Food Marketing and Economy: Global Issues and Challenges

Food marketing involves many kinds of challenges such as dealing with a perishable product whose quality and availability varies as a function of current harvest conditions. Food prices also tend to be lower in the U.S. than they are in most industrialized countries, leaving more money for other purposes.  Americans, on the average, are estimated to spend 7-11% of their income on food. Food Marketing Efficiency refers to providing consumers with desired levels of service at the lowest cost possible. The low prices in the US and the price difference may tend to act as a market restrain, especially by posing a threat for the new entrants in the Food Production market due to lower profit margins. The food economy is continuing to globalize and the growth in international trade and investment continues to outpace growth in production. In the coming decades, the global food economy will increasingly become an open market space in which major developing countries will have a greater weightage, as suppliers, as consumers and in terms of technologies. Small and medium sized enterprises (SMEs) are also challenged by the on-going globalization process.

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