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The Agri-Food System. Feeding A Hungry World. Agribusiness. The Business of Food. Agri-Food. # 1. In The World. Product Flow in Global Agri-Food System. Ag Commodities. Input Supplies. Farms & Ranches. Food Consumer. Food Retailers. Commodity Processors. Food Manufacturers.
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The Agri-Food System Feeding A Hungry World
Agribusiness The Business of Food
Agri-Food # 1 In The World
Product Flow in Global Agri-Food System Ag Commodities Input Supplies Farms & Ranches Food Consumer Food Retailers Commodity Processors Food Manufacturers Food Products
U.S. AgribusinessLeading the World • Largest Agribusiness Sector in World • Largest Part of U.S. Economy • One of the Best Integrators of Technology • Biggest User of Biotechnology
U.S. AgribusinessLeading the World • Safest Food • Lowest Cost Food • Largest Assortment of Food • 11,000+ new food products per year
The Business of Food • We consume 350+ million tons of food each year ~ about 6 pounds/day/person • Farmers get 19.5 cents of each food dollar • Consumers spend 9.5% of income on food • Each farm worker produces food for 144 people
U.S. Agribusiness With < 7% of World’s Land and 5% of World’s Population, We Produce: 12% Agricultural Output • 12% Wheat • 42% Corn • 47% Soybeans • 16% Cotton • 19% Milk • 28% Cheese We Export: 27% of US Production
People Buy Food For Hierarchy of Reasons Status & Causes Living Well Promoting Health Convenience Tastes Good & Variety Nutritious, Safe, and Affordable
Agribusiness Management: • “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,” by Paarlberg & Paarlberg, pg 59.
The Agricultural Revolution of the 20th 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 page xiii.
The Agricultural Revolutionof the 20th 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 gathers to herdsman and cultivators.” • Source: Paarlberg and Paarlberg, pg xiii
The Processing- Manufacturing Sector The Production Sector The Input Sector The Agri-Food System
Commodity Processing- Food Manufacturing Sector Transforming Commodities To Food Products
Agribusiness is BIG Business 112 Agribusiness Firms Fortune 500 89Beverage Companies — Coca-Cola, Pepsico 262Food Consumer Products Companies — H J Heinz, Hershey 80Food Production Companies — Tyson Foods, Gold Kist 109Food Service Companies — McDonalds, Starbucks 21Food and Drug Stores — Kroger, Safeway 322 Forest and Paper Products — Meadwestvaco 20 Tobacco Companies — Altria Group, Inc. 68Food & Grocery Wholesalers — Sysco
TrendsFarming to Food Factories • Fewer but Larger Facilities • Fewer but Better Educated Employees • A High Tech Business