Rising incomes and increased urbanization alter the composition of food demand. Consumers demand more diverse and higher-quality diets that can positively influence their health as well as meet their increasingly diverse taste preferences. Development of food and agricultural industries pivots on the ability to develop and produce high quality products demanded by a market. Introduction of new products to a market or introduction of current/ adapted products to new markets create employment within all aspects of the processing sector and increase returns to the producers of primary agricultural products.

The promotion of agro-enterprises can provide a catalytic force in poverty reduction, both directly and indirectly by:

• reducing food costs and supply uncertainties and improving the diets of the rural and urban poor;
• generating growth, increasing and diversifying income, and providing widespread employment and entrepreneurial opportunities in both rural and urban areas; and,
• inducing productivity gains by smallholder farmers and integrating them into local, national and international markets.

FAO advocates and supports the development of food and agricultural processors in order to enhance economic growth within member countries.