Farmer –

Apple (Malus
pumila)
MBA Evening Batch : 2021-24
Semester : II
Mehul Pandya (22129)
 Factors affecting economic environment-Summary
Sr. Factor of Economic Environment Analysis Conclusion
1 Demand Positive
 Demand of the Apples has been increasing irrespective of prices since it has
lot pf health benefits and other uses.
 From 2019-2020 to 2020-21, domestic consumption in India has increased
by 52000 MT.
 Demand is Inelastic. Irrespective of price, demand never falls.
 It is used to produce Jellies, Juices, health products, baby food, ciders,
butter and many other items.
2 Market Size Positive (Increasing)

Consumption in kt

3 Suppliers Positive & Stable

 Industry ,Taxation rate ,Seeds ,Machine (Positive )
 Technology, Export Related Problem ,Logistics (Stable and Negative as
well ), Storage, Logistics
4 Supplies Positive (Increasing YoY)
 Factors affecting economic environment Summary
Sr. Factor of Economic Environment Analysis Conclusion
5 Income Positive

 Demand and consumption of Apples have increased. In COVID time also,

demand of Apples increased. Income of Apple growers have increased
due to higher price of Apples in the market.

6 Inflation Rate Negative

 Higher inflation increases cost of Apple farming, preservation and

logistics. Higher fuel prices, warehousing charges and other related costs
increase the apple farming cost.

7 Increasing Interest Rates Negative

 It increases cost of Apple farming and thereby cost of production goes up

since there are special machinaries used in the farming, preserving and
harvesting. Due to higher interest rates, cost of machines and also labour
goes up thereby increases the cost of production.

8 Unemployment Level Negative

 Due to climate conditions, Soil conditions, Infrastructure availability for
storage and logistics put apple farming in unpredictable situation and
thereby increases unemployment.

9 Taxes Positive
 Farmer Income is not taxable and same but external factor heavy tax rate
in product that farmer buy from their supplier (Machine ,Bore well ,Soil
Testing etc.)

10 Tariffs Positive
 Sales price of Apples is on increasing side in the market.
Factors affecting economic environment Summary

Sr. Factor of Economic Environment Analysis Conclusion

11 Cost of Labor Negative (Increases YoY along with warehousing, storage and logistics
cost)
12 Population Positive (Demand is more than supply. Due to the same import of Apples
has increased in India)
13 Innovation Positive (Technology for preservation of Apples, Cold storage technology,
Use of Ozone friendly gas in chillers, Solar panels in warehouses, Advanced
logistics system prevents perishing of Apples)
14 International Condition Positive (Demand increases)
15 Capital Market Stable (Land price increase by day and Farming per Acre is decreasing)
16 Economic law Positive since demand is increasing, supply is short, and price is market
governed.
17 Social Culture Environment Stable (Consumption Level is high and demand is more than supply
18 Government Policies Negative: Non-availability of Cold chains, Poor road infrastructure and
lower buying price from Govt. institutions like NAFED.
19 Technological Environment Stable : Solar ,Machinery, Curser ,Logistics, Cold storage
20 Natural Resources Positive: It is used to produce Jellies, Juices, health products, baby food