Research on Agricultural Product Price Risk and Risk Management

Wenxian Weng

Asian Agricultural Research, 2017, vol. 09, issue 07

Abstract: There are a variety of reasons for agricultural product price risk, and drastic volatility in agricultural product price can give a tremendous negative impact on agriculture and even whole society. The paper argues that the agricultural product price risks include (i) price risk caused by decrease in yield and quality of agricultural products due to natural disasters; (ii) price risk caused by actual change of the market supply and demand; (iii) price fluctuation risk caused by the change of the price of the related products; (iv) sharp price volatility risk caused by market speculation; (v) risk caused by periodic property of agricultural products and lack of elasticity of agricultural demand; (vi) risk caused by lack of government management. Agricultural product price risk poses great harm to farmers, small and medium-sized agricultural operators and general consumers. This paper brings forward the specific recommendations for solving agricultural product price risk.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asagre:265349

DOI: 10.22004/ag.econ.265349

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