I believe many people have heard of the saying "Things are rare and valuable", especially in the eyes of business people, it can be said to be a wise saying. That’s right, if you have something scarce in the market, you can sell it at a good price. It shows that the market is in short supply of this resource. But when everyone is producing this scarce item, it will lead to a result, that is, the market is saturated, and not only the products are not easy to sell, but also they cannot be sold at a good price. This probably explains why some agricultural products are low in price and unsaleable.
1. Market information asymmetry leads to oversupply
Yes, this is actually the main reason. At present, many regions do not have a good judgment on the demand for agricultural products. They obtain the sales and prices of agricultural products through some limited channels. This will inevitably lead to people blindly producing some agricultural products with high prices and good sales. This leads to a large amount of surplus in the market. Once the market is saturated, the price will naturally not reach the expected high price, and it is reasonable to expect slow sales. Market information asymmetry is a very important reason;
2. Small production and large markets cannot effectively connect
Yes, farmers still have a lot of blindness in producing agricultural products. In terms of overall data, agricultural product information will be released based on the distribution of resources. But for farmers, they judge what to plant more based on their own planting experience. This will inevitably lead to fluctuations in agricultural product prices over a period of time. Very large fluctuations are inevitable.
3. The overall market is sluggish, and the impact on the import and export markets
As an external factor, exported agricultural products actually have a relatively large impact on agriculture. When the domestic market is in a In a saturated state, if the external market can be opened through export, it is also a very effective means and way to increase farmers' income. However, when the foreign market is in recession, many products can only be digested domestically. This will inevitably lead to the situation that some agricultural products are unsalable and no one buys them at low prices.
So, how to solve information asymmetry, reasonably control the output of agricultural products and open the external market are very critical factors. Be sure not to blindly follow the trend of planting. "Low grain prices hurt farmers" is not a good phenomenon. After all, our country is still a large agricultural country, and agriculture is very important to us.