The Expansion of ModernGrocery Retailing and Tradein Developing Countries
Over the past few decades, modern grocery retailing has been expanding rapidly in
developing countries. The implications for food demand and trade are influenced by
the extent to which modern food retailers focus primarily on growing preferences for
nonprice characteristics, such as dietary diversity, convenience, and quality, as opposed
to introducing supply chain efficiencies that may reduce real food prices over time. Based
on a data set of 103 developing countries, there is suggestive evidence that the expansion
has been associated with growth in demand for nonprice characteristics, such as
convenience in food shopping and preparation. On the other hand, growth in modern
food retailing appears to be uncorrelated with variables indicative of the emergence of
more efficient food supply chains. The impacts of modern grocery retailing in developing
countries are potentially important to U.S. agricultural markets. Growth in developingcountry
imports of U.S. agricultural products has outpaced growth in developed-country
imports in the 1990s and 2000s, with developing countries accounting for 64 percent of
U.S. agricultural exports during 2007-09.