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The Agri-Food System

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

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  1. The Agri-Food System Feeding A Hungry World

  2. Agribusiness The Business of Food

  3. Agri-Food # 1 In The World

  4. Product Flow in Global Agri-Food System Ag Commodities Input Supplies Farms & Ranches Food Consumer Food Retailers Commodity Processors Food Manufacturers Food Products

  5. 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

  6. U.S. AgribusinessLeading the World • 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/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

  8. 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

  9. Farm Productivity& People Fed/Farm Worker

  10. Percent of Income Spent on Food

  11. People Buy Food For Hierarchy of Reasons Status & Causes Living Well Promoting Health Convenience Tastes Good & Variety Nutritious, Safe, and Affordable

  12. 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.

  13. 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.

  14. 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

  15. The Processing- Manufacturing Sector The Production Sector The Input Sector The Agri-Food System

  16. The Input Sector

  17. Hours of Farm WorkPer Acre Planted

  18. The Production Sector

  19. Farm Numbers & Salesby Annual Sales

  20. U.S. Processed Food Imports and U.S. Exports

  21. Changes in US Land Use, 1949 vs. 2002

  22. Commodity Processing- Food Manufacturing Sector Transforming Commodities To Food Products

  23. What a Dollar of Food Pays For

  24. 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

  25. TrendsFarming to Food Factories • Fewer but Larger Facilities • Fewer but Better Educated Employees • A High Tech Business

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