Using extract 1 compare the world wholesale price of butter in 2006 and 2007 in the world and in the EU. [3]

As demonstrated in extract 1. both the EU and the world wholesale price of butter remained stable in 2006, the former did not rise above 2.6 Euro per kilogram and former did not rise above $2,500 per tonne.

However in 2007 the EU and wholesale price of butter started to increase in February. The world wholesale price of butter started to increase in January. The increase in the world wholesale of butter was much more stable, while the prices of the EU would rise slowly from February to end of May, form 2.4 Euro per tonne to 2.8 Euro per tonne.

Using figure 1.2, in extract 1, compare the EU wholesale price of butter in 2006 and 2007.

In 2006 the EU wholesale price of butter did not change, significantly. It s lowest point was in August when it was only 2.4 Euro per kg. The price did not came out of the boundry of 2.4 to 2.6 Euro per kilogram.
In 2007 the fluctuations were much bigger, in February the price per kg. fell at its lowest point, then it started to increase. In from March till May it increased in a moderate pace – from to 2.5 to 2.8 Euro per kilogram. It then started to rise much more sharply and almost reached 4.2 Euro per kg in October. It then fell quickly, to bit above 3.4 Euro in December.

Using fig. 1.3 and fig. 1.4 compare the average price of fertiliser and average price of feed wheat in the UK between October and 2006 and October 2007.

The price of feed wheat in the UK from October to January remained stable, fell in February and started to increase in March. In July there was rapid increase in the pace of growth of price, and the price increase by about 70 Pounds per tonne from April till October 2007

The average price of fertilisers in the UK was stable from October 2006 to March 2007. In March and April there was a sharp increase in the price of fertilisers, by almost 10 pounds per tonne. Then there the price of fertilisers remained stable on the level of 155 Pounds per tonne since April up till Agust 2007. In August there was a sharp increase in the price of wheat and which in October reached level of Ł175 per tonne.

Using Fig. 1.2 and Fig. 1.3 compare the EU wholesale price of butter in 2007 with the average price of feed wheat in the UK in 2007.

As demonstrated in the diagram, in the world wholesale prices of butter were rising in a relatively stable pace, from January to December, rose from 2,500 US$ per tonne to 4,500 per tonne. There was no sharp increase in this pace of growth.

The EU wholesale price of butter increased in a relatively small pace since January till May, and then the pace picked from May till September, in those 5 wholesale price of butter increased from 2.7 Euros per kilogram to 4.1 Euros per kilogram. It than started to fall.