Supply and demand is an economic model of price determination in a market. By definition, it is a theory that explains the interaction between the supply of a resource and the demand for that resource. To the average person, the concept of supply and demand may generate mental images of frantic economists and stockbrokers huddling over computer screens, nervously analyzing minute-by-minute market fluctuations in treasuries and debt on Wall Street. While that may be a generalized description of what economics really is and of what stockbrokers do, there’s no denying that it is often the mental image that gets associated with large-scale economics. But how about supply and demand that involves small-scale economics – is there a difference in what it looks like? Does the average person apply the same philosophy of large-scale supply and demand to small-scale supply and demand? This is an important question to consider because the answer will determine the way people react to economics at the local and national levels.
Perhaps the conversation regarding supply and demand should not be restricted to just small-scale and large-scale economics, and include a discussion on integrative economics, that is, the supply and demand relationship between small-scale and large-scale economies.
As for the local small-scale farmers devoting their time and energy producing crops for food markets in Oregon’s Willamette Valley, supply and demand is not as simple as the small scale of their operations might suggest. Due to constant fluctuations in annual yield caused by environmental factors, and subsequential shifts in consumer demand and market value, supply and demand has undoubtedly become an issue of great concern since specific events have pushed it toward increasing complexity.
Willamette University scholar Katlyn J. Giombolini’s discusses the complicated nature of this issue in her work entitled, “From Turf to Table: Grass Seed to Edible Grains in the Willamette Valley.” Giombolini notes that “recent declines in grass seed markets and an increased consumer interest in local grains have raised the possibility of a transition from grass seed land to edible grain production for local markets.” (Giombolini, 141). For local farmers in the grass seed business, it’s reasonable to assume that the concept of supply and demand has conjured up mental images that are rather frightening, to say the least.
To address this apprehension, it would be advantageous to consider what else might be increasing the likelihood that such transition could take place. Doing so would likely reveal the shortcomings of the proposed transition from grass seed to edible grain, which could further encourage strong democratic relationships between farmers and planners throughout the process. Out of each of the agreements to be reached by local farmers and decision makers, several might stem from discussions focused on issues related to infrastructure. One driving question is whether there will be sufficient infrastructure (storage, processing, distribution, and market outlets) to ensure that the transition from grass seed to edible grains is a successful one. As it turns out, Giombolini believes this to be a primary consideration for farmers and planners seeking to address associated local food system possibilities and challenges. (Giombolini, 141).
In considering just one of the major issues associated with this transition, it is apparent that there are now two equally important sides of this exchange that must be considered. The first is the projected supply and demand relationship that directly relates to the transition from a grass seed market to an edible grain market. The second is the supply and demand relationship that directly relates to the infrastructure should this transition occur. One cannot consider one of these scenarios without recognizing the other, hence the advantage of interpreting this issue from the perspective of integrative economics.
Large-scale issues like climate change and a recovering economy are affecting small-scale markets, just as small-scale changes, such as the increasing demand for locally grown food is affecting large-scale markets. The socially responsible perspective is to view this things as an integrated entity rather than two distinct forms of action. Doing so may resolve some of the confusion that the average person has when confronted with the reality of the power of consumer choice. While one consumer is small in the scheme of things, collectively they can change large-scale systemic issues. Let large-scale markets be no exception.
Works Cited
Giombolini, K., Chambers, K., Bowersox, J., & Henryd, P. (October 30, 2011). From turf to table: Grass seed to edible grains in the Willamette Valley. Journal of Agriculture, Food Systems, and Community Development, 141-161.