In the early 20th century, most types of farm products were sold as commodities on the open market. Sellers brought their hogs or cattle to centralized terminals, or their grain to country elevators, where current prices were paid on the spot. The rule of the day was "pushing" large volumes of standardized commodities through the supply chain, which kept costs down. This system worked well as long as consumers sought basic staples for cooking meals in their own kitchens. Today, many consumers demand and have available a wide assortment of prepared foods, including complete meals purchased at restaurants and supermarket deli counters. Changing U.S. demographics-more mature consumers, greater ethnic diversity, and larger incomes-are driving changesin consumer demand for food products. Today's time-pressed consumer is using his or her higher level of income to purchase more convenience, while looking for quality, variety, and value. Changing consumer preferences, along with technological advances and other changes in the economy, offer agribusiness companies new opportunities. Understanding the diverse preferences of consumers moves to the forefront and "pulls" products through the supply chain. Communicating consumer preferences back through thefood system to prompt the needed adjustments in a cost-effective manner becomes the challenge.
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