By Jean Kinsey

Production agriculture, agribusiness firms, ingredient and food manufacturers are all changing in response to the information they now share about consumers’ needs, preferences and political concerns. In a world of affluent, educated, and overfed people the marketplace dominates decisions about what to produce, where to sell it, and how to arrange for transactions. With differentiated products and concentrated firms the role of public policy changes from one of ensuring production, setting standards and negotiating global sales to one of facilitating trade and balancing the benefits of economies of scale verses monitoring (monopolistic/monopsonistic) power in the food system.

Themes that emerge in the new global food economy include a shift from supply to demand chains and then to an integrated network of distribution arrangements that moves food around the world. Others relate to consumers’ diversity yet common quest for convenience and value. Some have called it the “brave new world” of food production and consumption.

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