and sideline products market also had a certain impact on the price reduction. For example, international agricultural and sideline products *** will also lead to our countryAgricultural products**Decline.
1. FarmersDeclining income.
Agricultural products**Drop means:FarmersThere will be a corresponding decrease in revenue. FarmersIt is the main beneficiary of the wave of price cuts, but it is also one of its main victims. Agricultural productsMakeFarmersofProfitsThe space is shrinking, andAgricultural productsRightFarmers's cash flow has taken a hit.
2. AgricultureDevelopmental limitations.
Long-termAgricultural productswill affectAgriculturedevelopment. Agricultural productsToo low will cause:FarmersUnwilling to continue engagementAgricultureproduction, which will affectAgricultural products** andAgriculturedevelopment. At the same time,Agricultural productsIt will also decreaseFarmerswillingness to invest, decreasedAgriculturetechnical level and competitiveness.
3. Employment pressure increases
The wave of price reductions may lead to someAgricultural productsProcessing enterprises have difficulties in operating and even shut down, resulting in a decrease in employment opportunities and increased employment pressure. ForFarmers, the wave of price cuts may mean the loss of original jobs and stable income.
4. Increased consumer welfare
In the short term, the wave of price reductions has increased the purchasing power of consumers and they can buy more at a lower priceAgricultural products。This is good news for a portion of low-income groups and can lower their cost of living.
5. EconomyStructural adjustment.
The wave of price reductions will also have an impact on our countryEconomyStructural adjustments. sectionAgricultural productsIt may have an impact on the relevant industrial chain, and this may also force some enterprises to accelerate their own structural adjustment, transformation and upgrading.
Although the wave of price reductions has brought some consumer benefits in the short term, we cannot only see the immediate benefits and ignore the long-term benefitsEconomyEffect. The tide of price reductions is rightFarmersincome andAgricultureDevelopment will have a certain negative impact and even put some pressure on the job market. In addition, the wave of price reductions is likely to intensifyEconomyThe speed and intensity of structural adjustment. For consumers, we should be rational about the convenience brought by the price reduction tide, and cannot blindly pursue low prices and ignore the quality and safety of products. At the same time, we also have to pay attentionFarmersto support their development and efforts.