The factors that may lead to drop in demand for agricultural commodities
- Decrease in the consumer’s disposable income
- Decrease in the price of the close substitute.
- An increase in the price of the complement.
- Unfavorable change in tastes and preferences of the consumer
- Expected fall in the future price of the commodity
- A decrease in the size of the population.
- Unfavorable season of the commodity
- Unfavorable government policy like increased taxation of consumers.
- Reduction in the advertisement of the commodity
- Withdrawal of credit facilities offered by the government to consumers
- Changes in extreme weather that disrupts supply chain
- Health concerns about the safety of the product
- Changes in trade policy that may restrict export.
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