Title: Determinants of Food Supply And Demand - 1167 Words | Essay Example
Headings: Determinants of Food Supply and Demand Essay
Determinants of Food Supply and Demand Essay
Table of Contents
Abstract
Introduction
Factors that affect food demand
Factors that affect food supply
Conclusion
References
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Content: Introduction
In the past few years, the demand and supply of food has increased and decreased in varying degrees. Several reasons are responsible for the observed changes in demand and supply of food. These factors include food scarcity, food prices and volatility, population growth, cost of production, climate, technological factors, economic capabilities of consumers, and tastes and preferences of consumers (Rosegrand et al, 2001). Supply and demand are the main determinants of food prices. Supply refers to the quantity of food that producers avail to consumers at any time. On the other hand, demand refers to the quantity of food that consumers are ready to buy for consumption from producers at certain market prices. Factors that affect food demand
The price of food, number of consumers, scarcity of food, increasing population, and consumers’ tastes and preferences are the main factors that affect food demand (Rosegrand et al, 2001). Increase in food prices is an issue that has been a topic of discussion for many years. The world has experienced a perpetual rise in food prices for the past five years. Reasons for the rise in prices include increased cost of production, decline of major world economies, rising prices of energy, and stringent policies that govern import and export of food products.