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Food prices Essay Example

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Have lead to a general decline in the food supply while the worlds’ population recently soared to over seven billion meaning that there is high demand of food supply, which consequently leads to a sharp increase in prices.According to the studies by Cribb (2011), other factors that have contributed to high food prices include global warming that has affected the climatic conditions of certain arable areas making them unfavourable for farming. Secondly, according to Cohen (1979) increase in population has resulted in an increase in demand for housing and therefore, arable lands in most countries are being converted into real estates, which is more lucrative than farming. Thirdly, certain natural calamities such as drought, floods, and wildfire that damage cash crop thereby creating a shortage of food supply in the market.According to Hayes and Miller (2010), the hotel industry primary deals in the business of providing customers with accommodations as well as food and beverage. Therefore, an increase in food prices definitely means an increase in the operating cost and hotels are forced to transfer this increased cost to the customers who in turn pay high bills for accommodation, food, and beverage. Hayes and Miller (2010) stated that it is not a wise business decision to reflect the increased food prices primarily on the food bills since the customer may opt to eat elsewhere and therefore, hotels strategically transfer this increased cost across various services that it provides to the customers. This is to say that with increased food prices the hotel industry is forced to equally increase the prices of its products and services that it offers to their customers.Wittman et al. (2010) stated that because of the fact that the increased food prices also affect not only the hotels but also all the stakeholders that include suppliers, staffs, and even the shareholders there will definitely be an increased demand for the hotels to increase the pay of these stakeholders. It will be necessary to pay higher returns to the stakeholders and higher salaries to the staffs in order to cushion them against the high food prices that are prevalent within the market, which erodes the value of their initial low pay. Equally, suppliers will have to factor in the impact of the high food prices on their business and they will be forced to sell their supplies even if they are non-food related at higher prices in order to also cushion themselves against the

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References

Cribb, J. (2011). The Coming Famine: The Global Food Crisis and What We Can Do to Avoid It. U.S: University of California Press

Cohen, M. (1979). The Food Crisis in Prehistory: Overpopulation and the Origins of Agriculture. U.S: Yale University Press

Hayes, D. and Miller, A. (2010). Revenue Management for the Hospitality Industry. New York, U.S: Wiley Publishers

Magdoff, F. and Tokar, B. (2010).Agriculture and Food in Crisis: Conflict, Resistance, and Renewal. New York: Monthly Review Press

Stiglitz, J. (2003). Globalization and Its Discontents. New York, U.S: W. W. Norton & Company

Wittman, H. Desmarais, A. and Wiebe, N. (2010). Food Sovereignty: Reconnecting Food, Nature and Community. California, U.S: Food First Books

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preview essay on Food prices
  • Pages: 4 (1000 words)
  • Document Type: Essay
  • Subject: Macro & Microeconomics
  • Level: Undergraduate
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