What higher food prices mean for both consumers and producers at your Essay

What higher food prices mean for both consumers and producers at your own country Which are the factors that drive the food prices higher What, and for whom, are the costs and benefits of such an increase - Essay Example Consequently, the producers’ increases food prices to the consumers so that they can manage continuous food production. This paper will discuss the impacts of increasing food prices to both the producers and consumers. Additionally, it will discuss the factors that drive the food prices high and what or for whom, the cost and benefits of such increase are. Increase in food prices may affect producers positively or negatively. High food prices may affect the demand of food negatively. When the food prices goes high, the demand may go low since consumers may decide to go for cheaper substitutes or may decide to entirely forego that kind of food. For instance, increase in soft juice prices, meat and juices reduce their consumption, since people will opt for alternative food that is cost friendly2. On the other hand, producers may benefit directly from the high prices of food since they will be making more profit. Food prices hikes due to increase in demand hence producers will be able to produce in bulk which will also earn them a lot of sales which in turn increases their profits. To the consumers higher food prices have detrimental effects since some people will be spending more money on food in such a way that they will not have money to spend on non-food items. People who are below average financially, might not afford some food if the prices are hiked hence they might opt to skip some meals which is dangerous to human health. Additionally, the chronic diseases will be in the rise since consumers cannot meet the required dietary needs3. Most people will buy food for general satisfaction without looking into the nutritional value of food. High food prices interfere with the consumer preference. If the consumers visits the market and find that the preferred food is expensive than usual, they shift their preference towards the