Illustrate the implications of agricultural price instability problem for Less Developed Countries?
Implications of agricultural price instability problem for LDCs:
a. Agricultural products are issue to price volatility through uncertain harvests. When supply increases through growth, then price falls by a greater proportion decreasing producer incomes.
b. Cartels have been unproductive in maintaining price by limiting output.
c. Producers obtain a few pence for each pound spent into western coffee shops. Developed countries keep most of the value added.