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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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