Lower oil prices – you can hardly move without running into news of new lows, which should be good news for us all, right? They should reduce the cost of producing goods and delivering services, in addition to offering relief at the pump. But while the latter may hold true, the picture for goods and services is less clear. Yes, production costs will come down, although it turns out that the way savings are shared along supply chains and reach consumers is complex. In short, don’t expect big savings to hit your wallet soon.

 

The global food and agriculture industry is faced with a considerable conundrum. The current economic malaise has created an operating environment characterised by sluggish growth, soft demand and ample supply. Seemingly, consumers are the winners, as they reap the benefits of lower prices. Meanwhile, the thumbscrews have been put on retailers, producers and farmers: margins are being squeezed and confidence in businesses is ebbing away.

 

Clik here to read the full article on The Guardian.