Bad weather, expensive fertilisers cause vegetable price hike By Nor Ain Mohamed Radhi - November 25, 2021 The New Straits Times KUALA LUMPUR: Poor weather, reduced production, expensive inputs and higher costs of imported vegetables were among the reasons behind the skyrocketing price of greens in the country. Cameron Highlands Vegetable Growers Association secretary Chay Ee Mong said the rainy season has caused low productivity and production of vegetables. "Poor weather conditions have affected the growth of vegetables in Cameron Highlands, causing lower production volumes and recently, we even had landslides. "Also, within these two years, we have been facing a shortage of labour, which has not allowed us to go full swing with our production," he said, adding that expensive inputs of fertilisers, pesticides and grains have also contributed to the increase in vegetable prices. He said vegetables such as cauliflower, broccoli and chillies were imported, therefore they were pricey. "Imported ones of course will be expensive, due to the freight charges and shipping costs that have also increased. Hence, consumers have to bear the cost too. "Previously, it was easy and cheap to import these vegetables, but look at the scenario now." Chay added vegetable importers were also facing problems, as greens were perishable and they would have to bear the loss, should there be any delay in shipment. Recently, Consumers Association of Penang (CAP) president Mohideen Abdul Kader said checks showed that the prices of some vegetables had increased by up to 200 per cent in the past two weeks. Prices of sawi pendek (choy sum) have increased from RM3 per kg to RM9 per kg, a hike of 200 per cent, broccoli from RM8 per kg to RM20 per kg, which is an increase of 150 per cent and cauliflower from RM7 per kg to RM16 per kg, a rise of 100 per cent. Other vegetables included beans (kacang buncis) from RM8 per kg to RM15 per kg (88 per cent increase), sawi from RM5 per kg to RM8 per kg (60 per cent increase), cabbage from RM4 per kg to RM6 per kg (50 per cent increase), red chillies from RM13 per kg to RM19 per kg (46 per cent increase) and green chillies from RM10 per kg to RM14 per kg (40 per cent increase). Meanwhile, Chay said it was vital for the government to have a good policy to increase local products, instead of depending on imports. He said at present, Malaysia imported about 70 per cent of its vegetables. "They always said that it is cheaper to import. However, the situation has changed. Less supply worldwide, price hikes and expensive logistics among others, have affected the import of vegetables. "This is what we get when we don't focus on self- sufficiency," he said, adding that last year Malaysia imported RM5.4 billion worth of vegetables. On the high prices, Chay said; "We (farmers) do not determine the price, it's more on supply and demand. "Furthermore, when vegetable prices are high many think that the farmers are making a lot. "But when the prices fall below the cost price, who will bother about our situation? We only have ourselves to depend on." i. "Imported ones of course will be expensive, due to the freight charges and shipping costs that have also increased”. Explain this statement using a relevant graph. ii. Let’s say that the vegetable farmers mentioned in the article above are operating in a monopolistically competitive industry. Assume that all the farmers in the industry are facing the same cost structure. The graph below represents an equilibrium for a representative farmer in the industry. THE GRAPH IS LOCATED HERE .. Based on the graph above, identify the product price, equilibrium output, and amount of profit gained by the vegetable farmers. Explain 3 (three) factors mentioned in the article that have caused local vegetable prices to increase sharply. Explain the impact of the costs increase on the price, equilibrium output and level of profit of the farmers. Use the above graph to explain.
A. Answer the following questions based on the article below:
Bad weather, expensive fertilisers cause vegetable price hike
By Nor Ain Mohamed Radhi - November 25, 2021
The New Straits Times
KUALA LUMPUR: Poor weather, reduced production, expensive inputs and higher costs of imported vegetables were among the reasons behind the skyrocketing price of greens in the country. Cameron Highlands Vegetable Growers Association secretary Chay Ee Mong said the rainy season has caused low productivity and production of vegetables. "Poor weather conditions have affected the growth of vegetables in Cameron Highlands, causing lower production volumes and recently, we even had landslides.
"Also, within these two years, we have been facing a shortage of labour, which has not allowed us to go full swing with our production," he said, adding that expensive inputs of fertilisers, pesticides and grains have also contributed to the increase in vegetable prices. He said vegetables such as cauliflower, broccoli and chillies were imported, therefore they were pricey. "Imported ones of course will be expensive, due to the freight charges and shipping costs that have also increased. Hence, consumers have to bear the cost too. "Previously, it was easy and cheap to import these vegetables, but look at the scenario now."
Chay added vegetable importers were also facing problems, as greens were perishable and they would have to bear the loss, should there be any delay in shipment. Recently, Consumers Association of Penang (CAP) president Mohideen Abdul Kader said checks showed that the prices of some vegetables had increased by up to 200 per cent in the past two weeks. Prices of sawi pendek (choy sum) have increased from RM3 per kg to RM9 per kg, a hike of 200 per cent, broccoli from RM8 per kg to RM20 per kg, which is an increase of 150 per cent and cauliflower from RM7 per kg to RM16 per kg, a rise of 100 per cent. Other vegetables included beans (kacang buncis) from RM8 per kg to RM15 per kg (88 per cent increase), sawi from RM5 per kg to RM8 per kg (60 per cent increase), cabbage from RM4 per kg to RM6 per kg (50 per cent increase), red chillies from RM13 per kg to RM19 per kg (46 per cent increase) and green chillies from RM10 per kg to RM14 per kg (40 per cent increase).
Meanwhile, Chay said it was vital for the government to have a good policy to increase local products, instead of depending on imports. He said at present, Malaysia imported about 70 per cent of its vegetables. "They always said that it is cheaper to import. However, the situation has changed. Less supply worldwide, price hikes and expensive logistics among others, have affected the import of vegetables. "This is what we get when we don't focus on self- sufficiency," he said, adding that last year Malaysia imported RM5.4 billion worth of vegetables.
On the high prices, Chay said; "We (farmers) do not determine the price, it's more on
i. "Imported ones of course will be expensive, due to the freight charges and shipping costs that have also increased”. Explain this statement using a relevant graph.
ii. Let’s say that the vegetable farmers mentioned in the article above are operating in a
THE GRAPH IS LOCATED HERE ..
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Based on the graph above, identify the product price, equilibrium output, and amount of profit gained by the vegetable farmers.
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Explain 3 (three) factors mentioned in the article that have caused local vegetable prices to increase sharply.
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Explain the impact of the costs increase on the price, equilibrium output and level of profit of the farmers. Use the above graph to explain.
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