The Demand And Supply Sides Of The Australian Fmcg Market

Question: Discuss about The Demand And Supply Sides Of The Australian Fmcg Market. Answer: Introduction: The business enterprises are putting more focus on the supply chain investment to manage the equilibrium between the demand the supply of a product. The market competitiveness is also increasing. At the same time, the customer expectations are also improving. Thus, supply chain management becomes a strategic tool for the companies to maintain customer satisfaction ratio, which in turn, increases the demand index of the clients in the global marketplace. It has been identified that the demand function indicates a clear correspondence between the quantity placed by the customers, price and associated factors that influence the final purchase intention. Considering the fact, the study attempts to evaluate the application and supply of rice agriculture and its associated factors affecting the demand and supply side of the fast moving consumer goods (FMCG) market. The effects of several factors such as the change in the price on the demand and supply have been clearly demonstrated in the current study. Based upon the in-depth analysis, a recommendation has been given by the current researcher to improve the current demand and supply scenario of the rice consumptions in the Australian FMCG sector. The thesis statement of the study reflects that the demand and supply measures are correlated with the Australian FMCG market to derive a considerable profit margin. Body: The statistical data regarding the prospects of Australian agriculture states that the food demand will grow in an exponential way within 2050. The total grain production report published in 2013-2014 indicates that due to the growing disposable income, the total food demand is increasing. Eventually, the state wise food production is also increasing. In this context, Chen et al. (2016) indicated that rice is primarily consumed by the Australian inhabitants. Different stock feed and livestock industries use broken rice, rice Pollard and the rice hulls. The past few years data also indicate a recovery in the production volume in the rice products within the span of FY 2205-20016 to FY 2008-2009 (www.sfmca.com.au, 2016). During this time, the irrigation system became weak, and the lack of water decimated the rice industry. However, Dwiyana Mendoza (2006) stated the increase in the demand for rice enforced the marketers to increase the supply of rice in a significant way. Rising demand also generated a steep increase in the production and supply of the rice in Australia. Chen et al. (2013) also stated that a linear relationship of demand with the supply functions could only maintain the application pool of a product in a given industry. However, Sinnasamy et al. (2015) stated that a large group of marketers is failing to meet the equilibrium in the demand and supply ratio. The in-depth analysis indicates that the amount of the rice is in the crises against the demand of the product. The current productivity of the rice nowhere matched with the future demand for the rice in the Australian region (www.sfmca.com.au, 2016). Considering the fact, Sinnasamy et al. (2015) stated that the sudden population growth is one of the primary drivers behind the increased grain demand. The survey report concludes that the overall population will increase approximately 36 million people by 2050. Thus, the rice manufacturers will face a steep pressure to maintain an economically healthy surplus of the rice. Also, Chen et al. (2016) stated that the price factor is also another vital factor affecting the demand for the rice in Australia. The per kilogramme white rice costs for A$29 currently, which has increased from the previous scenario. Therefore, theoretically, the demand for the rice needs to be reduced. On the other hand, the gross domestic product (GDP) of Australia has been increased in a linear way, which depicts that the expenditure ratio of the people is also increasing. Also, the changing consumer taste and preferences are also imposing pressure on the commodity marketers to maintain the demand of the customers. Sarre et al. (2009) also criticised the statement and stated that increasing demand for the rice in enhancing the rice prices in Australia. This scenario goes with the theory of supply and demand, which says that increased demand creates the opportunity for the marketers to raise the commodity price. With the increasing demand of the rice, the supply volume is growing. Therefore, the overall pricing scheme of rice has risen in the Australian FMCG market. On the other hand, the cost of rice production and associated natural conditions also significantly affect the supply ratio of the rice. The turbulent tax rate and the increase in the prices of the raw material to enhance the overall production cost of rice. It directly affects the overall supply-demand ratio. Otsuka (2013) stated that the increase, tax on the excise duty could decrease the amount of rice and the reduced tax could improve the current provision of the rice. The statistical data also show that within FY 1999-2000 to FY 2015-2016, the grain production has met several difficult times, due to the taxation issue and major fluctuation of the related goods as well. The climate change and the fluctuation in the market access are also considered another important reason behind the decrease in the rice production. Eventually, the import ratio of rice increases. However, the technological improvements have enabled the marketers to enhance the production of the food products. Conclusion: The Australian rice sector could experience an increased demand of exporting in Asia. The stable investment climate and the geographical proximity to the Asian markets are the key opportunities in the FMCG sector. The rice production will not only serve the Australian population, but also the improved production facility could bring greater opportunity for supplying premium rice to the global regions as well. Thus, the supply and the demand ratio of the Australian rice market will meet a feasible positioning. However, the distribution issue, resource scarcity, diminishing labour pools could significantly affect the overall supply and demand curve of the rice products in within the commodity market segment. Addressing these issues could help the Australia rice manufacturers improving the flow of supply against the placed demand of the global consumers. Reference Chen, C.-L., Chen, A.-L., Wei, W.-X., Peng, Z., Yin, C.-M., Xie, X.-L. (2013). Response of rice-rice ecosystem productivity and yield stability to long-term fertilization. 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