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An Introduction to the Food System Bread

An Introduction to the Food System Bread. AG BM 102. Bakery in Serbia. A jug of wine , a loaf of bread and thou. A jug of wine , a loaf of bread and thou. The Rubaiyat of Omar Khayyam. The Story of Bread. Very ancient product Important in diet Important in culture

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An Introduction to the Food System Bread

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  1. An Introduction to the Food SystemBread AG BM 102 Bakery in Serbia

  2. A jug of wine, a loaf of bread and thou

  3. A jug of wine, a loaf of bread and thou The Rubaiyat of Omar Khayyam

  4. The Story of Bread • Very ancient product • Important in diet • Important in culture • Omar Khayyam • Bible – loaves and fishes • Marie Antoinette – “Let them eat cake.”

  5. Important Agents in Bread • Farmer • Elevator • Miller • Baker • Retailer • Trucker

  6. Who Gets the Money?

  7. Share of Money to Functions • Farmer 4% - 3.4% for wheat – rest other • Elevator – almost zero • Miller – 2% • Baker – 69.3% • Retailer –18.3% • Trucker – 4% • Non-farm ingredients –1.9%

  8. Marketing Defined • The set of economic and behavioral activities involved in coordinating the various stages of economic activity from production to consumption • In simple terms, it is what occurs to farm products from the time they leave the farm gate until they reach the consumer. • It provides time, form, and place utility.

  9. Stages of MarketingFood at Home Wheat Harvest in Kansas • Farmer • Assembler • Processor • Wholesaler • Retailer • Consumer

  10. Stages of MarketingFood Away from Home • Farmer • Assembler • Processor • Distributor • Food Service • Consumer Terminal Grain Elevator

  11. Functions of Marketing • Exchange Functions • Physical Functions • Other Functions

  12. Exchange Functions • Buying • Selling

  13. Physical Functions • Storage • Transportation • Processing Holsum Bread Truck

  14. Other Functions • standardization • financing • market intelligence gathering • risk bearing

  15. Summary • Why is marketing important? • It is the biggest item in food costs! • Provides valuable services • Everyone has an essential job • Everyone gets paid to do it • Does farmer get enough?

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