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1. Chapter 1 The GlobalAgri-Food System
5. U.S. AgribusinessLeading the World Largest Agribusiness Sector in the World
Largest Part of U.S. Economy
One of the Best Integrators of Technology
Biggest User of Biotechnology
Safest Food
Lowest Cost Food
Largest Assortment of Food
11,000+ New Food Products per Year
7. The Business of Food We consume 350 million tons of food each year – about 6 pounds per person per day
Farmers get 20 cents of each food dollar
Consumers spend 10.4% disposable income on food
~ 6.2% for food at home
~ 4.2% for food away from home
Each farm worker produces enough food for 103 people – 75 in U.S. and 28 abroad
Number of farm workers is greater than the combined total of workers in the auto, steel, and transportation industries
8. Dollar Value of Agri-Food Output by Industry
9. U.S. Agri-Food Employment
10. U.S. Agribusiness 47% of the world’s soybeans
42% of the world’s corn
28% of the world’s cheese
19% of the world’s milk
16% of the world’s cotton
12% of the world’s wheat
11. Farm Productivity and People Fed/Farm Worker
12. Percent of Disposable IncomeSpent on Food over Time
13. Percent of Income Spent on Foodby Country Table 10-1 from Paarlberg/Paarlberg, pg 118. Their source: UN Statistical Division, 1992, Handbook of the International Comparison Programme, Series F, No. 62. NY: UN.Table 10-1 from Paarlberg/Paarlberg, pg 118. Their source: UN Statistical Division, 1992, Handbook of the International Comparison Programme, Series F, No. 62. NY: UN.
14. People Buy Food fora Hierarchy of Reasons Source: Jean Kinsey, IAMA, 2000Source: Jean Kinsey, IAMA, 2000
15. Agribusiness Management:The Integrator of the Disciplines “Science remains in the laboratory unless there is incentive to adopt the knowledge. This is the difference between science and technology. {Agribusiness Management} is the integrator.”
Source: The Agricultural Revolution of the 20th Century, Paarlberg and Paarlberg, p. 59.
16. The Agricultural Revolution of the Twentieth Century – I “If a farmer from Old Testament times could have visited an American farm in year 1900, he would have recognized—and had the skill to use—most of the tools he saw: the hoe, the plow, the harrow the rake. If he were to visit an American farm today, he might think he was on a different planet.”
Source: Paarlberg and Paarlberg, p. xiii.
17. The Agricultural Revolutionof the Twentieth Century – II “The changes that occurred in American agriculture during the 20th century exceed in magnitude all the changes that occurred during the 10,000 years since human beings first converted themselves from hunters and gatherers to herdsmen and cultivators.”
Source: Paarlberg and Paarlberg, p. xiii.
20. Farm Productivity
21. Farm Inputs
22. Hours of Farm WorkPer Acre Planted
23. Crop and Animal Yields
24. The Production Sector
25. Net Farm Income
26. Number of Farms and Dollar Salesby Annual Sales
28. U.S. Agriculture in World Trade
29. Impact of Agricultural Exports
30. Agricultural Exports in 1975
31. Agricultural Exports in 1998
32. Trading Partners – 1975
33. Trading Partners – 1998
34. The Commodity Processing-Food Manufacturing Sector Transforming Commoditiesto Food Products
35. What a Dollar of Food Pays For
37. The TrendsFarming to Food Factories Fewer but larger facilities
Fewer but better educated employees
A high tech business
38. Discussion Questions List and briefly describe the six parts of the global agri-food system.
Define and describe each word in the term agri-food system.
Why was agriculture a prime market for the adoption of production-enhancing and labor-saving devices during the industrial revolution?
How have Americans’ perceptions of food changed in recent years? What does this mean for firms in the agri-food system?
What is the difference between science and technology?
What is the role of business management in the success of the agri-food system?
39. Discussion Questions Identify the three major sectors of the agri-food system. Describe the evolution of agriculture into the agri-food system.
Describe the role of export markets and how they have changed in the past 25 years.
Describe the production sector’s environmental record.
Describe what you see as the future of the agri-food system in meeting the food needs of the world’s population and as a place to work.
Explain why you are optimistic or pessimistic about the agri-food system’s ability to produce enough food to feed a hungry world. What are the biggest challenges it will face in achieving this crucial goal?