Variation in food consumption

REASON: Economic Factors

Disposable income

  • It is the amount of income left to an individual after taxes have been paid .
  • Higher disposable income = good quality of food, healthy food, expensive food
  • DCs have higher disposable income→ purchase a higher amount and variety of foodconsuming more meat and less cereals.
-For example

In china , there is an increase in disposable income meat consumption per capita have increase. This shows that China is a LDC but it is developing very fast. LDc consists of developing countries and less developed countries.

  • Increase in income have different effects has on food consumption patterns between DCs and LDCs.

-For example

For every US$1 increase in DCs will only used 20% of the income for food .However , in LDCs will use 60% of the income for food which means that LDc will have to spend more in order to get food than Dcs.

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  • Increasing in food prices→people in LDCs are more affected →less disposable income .
  • Food prices rose dramatically worldwide causing a global food crisis.

For example( textbook pg100)→sharp rise in food prices

  • Prices increase due to shortage arising from natural disasters (flood and droughts ) which damages crops or war and conflict resulting abandonment of farms or traders manipulating stock and commodities market by artificially creating demand for food pushing the prices up.
  • Financial traders speculated on food share in the stock market→the market to be dangerously volatile.
  • The graph show a food price index which shows that food prices have been increasing throughout the year which makes it people difficult to consume food by paying more income .
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