Discuss the shifts in demand and supply and the impact on prices and the profitability of individual producers that occurred in the cranberry industry in 2006 and 2007 resulting from the following facts:
a. Cranberries are no longer relegated to a Thanksgiving side dish. They can now be found in more than 2,000 products from muffin mix to soap.
b. Cranberries prefer cold winters and plenty of rain. So last year's unusually warm winter and a summer drought in many parts of the United States and Canada hurt the crop now being harvested. However, one producer says that although his crop is down 30 percent this year, the higher prices will result in a profit decline of only 10-15 percent.
c. Research has shown that cranberries help prevent urinary tract infections. More studies are underway to help determine whether cranberries can prevent dental plaque and tooth decay and help blood move more effectively through blood vessels.
d. Ocean Spray and other growers have unleashed a steady flow of new products, including new low-calorie drinks such as Diet Ocean Spray. The company has also introduced a line of "Grower's Reserve" 100 percent natural juices, including a "Super Antioxidant" variety with blueberry, pomegranate, and cranberry juices.