International price competition among food industries: The role of income, population and biased consumer preference

- Economic growth with demographic transitions and food safety affects food prices.
- Food price hikes are inseparable from economic advancement in the South.
- The deterioration in the safety of foods made in the South increases food prices.
- Guaranteeing the safety of Southern foods leads to stable food prices in the North.
- Artificially promoting stable food prices and ensuring food safety will be needed.

The poor's sensitivity to prices means that a hike in food prices, as a burden on consumers, hinders the adequate supply of inexpensive food and worsens food safety problems caused by low-priced food. This paper theoretically studies the impact of economic growth with demographic transitions and food safety on food prices, providing a background for policies to protect consumers.The results imply that the sources of food price hikes are (a) Economic Growth; (b) Population Growth Accompanied by an Expansion in the Income Gap; (c) Remarkable Population Growth in the Past; and (d) Deterioration in the Safety of Foods Made in the South. In the North, (d) is the most important factor; besides, (a) and (b) 'in the South' would affect global food prices, while food price hikes are inseparable from economic advancement in the South. Accordingly, guaranteeing the food safety of Southern foods leads to stable food prices in the North, whereas as long as economic advancement in the South continues, encouraging policies that artificially promote stable food prices and ensure food safety will be needed for both developing and developed countries.