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Product Trade

As incomes have risen in many countries during the past few decades, consumers have begun purchasing more high-value food items. Food suppliers have responded to this expanding consumer demand by importing high-value foods from around the world and by investing in processing facilities. The choice to import or produce locally depends on the nature of the product, trade and domestic policy issues, and other factors affecting transaction costs.


Spotlights

Processed Food Trade Pressured by Evolving Global Supply Chains—Many factors affect the choice of locations to produce and sell food products. Patterns of food trade are strongly influenced by the changing nature of competition in the global food industry--from shifting consumer preferences to the growth in multinational food retailers and the ways they manage their global supply chains.

Changing Structure of Global Food Consumption and Trade—Higher income, urbanization, other demographic shifts, improved transportation, and consumer perceptions regarding quality and safety are changing global food consumption patterns. Shifts in food consumption have led to increased trade and changes in the composition of world agricultural trade.

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