Economic+Factors+affecting+food+productivity

FIRST MAIN POINT-- DEMAND
DEFINITION:people buy a huge quantity of food at a certain price at a certain time,thats when a high demand for food. High demand encourages food producers to increase their output & productivity so that by selling their crops,more money could be earned.

CASE STUDY-High demand for coffee’s perfect brew
Today,coffee drinking has become a lifestyle and the demands of coffee remains high.According to national geographic,one of the world's opens four new outlets and hire 200 new employees around the world every working day.with such high demand,many countries are attracted to coffees.According to the ID21 research organization,which provides reliable sources about international development,about 106 000 square kilometers of land was used for growing coffee beans in 2006.

The two countries dominate the two main types of coffee. Brazil is the biggest producer of arabica, while Vietnam is the top producer of robusta. Both types of coffee have their fans, but there is no escaping the fact that, for the true coffee aficionado, arabica is the most highly prized. As with all commodities, supply and demand is key to price. Demand for arabica is much higher than for robusta, and this is reflected in a substantial price premium for arabica. Most instant coffee – the granular kind that dissolves in hot water – tends to be largely processed using robusta coffee beans, while the ground version used in a cafetiere or percolator tends to be arabica. But even within the arabica/robusta divide there is a vast range of sub-types and distinctly different qualities.

At the other end of the production chain are the roasters, the coffee wholesale and retail suppliers who roast the green coffee beans they buy to highly variable specifications, producing their own flavour to customise the green beans according to their own brand identity.

Coffee production remains of vital importance to many of the world’s emerging markets. As well as Vietnam, other big robusta producers are Brazil, Indonesia, India and Uganda. After Brazil, Colombia is the next-biggest arabica producer, with Central American countries also key producers.

Commercial farmers decides what to produce based on demand and price. More demand of a kind of crop will push up the price, hence making it more profitable for the farmer to invest time and resources in increasing food production.

=High demand for coffee made from beans eaten by civets=

One of the world's most exclusive types of coffee comes from the hills and mountains of South East Asia. But this coffee may not be to everyone's taste - it is made from beans which have been eaten and then excreted by small cat-like animals called civets. Bags of beans can fetch up to $800 (£500) per kilogramme in Japan or the US, and coffee shops in New York can sell just one cup for up to $50.

video link: http://www.bbc.co.uk/news/world-asia-pacific-13198560

SECOND MAIN POINT--CAPITAL
DEFINITION:It refers a large amount of capital, which is the sum of money used to start or expand food production,and is needed to spend on crops which can significantly increase productivity. Capital refers to resources such as money, machinery and buildings used by farmers. The availability of more capital will generally result in higher food production. It is also used to purchase seeds,fertilizers and pesticides and sometimes even wages to labor workers.For example,fertilizers are used to increase the amount of nutrients in the soil and enables the plants to grow healthy. Lar ge amount of mon ey is bei ng pum p into resear ch & dev elo pme nt to improve the productivity of food. Some species of crops may be drought resistant

Comparison of commercial fishing(high capital vs low capital)
The world's fisheries today are organized in two quite distinct sectors: artisanal fisheries and industrial fisheries. Most of so called artisanal fisheries are a in fact the traditional local fisheries that have changed very little over past centuries. Consequently, they are usually requiring low technology, are labor-intensive and confined to near-shore or inshore fishing grounds. The industrial fisheries, on the other end, are calling for high technology and are quite capital intensive. The commercial fishing vessels are generally large and well equipped, and can sail widely over the oceans. With regard to vessel numbers and employment, the artisanal sector dominates the world's fisheries. Almost 85% of the world's fishing vessels and 75% of the fishermen are artisanal ones. However, due to its low technology and limited range, the artisanal fleet is only a small fraction of the world's catch of fish. In addition, the traditional fisherman yield is low, his income is generally small and his working conditions poor. The industrial fishing sector is economically much more efficient. Although the industrial fleet only comprises 15% of the world's fishing vessels and approximately 50% of the total tonnage of the world's fishing fleet, it accounts for over 80% of the volume of sea catch in the world.

Advantage:
-Higher demand lead to more new shops or outlets which helps people to find job easier. -High demand encourages more production. -More capital is able to buy better equipments and increase productivity. -the capital can be used for research & development to discover more ways of better productivity.

Disadvantage:
-If the demand is too high,the production may not meet the need of demand. -In order to meet increasing demand,more lands will be use for farming instead of other purposes. -using too much capital on better technologies might be a waste of money. -Buying too much chemical fertilizers may not be good for the crops.