In the News

Locked-in daffodil prices inflict losses on large scale growers

Graham Watson

7th February 2021

Here is a nice bit of revision on business costs. This article highlights the challenges facing a Lincolnshire farmer in producing daffodils.

His problem? The price of daffodils seems to be looked in, at or around £1, but his costs are increasing. The cost of labour is going up, and presumably Brexit will have an effect too.

However, despite rising costs, he hasn't yet invested in the technology that might replace labour.

It's a fascinating example, that would allow consideration of fixed and variable costs, profit margins and the like.

And perhaps there is a popular pub quiz question built into the article?

"The UK is the world's biggest daffodil grower, harvesting an astonishing 90% of the total global production."

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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