Testing the Hypothesis- Part 1


Opportunity: Climate Change effects US economy: specifically Agriculture with the reduction of crops due to extreme weather (flooding & excessive rainfall)
Who: Farmers, Grocery stores, Everyday customers
What: The cost of food will rise to account for the reduction in crops
Why: There will be a reduction in crops due to extreme weather and in order to keep farms operational they will have to charge more to turn the same profit.
Testing the Who: The farmers and grocery stores have the common need of selling a product for a profit, they have to account for operational expenses and cost of supplies, workers, and distribution.
Testing the What: All farms could be at risk, but the specific farms in danger are those in the Midwest. This will effect both grocery stores in the surrounding area and those who take specific crops in the area such as soy beans.
Testing the Why: Farmers and grocery stores will have similar whys due to the need to turn a profit. If a grocery store is able to find another source of crop for cheaper, they will be willing to switch to a different supplier to reduce cost. Farmers will not be able to sell as much product because less product will be produced which would cause a shortage. Customers might be inclined to shop at discounted grocery stores to save money and also change their eating habits to account for the cost difference (Frozen veggies versus fresh).

Interview 1:
               This interview was conducted with a College Student. She agreed that fresh fruits and vegetables are getting more expensive then when she first started. She is on a budget and chooses to go to grocery stores like Aldi and shop for fresh vegetables that are on sale instead of what she wants to eat.
Interview 2:
               This interview was conducted with a business professional in their mid-30s without children. She agreed that food is getting more expensive but she saw a hike in prices at her favorite restaurants than at grocery stores. The same meal that used to cost $15 is now $20 due to the increase in fresh food prices. She also mentioned that many of her favorite restaurants have added organic and gluten free meals to the restaurant and suggested it was an overall hike in prices.
Interview 3:
               This interview was conducted with a retired baby bomber who is on a budget. His answers were similar to the college student. He expressed that he no longer shops at stores like Publix but look to discounted mom and pop grocery stores and meat and fish markets. He is also willing to drive further away to go to farmers markets and buy in bulk.
Interview 4:
               This interview was conducted with a mother of 2 children in a 2 person working family. She expressed that she had not really noticed a change in most prices but did see the quality of fruits and vegetables change in the past few years. Also the time in season has changed, she gave an example of corn being available throughout the summer and even into the fall months. Now the season for fresh corn was closest to the 4th of July then tapers off.
Interview 5:
               This interview was conducted with a convenience/deli store manager. He expressed the difference in prices for items like eggs, lettuce, and bacon specifically. He added that shortages or recalls has affected his business. Last year when lettuce was recalled, he saw a decline in sales because people chose not to purchase sandwiches without lettuce, he also lost time searching several grocery stores discount and expensive in which he witnessed price gouging.  
Summary of Interviews:
               My interviews were able to give me a sense of how life is affected due to the increase in price of food. Some inconveniences were expected like shopping at discounted stores but I did not expect to see cost differences at restaurants as well. It was also interesting to learn about how this affects a business owner and customer choices.

Comments

  1. Hi Orlantha! Great point, climate change will impact many industries, especially agriculture. With a hotter climate and water levels rising, combined with problems such as flooding, wild fires and a lower yield of crops a significant impact will be made on the U.S. economy. While there are ways to mitigate the problem, climate change is inevitable and we are seeing its effects already on our ecosystem and economies. This could provide an opportunity for environmental groups and individuals to combat these issues.

    ReplyDelete
  2. I agree that a fresh food shortage could be a huge problem in the future! One of the problems I see, is that the population is constantly growing. At the same time, people are trending towards eating healthier and fresher foods. This has dramatically increased demand for fresh produce in the last decade, leading to the major price increases you have picked up on. I agree and think it will be very important for farmers in the future to be able to quickly adapt to the changing climate and consumer demands.

    ReplyDelete

Post a Comment

Popular posts from this blog

Reading Reflection No. 3

Identifying Opportunities in Economic & Regulatory Trends

Reading Reflection No. 1