Knowledge of market information tends to reduce risks and lower transaction costs of participating in the market. These efficiency gains can lead to increased participation in markets and greater stability of prices and supply/demand.
Improved market supply in turn tends to reduce costs and therefore increase demand. More efficient agricultural markets benefit all participants: growers, traders, processors and consumers and can favorably impact food security especially in poorer countries.
Market information systems are improved by better understanding of grades and standards, more effective food safety interventions, market information services, and trade matching services.
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