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Role Of Private Labels In Organic Food Market

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Discuss about the Role of Private Labels in Organic Food Market.



According to Albert et al., (2011), the consumption of antibiotics has increased from 8.44 defined daily doses per 1,000 inhabitants per day (DID) in 2008 to 9.95 in 2010. With this rate of increase, the usage is seen to hit higher in the coming years. The antibiotics resistance is one of the major problems, which is able to emerge from this increased consumption (“Scientific report on the effects”, 2009).  Some of the key factors, which lead to this trend, include the increased human development index, increase in urban area population, life expectancy, private health establishment, low literacy level and even the low percentage of population between the age of 5 and 15 years.

The demand and supply of the antibiotics is seen the major economic theories which are able to control use of antibiotics. Like any business, the market will usually supply what the consumers need. On the other hand, as the antibiotics are in the market, the doctors will still recommend for their consumption. This will tend to increase the use of the antibiotics and therefore causing more resistance to the drugs. Moreover, the main theory lies on the increase of population (Albert et al., 2011). The population is able to form the basis of the market which the antibiotics products will depend on. Since the market is available, the consumption of the antibiotics will keep on increasing. As the time goes, the consumption will tend to increase with more margins since the resistance chances are high at any moment. Moreover, the private sector is in the market to produce what the market can consume at a high quantity. Therefore the private sector will manufacture more of the drugs according to the demand from the population (“Scientific report on the effects”, 2009). This at the end will tend to increase the chances of resistance and therefore increasing the resistance. The psychological aspect theory will have on the product. From the analysis, the producers will learn about the psychological nature of the people and the use of the antibiotics. This will promote them to produce more of the drugs for consumption. The psychological nature is usually found where sick people are easily convinced to buy any time of drugs with the promise that that will get better. Even with the increased resistance of the antibiotics the demand will be seen to keep on increasing causing the increase of their use. Therefore, the behavior of the humans will tend to be naive even with knowledge of the increased resistance.

Economic model

The government with the effort to reduce the consumption of the antibiotics can engage on different economic models. These models are able to explain the different levels of consumption of particular commodities which may go against the rules. In addition, the government can also apply counter models to ensure that they are able to meet the different demands of the market. Like in this case, the government needs to apply some models, which will counter the increased consumption of the antibiotic and ensure that the adverse effects will not affect the consumers.

First, the playing with the prices can help to enhance the reduction on the consumption. Through taxation, the government can engage on high taxes, which will tend to increase the cost of the antibiotic under consideration (“Assessing the health status”, 2016.) According to the microeconomic rules, the high prices will tend to reduce the demand of the commodity. Considering the following data of the prices of the antibiotics in the market and the number of consumers who are able to purchase at certain cost, it is clear that as the prices increases, the demand goes down.














The high taxation will tend to make it unreasonable for the consumers to use this product. The increased prices will help the market changes (Candelo, Casalegno & Civera, 2017). In addition, the  increased prices coupled with the less consumption of the antibiotic will change the market trend from the retailers and wholesalers. Since the antibiotics will spend more time on shelves, the retailers and wholesaler will change the sale of the product since it will not be moving anymore. Even with the increased of the market base, it will be noticed that the consumption of the antibiotics is low due to the high prices which are imposed. In addition, this trend will be able to move in that change up to the manufacturer. The manufacturer will be unable to produce the antibiotics since the trend of consumption will have changed (Shegog, 2010). The government will be able to couple the demand and supply and use the price factors to control the consumption. This will help decreasing the consumption according to the laws of demand and supply.


Critical analysis

The bacterial resistance in many cases is able to increase when the high consumption of particular antibiotics is enhanced in the market. Nevertheless, the control of the consumption is usually in the hands of the government. The consumption of the antibiotics is usually able to rely on the effects, which the consumers are able to face (“Assessing the health status”, 2016). The government can also engage on other laws that will help to reduce the consumption of this particular antibiotic. It can engage on looking on other antibiotics in the market and help creating measures which will be able to reduce their prices and therefore increasing their consumption. The use of government avenues to reduce the cost of products such as waving the taxation, which is enhanced on them, can help to promote the reduction of consumption of the antibiotics under consideration. The government van therefore identify the key substitutes of the antibiotics and enhance their low proves (Llorens & Carcel??n, 2016). This trend will ensure that the market will prefer their consumption and making this antibiotic be seen as a costly in nature. Although the government will not have interfered with its price, the market will tend to shift the demand to the substitutes and therefore enhance the control of its consumption. From this point, the government will enhance its control of the consumption of the commodity. Through the increase of the demand of the substitutes, the control of the use of this antibiotic will be achieved in both short term and long term. This can work for the government especially in the free market. The control of the advertising of the antibiotics can also help to resolve the increased consumption (“Abstracts for the 3rd International,” 2007). The legislation can be placed which will be able to reduce the passing of the knowledge about the antibiotic existence to the market base. This will give an upper hand to other commodities on the site to enhance their consumption. The consumption of commodities is able to depend on different factors. The demand creation relates on the type of commodity and the way the market will react to it. The market may demand the use of a commodity while on the other hand the government is trying to control its consumption. Nevertheless, the economic models are in critical position to define these moments and the reasons, which may lead to market defying such regulations. Nevertheless, the government may engage on different avenues to enhance what they need and they have the rule to change market waves with these regulations (Shegog, 2010). The demand and supply rules are the area, which the government can play with in order to achieve its aim. This is where the government can use the psychology of the market and change its use with different regulations. The socioeconomic factors are able to play a key role in the consumption of these antibiotics.


In conclusion, the market is a complex environment and the changes of rules do not guarantee the consumption rates of different commodities. Nevertheless, changes in demand and supply can enhance the changes in the consumption, which the government can effectively apply. Each moment, the economic models can define one factor while the government tries to change the views. Through this, the government will turn to different avenues such as using the legislative arm and the prices to change market demands. The government is able to play with the cost, demand and supply mechanisms to enhance the different rules and regulations to reduce the consumption.



Scientific report on the effects of farming systems on dairy cow welfare and disease. (July 01, 2009). Efsa Journal, 7, 7.)

Assessing the health status of managed honeybee colonies (HEALTHY-B): a toolbox to facilitate harmonised data collection. (October 01, 2016). Efsa Journal, 14, 10.) 

Abstracts for the 3rd International Congress on Stress Responses in Biology and Medicine and the 2nd International Congress of Stress Research, 2007. (June 01, 2007). Cell Stress & Chaperones, 12, 2.)

Albert, A., Serrano, A. J., Soria, E. J., & Jime?nez, N. V. (January 01, 2011). Clinical Decision Support System To Prevent Toxicity In Patients Treated With Digoxin. 

Shegog, R. (January 01, 2010). Application of behavioral theory in computer game design for health behavior change.

Llorens, M., & Carcel??n, S. (January 01, 2016). The Role of Private Labels in the Organic Food Market.

Candelo, E., Casalegno, C., & Civera, C. (January 01, 2017). Enhancing Retailer-Consumers Relationship through Everyday Sustainability.


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