Demand and supply factors???

Question

explain 3 demand factors and 2 supply factors that lead to rising food prices in the world???

Answer 1

DemAND Factors:

1. With the growth of income in some emerging countries, the new low middle class population has started purchasing more food.

2.  With decline in poverty incidence in many poor countries, the demand from the poor for food has increased

3. With the growth of World population the demand for food has increased.

4. With the new low moddle class eating more meat, meat production has to increase for which more grains are required to feed poultry and pigs - this further increases the demand for food.

Supply factors:

1. Loss of crop in some agricultural countries due to floods and some other places draught.

2. Stagnant agricultural productivity in countries like India

3. Diversion of agricultural land to bio-fuels from foodcrops resulting a fall in agricultural output