Current Situation in the US
According to the National Oceanic and Atmospheric Administration, the United States is experiencing its most severe drought in over 50 years. In this article we will explore some of the causes and the subsequent consequences that it has on agriculture.
This drought is caused by the convergence of several factors:
A� La Ni?�a pattern of cool water in the equatorial Pacific, which normally generates in parts of North America wetter climatic conditions, ended earlier this year.
A� During the winter, snow levels were below average, contributing to premature drying of the soil in the spring and early summer.
A� The first six months of the 2012 have been the warmest on record and high temperatures have remained to date.
The drought has developed and expanded more rapidly than those of previous years and has affected a higher percentage of the country (over 50% of the country and almost 80% of the agricultural land).
This drought has impacted Midwestern states and in particular the “Corn Belt” region where corn has been the dominant crop since 1850. Industry experts are anticipating a 20% decline in grain yield for 2012.
The decrease in yield and grain quality has directly affected the increase in prices in recent months where the price per bushel of corn has risen up to 20% and the soybean up to 17%, affecting among other things, the demand for U.S. exports.
The increase in grain prices impacts margins for livestock producers, which have been dealt a blow by the rising cost of feed prices, which has led many to cull their herds before they are fully grown. Rising costs have also impacted ethanol producers (more if you consider that about 40% of corn production in the United States is headed for the production of biofuel).
According to the U.S. Department of Agriculture, for 2013 we can anticipate further price increases beef up 4% to 5%, dairy up 3.5% to 4.5%, poultry and eggs up to 3% to 4%, and pork up 2.5% to 3.5%.
The Wordwide Ripple Different Types Of Manufacturing Strategies Effect
The consequences of the US draught can have an opposite economic impact depending on the region.
While the US has been the first country to experience the impact of its own draught, Russia and Australia, both large grain importers, have been the first to feel the ripple effect at the cash register as poultry and dairy farmers are forced to absorb higher feed costs.
On the other hand, there is an opportunity for countries exporting corn and soybeans in South America, such as Argentina, Brazil and Paraguay, where demand for exports has risen. This increase has positively impacted revenues earmarked for investment in agriculture and the expansion of social protection systems that cushion the effects of rising food prices on consumption of low-income households. Combined with the improvements in grain production from the previous year, some South American countries are benefiting.
Measures to tackle the crisis
Future weather patterns don’t look favorable, …
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Can the United States Compete With China on Manufacturing?
The competition between the United States and China seems to be heating up as the recent economic downfall in many markets has put both countries on an even playing field throughout multiple industries.
Manufacturing was once dominated by the United States from the early forties with manufacturing large quantities of bombs and ammunition for WWII to up until the late 70’s when just about industry started to die down in the United States slowly until this recent economic recession threw everything into a downward spiral that many economists saw coming for a long time.
The United States continues to try to hold onto what they have left of manufacturing but with the large Chinese investments into their own manufacturing and a lower minimum wage plus almost non-existent safety and health standards it make the fight hard. In many aspects the United States can almost blame itself as for almost two decades now Americans for the most part have opted for the cheaper product made in China over the product that usually cost more but was made at home. This has taken a toll over the years to where many companies Electrician Trade School Illinois have been dwindled down so much they cannot compete because if your products are not being made in large bulk then your prices must go up slightly therefore running them completely out of business. If this is not bad enough the stock market in China has been creating a nearly limitless investment machine as referenced in the article “China’s Growth Enterprise Market.” If this trend continues the US will have to make significant changes to even compete for a small market share with China and many other East Asian countries.
The United States does have a unique opportunity for manufacturing in my opinion if they can set up large factories to produce things such as green or clean technology which cannot be outsourced. This market was at one point booming but has recently somewhat faded due to many other Plastic Business Ideas pressing issues. If the Americans can not only create some of this technology but be able to manufacture right in their own country it could be another boom, but at this point they are years behind countries such as Germany, Czech Republic, Japan, and even Denmark in this field.
If there is any chance that United States can get back on their feet manufacturing wise to compete with China it will have to come through brave innovation and a little bit of chance taking in new industries because at this point you cannot compete with someone who is making the products quicker and for less money.…