What are the effects of government policies and regulations on food prices?


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Rebecca Hunt Profile
Rebecca Hunt answered
There are many effects of government policies and regulations on food prices since any changes in the government system can greatly affect the economy. In such cases, the following effects are expected:

  • Increase in prices

The slightest change in government policies and regulations can cause food prices o shoot up. This is especially true in the case of negative changes wherein the food industry is greatly affected.

  • Low production

As prices rise, there are few consumers who'll buy the products. In today's world wherein everything is expensive, many individuals are after ways of saving money and this includes buying food products which are not so expensive. What will happen is those companies who're selling food products that cause more than other brands out there will have lower production. If this problem continues to persist it won't be long before they will go bankrupt.

  • High cost of raw materials

Raw materials are the stuffs or ingredients used by food manufacturers. Once there are changes in food prices, there's a big possibility for the raw materials o also increase in price.

Perhaps you're wondering about the things you can possibly do when food prices continue to rise. The answer is to find means on how you can save more and spend less on food. Here are some ideas on how to go about it:

  • Have your own garden

Having your own garden at home where you can plant your own vegetables and fruits can help you save a lot of money. Instead of buying tomatoes or herbs from the market, you can have yours free of charge by growing them in your backyard. You can even earn extra income by selling your produce to your friends and neighbors.

  • Avoid processed foods

Processed foods prices are sure to rise when changes are made by the government. Instead of filling your cupboards and refrigerator with processed food items, better go for natural food products. Vegetables and fruits in their natural forms are healthier and cheaper too.

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