Learning from actual Price behavior(Part1)

As we have gone through , vegetable prices are decided mainly by Demand-Supply which either go up or drop “sharply” and “immediately”. We will have detail look at actual market prices, item by item with studying how Japanese vegetable markets are.

Spinach : price in season

As we researched, there is not significant correlation between vegetable price and nutrient value.We have made a 5year historial chart for spinach price and trade volume in Metroploitan Central Wholesale Market.
It is said vegetables in season are highly nutrious with original taste throughout the year, spinach season is from November to January which is circled in red.You will understand that the price fluctuates to the quantity and that spinach is  inexpensive in season.You will also imagine retail stores purchase spinach in August even higher price to display.

Reference Data:https://www.seisen.maff.go.jp/seisen/bs04b040md001/BS04B040UC030SC003-Evt001.do

Potato : price in same months but diffrent year

We went through 3 years historical chart for spinach just chronologically, then we have made a chart to focus on same months for three years to compare so that it would be helpful to understand Demand-Supply is main key factor for price and to see how sharply price fluctuates.
You will see Y2015 price jump up(24% up) in Jun then drop in Aug(57% down!!)  , it is due to supply volume change.
You will also notice early Aug 2017 price is quite low(25% down) comparing with the ones in Y2015,2016 because of supply increase(20% up).
It basically takes three months to harvest potatos, it is difficult to predict either it would be at good harvest or bad.
They are also working at their best effort, the quality of potato itself is not so different in the same period in each year.
Don’t you think the price behavior is too sensitive?
This is due to low-elastic demand and supply for price we have explained in Price Mechanism for Vegetables in Japan.

Referance Data:https://www.seisen.maff.go.jp/seisen/bs04b040md001/BS04B040UC030SC003-Evt001.do

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