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Review of Trends in Fast Food Consumption

Article in European Journal of Economics, Finance and Administrative Sciences · May 2012

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European Journal of Economics, Finance and Administrative Sciences
ISSN 1450-2275 Issue 48 (2012)
© EuroJournals, Inc. 2012
http://www.eurojournals.com/EJEFAS.htm

Review of Trends in Fast Food Consumption

Aysha Karamat Baig


Scholars, Management Sciences Department
Riphah International University, Islamabad, Pakistan
Tel: +0092-300-6649567
E-mail: ayshakaramat@gmail.com

Munazza Saeed
Scholars, Management Sciences Department
Riphah International University, Islamabad, Pakistan
Tel: +0092-345-7800230
E-mail: myz_munaza@yahoo.com

Abstract
Fast food consumption increased dramatically in Pakistan. Dramatic changes in food
consumption, and profound public concern about health and obesity elucidated that there is
a certain considerable need for research to understand better the attributes or strategies
driven by fast food centers in Pakistan. The purpose of this paper is to analyze the fast food
market and customer attitudes in Pakistan, and outlined successful and smart strategies of
the fast food companies in their attempt to penetrate the Pakistani market. The objective
had been achieved by reviewing McDonald, KFC, Almaida, Frichick’s and other well-
known fast food centers in eastern side of Pakistan, qualitative or exploratory methodology
was used, that included observational research, surveyed the customers in two big cities of
Punjab (Pakistan) by using convenience sample of 100 respondents. Food choice variables
have been explored using literature reviews. The subject scope of the paper covers fast food
sector development and trends that are foundation for increasing consumption and leading
to the social dilemma of Health deterioration as increasing Global obesity. Factors having
impact on Consumers food choices are; fascination for eating out, socialization,
urbanization, taste for college and university students, convenience for dual-income
families in Pakistan, and many other.

Keywords: Consumption, Fast foods, Pakistan. Paper type: Research paper

Introduction
Eating in Pakistan is a stirring practice and food has many different styles with immense restaurants in
all the big cities of Pakistan. Worldwide Cuisines can be cooked in Pakistan, like Asian, Middle
Eastern, Indian, and approximately all international dishes, similarly Fast food chains are mounting in
popularity by reason of convenience and their home oriented approach. “In data Monitor’s (2005)
survey, the fast food market is defined as the sale of food and drinks for immediate consumption either
on the premises or in designated eating areas shared with other foodservice operators, or for
consumption elsewhere”(Anand,2011). Today, eating out entirely is part of fast lifestyle, not just a
special treat as it was in years past. Evolution of eating out and food away from home to an extent of
78 European Journal of Economics, Finance and Administrative Sciences - Issue 48 (2012)

food revolution is an outcome of changing food and eating habits of the consumers towards
convenience in the present time-starved societies, where both husband and wife are working. Roberts
and Worzel (1979) stated that large number of women working outside the home had less time to cook
food at home so, the women’s time was considered to be an important factor in raising the demand for
fast food consumption in developing countries (Senauer, Sahn, and Alderman 1986). Globalization has
influenced the production and processing of food as well as its sales, preparations and consumption and
with growing relative importance of snacks, burgers, pizzas and fizzy drinks, people are snacking in a
new way. Urbanization is also one of the factors leading to change lifestyles and increased income and
independence of young people,as it had been stated that demand for food is associated with the life
style of urban areas (Pingali, 2004), and consumption of western style food increased as the income
level of developing countries increased (Regmi and Dyck, 2001). As a result changes in tastes and
lifestyles backed by urban living will significantly impact food demand and utilization patterns.
Nichanj (2005) described that changing lifestyle and work habits decide consumer’s food choice for
fast food that is directing them towards junk health.

Objectives of Study
1. To evaluate the strategies used by the fast food organizations Macdonald, KFC, Almaida, and
Frichick’s, to target the consumers.
2. To review the factors that had changed the trend of food consumption in context of Pakistan.

1. Review of Literature
The fast food industry, originally conceived in Southern California during the 1940s, not only altered
the eating habits of Americans, but also those in many other countries around the world, including
Asian countries (Schlosser, 2001).In Pakistan first, Fast food center was opened in 1997 that was KFC
and just after one year in 1998(www.kfc.com.pk,02:06pm,11-03-12) McDonalds started its first outlet
in Pakistan(www.mcdonalds.com.pk,02:06pm,11-03-12).
Now Fast food centers found on the corners of streets, off the side of interstates, airports, malls,
schools, gas stations, local shopping center, and even in hospitals. There had been some factors behind
growing industry of fast food in Pakistan. “A model of factors affecting consumer decision making
regarding food products: a case study of USA and Japan” scrutinized that there are many factors like
values, eating habits, family structure, tastes and fondness affecting consumer food choice decision
making between the countries and even within countries (Nelson, 1992).
Food buying behaviors checked up as part of a “cultural ideology,” that can be prejudiced by
material and social requirements, dependent more on history, routine, disinterest, and an visual
sensibility to form consumption patterns (Anand, 2011).Not only adults but children had been fonder
of going to the fast food restaurants for having fun on occasions like birthdays, results and even get
together parties. Fast foods taste good to those youngsters, which make them believe that fast food is
quick, easy and satisfying as fast food centers had been making “value” meals for children that are
increased in portion sizes and becoming a fashion, as customers are not only eating but enjoying the
environment. Goyal and Singh (2007) have culminated that the young consumers visit fast food
channels for fun and change.
Fast food chains had been, innovative and forceful at inviting customers out of their kitchens up
to fast food centers. Cullen (1994) stated in his work, titled “Time, tastes and technology: the economic
evolution of eating out” interpreted that the rising Americanization of eating out had tracked a culture
of fast food and provided more importance to convenience and eating out behavior due to such certain
reasons, dramatic changes occurred in fast food consumption of Asian countries (Shetty, 2002).
Structural changes in the demand for food in Asia have projected that Asian countries had been
79 European Journal of Economics, Finance and Administrative Sciences - Issue 48 (2012)

undergoing transformations in their economies supported by rapid urbanization and this trend would
continue in the years to come (Huang and Howarth, 1996).
The United Nations Economic and Social commission for Asia predicted that by 2020 fifty
percent of total population would be urban; half of that population would be from Asia. So fast food
organization had been taking it as an opportunity to serve Asian developing countries like Pakistan that
had considered as an attractive segment of market. “Food in a globalized world” has concluded that
food is a means of life but it has become meaningful investment for business (Ragavan, 2003). But in
an unhealthy way, as there is a potential link between fast food intake and weight gain (Rosenheck,
2008). The health of the children around the world is put at risk by the marketing of junk food, said in
a report from the Food Commission issued recently.
The study is elected to explore consumer food choice variables in the wake of changing food
and eating habits, and to get better understanding of factors that are inducing people towards more
consumption of Fast food. There are fundamental strategies, intended at getting customers into
restaurants; some of these strategies had been described, adopted by different fast food companies in
Pakistan. Previous studies (McNeal, Stem, Jr. and Nelson, 1980; Miller, and Ginter, 1979; Louviere,
1984) helped to govern the multi feature criteria on which consumers differentiate fast-food
restaurants.
Eleven characteristics were provoked from the past studies (Nelson, 1992) and they are price,
responsiveness of employees, diversity of menu, service swiftness, calorie content,
cleanliness/Environment of the outlet, convenience; business hours/elimination of gap in meal;
delivery service; inventiveness for children; seating facilities, out of upper mentioned strategies all of
these strategies had been directing Pakistani customers to spend more than they’d thought at first
fleeting look. Fast food centers, strategized to fulfill the gap in meal through identifying the need of
customers for wide range of variety in breakfast, restaurants that had only been open for lunch and
dinner, were absent on breakfast. Though, different fast food centers had started opening early in the
morning and offering breakfast meals, For example; During Ramadan McDonald’s started offering
Special “Sehare” deals.
Their key to success was to look for menu lines that are a flavor variation on core lines (vertical
expansion) rather than looking for horizontal menu expansion, on line ordering, group discount
coupons, had captured young student through arranging concerts inside fast food centers and
sometimes by offering tickets on some special meal offerings. At the same time they induced children
attention by providing play land area, as children are a great market for them also, Preferably children
more like to invite their friends on their birthdays at fast food centers as they has developed the thought
that there they can have better time in a pleasant environment as well.
They facilitated customer, if customer had not been coming inside the door then food can be
delivered to them at their place whether at working areas(Office meal) or watching movies at their
homes, they had tried to be more convenient ever, as previous research showed that there had been a
constant rise in the demand for convenience foods and snacks over a number of years (Traill, 1994;
Keynote, 2003).Fast food centers had been offering special mid night deals may be at lower price or by
offering Buy One get one free schemes. Similarly; with easy and effective drive through services, they
are making more margins on sales with the concept behind that they care about their customer’s time
and convenience. In this study author had tried to evaluate what attributes had been becoming the
reason for customers attraction towards fast food in Pakistan.

2. Research Design
2.1. Study Designs and Methods
This study is basically an exploratory research to give an insight into the trends that has increased the
fast food consumption. An empirical investigation has been done to study the implications of fast food
consumption on health and healthy eating habits of the consumers using reliable data sources. The
80 European Journal of Economics, Finance and Administrative Sciences - Issue 48 (2012)

research has been carried out in two stages. In stage I, literature review has been done to study
variables impacting consumer’s food choice worldwide, more precisely in Pakistan. In second stage
data were gathered by primary data collection method through personally administered questionnaires.
An exploratory questionnaire has been designed on parameters concerning food choice and a consumer
survey has been conducted to study the scope to which consumer demographics and consumer
psychographics has an impact on fast food choice. The technique of sampling used in this study was
non-probability convenience sampling method because it was a feasible alternative, due to the
limitation of time, costs, and conveniences in order to find adequate respondents.

2.2. The Research Instrument


The data for the survey are collected through a self-administered questionnaire. The questionnaire is
divided into two sections. The first section of the questionnaire is about general information of the
respondents. Second section focuses on general demographic and psychographic factors which may
have an effect on customer satisfaction.

2.3. Sample of the Study


Data obtained from the convenience sample and literature reviews has been generalized for inferring
consumption patterns of Pakistani consumers (population). A total of 100 respondents took part of this
study. Though, careful consideration was specified by the researcher. Consumers with no age limit
from Lahore and Faisalabad frequently visited in the fast food outlets like McDonald’s, Almaida, Fried
Chicken (KFC), Frichick’s, Pizza Huts and many others population of interest. The sample of
population has been collected keeping in view the difference in food choice behavior exhibited by
school and college going children and families with and without dual incomes towards eating out and
food away from home according to the amount of work pressure and adoption of Western lifestyles.
The criteria of initial research is demographic variables-age, income, education, gender and stage in
family life cycle and psychographic variables, lifestyles, activities, interest and opinion have also been
used.

2.4. Statistical Analysis Technique


Proportion technique was used through Excel package, frequency table’s graphs and pie charts were
plotted to get it presentable and have a check of evaluated percentage in different parameters to get
required output. Using Excel package different socio demographic factors have been analyzed whether
escalating trend of fast food is dependent over them while determining strategies implemented by fast
food centers, which has been working as a key tool to fluctuate the reaction of respondents.

3. Results and Discussions


Data analysis was conducted in two steps:
1) First round analysis that was based on basic factors that came in view through secondary data
and analyzed demographic and psychographics of fast food consumers.
2) Analysis of the factors those were significant for increasing trends of fast food consumption.
First round analysis focused on the basic factors that were taken from secondary data study, and
provided the base for the elected study.

3.1. Respondents Profile


Questionnaires were divided equally for Lahore &Faisalabad Demo psychographic issues had
significant importance as youngsters more prefer to visit fast food centers, due to its convenience, dual
salary people where husband and wife both had been earning made regular customers of fast food
81 European Journal of Economics, Finance and Administrative Sciences - Issue 48 (2012)

centers, as well as ratio of percentage education, age and marital status, has computed regarding
sample of study. Previous research showed that male students were more likely to eat fast food than
female students (Asano et al., 2003; Kobayashi, 2010).

Figure 4.1: Educational Level of People Surveyed (%)

In Fig 4.2.1 educational level of people surveyed has been computed. According to results
sample taken was comprised of 2.00 percent uneducated people,4 percent people were primary or
middle,17 percent matric,18 percent intermediate,36 percent graduate and 23 percent post graduate
people. Studies indicated that student of colleges and universities more tend to visit and frequently take
meal outside their homes and there focus had been fast food centers preferably.

Figure 4.2: Age Classification of People Surveyed (%)

Study indicated that younger people consume more beef and older people consume more fruits
and vegetables. Similar patterns are observed in other Asian countries. In Pakistan young people
consume fast food more than older people. Fig 4.2.2; indicated age classification of people that were
surveyed, sample was divided into 4 age groups, people between15-25 age were 70%,25-35 were
16%,35-45 were 6% and 45-55 were 8 percent. They were surveyed and their preferences were
analyzed. Fast food consumption is particularly high among young adults (Guthrie, Lin, and Frazao,
2002).

Figure 4.3: Marital Status OF People Interviewed (%)

Fig 3 showed marital status of people that were interviewed, among them 63.04 were single and
34.78 were married.
82 European Journal of Economics, Finance and Administrative Sciences - Issue 48 (2012)
Figure 4.4: Spouse Working Status of Married Respondents (%).

Women participation in the labor force is rising that could lead to improvement in income and
they turned to use the ready to eat food. Because they have more money and less time to cook the food.
The work of Jackson and McDaniel (1985) had shown that working wives disliked the cooking and
food shopping. Fig 4.2.4 indicated the people who were having the dual income 56 percent people
were households and not employed, and other were 44% who were employed and their spouse was also
working, that mean percentage of working wives has been increasing.

Figure 4.5: Working Status of People Interviewed (%)

Fig 5 showed working status of people interviewed, students were 60 percent,1 percent
unemployed,16 percent employed,9 percent businessman, and 11 percent were housewives.

3.2. Factors Playing Pertinent Role To Enhance Fast Food Trend In (Faisalabad & Lahore)
The second phase was focused on analyzing the dimensions of factors that had influenced the
consumption behavior of customers. Different factors from previous research were taken and selected
those in accordance with Pakistani culture. People were interviewed, according to their fast food
preferences and opinions following results were computed.99% people were of opinion that that Fast
food (FF) industry is Growing rapidly, just 1% denied.89% people were preferring fast food over fine
dining, 10% admired fine dining or cooking at home.77% people were preferring discount offerings by
FFCs, and of thought that in this way they can get more or more at lesser price.70% people were of
opinion that FF is much more convenient than fine dining, they can take it away or get it delivered at
their required places, when starving.23% respondents were of opinion they had nothing to do with its
convenience.

Table 4.1: Response of Interviewees

Sr. Statements No % Yes %


1 FF industry is growing rapidly? 1.00 99.00
2 Prefer Fast food due to its taste? 10.00 89.00
3 Get benefit from discount offers 23.00 77.00
4 Like it because of its convenience? 30.00 70.00
5 FFCs revise their menus frequently? 38.00 62.00
6 Do you like the services of FFCs? 37.00 63.00
7 Satisfied with the price charged by FFCs? 60.00 39.00
83 European Journal of Economics, Finance and Administrative Sciences - Issue 48 (2012)
Table 4.1: Response of Interviewees - continued

8 FFCs encourage people through claim of Halal food (in Pakistan)? 22.00 78.00
9 Are You diet conscious? 57.00 43.00
10 FFCs are to blame for obesity? 30.00 70.00
11 FFCs have added healthier options to their menu? 28.00 71.00
12 Prefer to take away deals from drive through services 39.00 61.00
13 Upcoming promos influence your eating behavior? 27.00 73.00
14 Prefer deals with Up sized drinks? 33.00 67.00
Prefer those FFCs that customized their taste (rich in taste and with little spices)
15 20.00 80.00
according to culture?

62% love Fast Food because they frequently revise their menus, and 38% denied. 63% people
praised FFCs for their quick services but 37% did not. Islamic ruling on food handling dictates the
procedure for slaughtering animals for consumption need to strictly be performed by Muslim
employees where the act of slaughtering needs to begin with the name of Allah. This is because such
act is not merely the saying of the word “Allah” but it must be accompanied with a person who has the
faith as a Muslim. Hence, the Halal logo or label cannot be taken lightly; the Halal label needs to be
certified by a credible authority. K&Ns used Halal as logo in fast food. In Pakistan majority is of
Muslims then FFCs can only be successful if using K&Ns meat as they has been slaughtering
according to defined Islamic way due to their good will FFCs has been using K&Ns meat to sustain
their consumers 78% people found satisfied with this act, but 22% were still doubtful.43% respondents
were diet conscious but 57% people were not. Previous research indicated that a stressed nation with
obesity, overdoing the late-night fast food may cause disorder with waistlines and health. When look at
certain people over weighted and have problem in losing weight, than look at environment. Studies had
shown that there is a relationship between fast food consumption and state of obesity; US national
Bureau stated that 65 percent obesity is caused by snacks and fast food (Anand, 2011). Astonishing
Fact during surveying Lahore & Faisalabad found that 30% people were not blaming FFCs for
increasing rate of obesity; but 70% were considering FFCs for increase in rate of obesity. Its suggested
that exponential expansion of the fast food industry was joined to the outbreak expansion of obesity in
the world (Critser, 2003; Schlosser, 2001; Shell, 2002) Furthermore, 71% were thinking that FFCs
have added healthier options to their menu and they can easily replace their meal Fast food but
according to 28% people it is quite unhealthy practices to take Fast food in routine.61% people prefer
FF using drive thru services and 39% were not affected by their drive thru service. Advertising is an
immensely powerful tool, which can bend the decision of even the most clued-up consumers. It has the
power to reinvent the familiar and make the unfamiliar Trust worthy. It preys on the human need to
belong and lures people into buying into a lifestyle, an identity. McDonalds’ and other fast food brands
had also used this strategy, and utilized red & yellow colour in their logos and brand image, as these
colours influence hunger and FFCs had usually been claiming that they better understand their
customer’s needs, during survey author has computed that 73% people’s consumption behavior was
influenced by viewing new deal promos on TV except 27% people, that means advertisement has been
affecting consumption pattern of people.67% Up sized drinks while getting deals.80% respondents
were of opinion that that FFCs had customized their taste according to cultural need of Pakistan but
20% people disagreed as according to them still there is some need to make it little bit spicy.

Figure: 4.6: Restaurant Preferences (%)


84 European Journal of Economics, Finance and Administrative Sciences - Issue 48 (2012)

Author tried to compute an analysis among different fast food centers of two cities to analyze,
where people has preferred to visit frequently for taking meal, highest ratio was with KFC, then pizza
Hut and after that Mc Donald’s preferred consumption was high in percentage. The strategy used by
KFC was home delivery services and unique taste of chicken, through which they has been entertaining
their customers whether they are working in any organization, or students as especially in Lahore they
has been delivering full meal in offices, and also customized their taste that is little bit spicy than other
FFCs.

4. Conclusion
It was concluded that fast food consumption is increasing day by day, during author’s survey it was
computed that people prefer to get convenience food that they can just take away from drive thru,
Faisalabad is a mass market there people are divided into two major entities, as either people belong to
elite class or either from low class now, middle class is not of large population size, whereas majority
of middle class and Upper class people is in Lahore. People who focused to go outside and visit
different fast food centers as well as fine dining had usually priorities for good taste, but prefer fast
food just due to its convenience and good taste as well. College students and employed people had
been fonder of fast food, as they had short timed schedules and prefer it due to its convenience; on the
other hand usually college students and other people don’t understand or blame fast food centers for
increasing obesity.

4.1. Suggestions
Development is not about growth of food outlets and altering food and eating behaviors that is at the
price of consumer’s health. As a matter of fact, the country where millions of people are under pressure
for food, upper and upper-middle classes are becoming obese. Food is a means of life but it has
become significant investment for business. Social dimensions of globalization of food business justify
immediate attention that has been increasing global obesity.

4.2. Limitations of the Study


This study is exploratory and has some limitations as data obtained from the convenience sample and
literature reviews has been generalized for consumption patterns of all Pakistani consumers.

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