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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. Given different diets,
food expenditure and food budget responses to income and price
changes vary between developing and developed countries. In
developing countries, higher income results in increased demand for
meat products, often leading to increased import of live-stock
feed. Diet diversification and increasing demand for better quality
and labor-saving products have increased imports of high-value and
processed food products in developed countries. Consumer groups in
developed countries have also brought attention to organic
production of food and the topic of animal welfare. One way in
which the public and private sectors have responded to consumer
demand for these quality attributes has been by developing and
implementing mandatory and voluntary quality control, management,
and assurance schemes.
This report evaluates the impact of Indonesia's transition from a
food-first focus to an export-oriented development strategy on its
agricultural production, productivity growth, consumer food demand,
and lifestyle. Shifting production and consumption patterns have
led to improving agricultural trade patterns and food security,
which in turn have contributed to increased export opportunities
for U.S. agricultural suppliers.
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