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Suggestions- your input please Student help –tutors- I am your best tutor 94/80 wc BMI calc ADHD drugs and wt loss/ appetite suppression-some ADHD drugs cause wt loss and appetite suppression –also females may be more responsive in terms of weight loss and appetite suppression- a mixed bag of results

CORPORATE ECONOMICS OF NUTRITION

Remember   Food is huge business- over 7 billion customers worldwide and something that people cannot go without-in short a very good business to be in Much of the food market is controlled by very large corporations whose main interest is making profits and keeping shareholders interested in the firm

To keep maintain or increase market share (penetration) of the market a firm needs:   a)      the products people need and want b)  to get the marketing message out to consumers about: i) product price      ii) product benefits to the consumer     iii) why their product is better than competitors

To keep maintain or increase market share (penetration) of the market a firm needs: c) to get message out about why the firm is a good investment: i) good sustainable growth (double digit annually) ii) profits increase (double digit annually)

How is all this accomplished ?

  Products people need and want difference between need and want People need simple food that will meet their nutrient requirements obtained by following Canada’s Food guide- However, the corporate world has convinced us that we need much more than the simplistic approach which in any case would not satisfy the needs of the corporation for sustainable growth and profits. So the corporate world spends billions on:

Getting the marketing message out to consumers -price advertising- methods- television, radio, print, internet, stores -demonstrating good value for the dollar

Marketing-Research and Development   -finding out what customers need, want or what they will accept if they are told they want it. -finding out how to best let customers know a firm has what the customer needs, wants or to accept something if they are told they want it (how to convince them they need something-suggestions?).

Marketing-Research and Development -product development –benefits to consumer   -GMO’S -now genetically modified foods -disease, insect, herbicide and drought resistance - advantages? For who? - future-new foods for marketing -Easy prep foods-e.g.- t.v. dinners -No prep foods-just open and munch

-product benefits-methods as with price advertising Getting the message out to consumers: product advertising   -product benefits-methods as with price advertising -benefits-health, taste, flavour, texture, smell, appearance -product advertising in store includes food labelling

Getting the message out to consumers: why their product is better than competitors   -science-determination of nutrient content and health benefits (indeed the risks of their competitors’ products) -surveys- asking people what they like (and advertising that) or don’t like about a product and then using science in an attempt to fix the problem.

c) Getting the message out to shareholders or potential shareholders:   Money from shareholders needed to run the operation – Otherwise have to borrow from banks and that costs the company in terms of interest whether things go badly or well

Therefore shareholders are a better way to go: No interest to pay if things go badly   If things go well, the dividends paid to shareholders and increased share price payouts are less than interest payments

Get shareholders by showing them that the company has:   Good sustainable growth(double digit) Profits (double digit) after inflation

Consequences of the almighty dollar (corporations) running the food show: World hunger-even during the Ethiopian famine of the 1980’s they were exporting beans to Europe   Some individuals decry the decline of the small family farm and its replacement with the huge corporate megafarm. Is this is a consequence of economies of scale? 

If the minimum efficient scale for agricultural production is sufficiently high, small, family farms simply cannot produce enough to be competitive with large, corporate farms.  To the extent that the replacement of family farms with corporate farms is a response to issues of scale economies, then, economically speaking, it is a good (read “efficient”) thing. 

Efficiency means profitability and sustainable growth- things the shareholder needs and wants and remember the company needs and wants shareholders

Thus large firms are capable of largely controlling production, and hence processing and hence shipping and hence sale of food and their job is get people to eat more not less (consequences).   Private farmers are sometimes barely making it-squeezed by the corporate main players

Devastation of ecology, social and economic structures: Corporate farming takes economic control away from local people (social structures also suffer as they are tied to and affected by poverty) and by its very nature does not respect the environment (efficiency is the name of the game here)

Control of prices- for example demand surging ahead of supply-prices soar –consequences?   Nutritionally- people are getting fatter through advertising and fast food (including vending machines)-current suggestions of lawsuit in USA -issue of physical activity

Note http://w.subway.com/en-ca/MenuNutrition/Nutrition Artificial sweeteners may cause weight gain and may contribute to the onset of type 2 diabetes

ECONOMICS OF NUTRITION GOVERNMENTS AND SOCIAL AGENICES

Why do governments care about nutrition from an economic perspective?  

Why do governments care about nutrition from an economic perspective? -ultimately they will foot much or all of the bill for the health and other costs associated with poor nutrition

Why do governments care about nutrition from an economic perspective? other costs- loss of productivity- person may get fired and the combination results in a loss of tax money to various levels of government

Why do governments care about nutrition from an economic perspective? -with poor productivity the society cannot obtain the goods and services it needs and hence there is a reduction in purchasing and subsequently the tax base derived from the purchase of those goods and services

Why do governments care about nutrition from an economic perspective? -reduction of tax base means less money for government nutrition services and hence population nutrition suffers  

government and social agencies also care from a strictly humanitarian viewpoint

Economically, what do governments do about nutrition?   Federal Baby bonus (now known as Canada child tax benefit (CCTB))-tax relief for low to moderate income families National Child benefit supplement- on top of CCTB What’s the problem with giving money? Alternatives to giving money to poor?

Economically, what do governments do about nutrition? FEDERAL Support nutritionally vulnerable populations   Supporting nutrition research Reinforce healthy eating practices Food inspection Insecticide use

Economically, what do governments do about nutrition? FEDERAL Farmers- Subsidise farmers –directly in prices or grants         -low interest loans   -crop insurance Food supply protection -CFIA

Economically, what do governments do about nutrition? Provincial-Nova Scotia   Welfare Pays (along with Ottawa) for health care-Flu shots

Economically, what do governments do about nutrition? NOVA SCOTIA Public health pamphlets Nutrition. Breastfeeding is Easy to Learn. Breastfeeding When You are Away from Baby. Breastfeeding After the First Six Months. Breastfeeding Feels Good. Breastfeeding does not have to change the way you Eat. Breakfast, Lunch and Snack Ideas for School Children. After Year One: Food for Children Department of Health  

Economically, what do governments do about nutrition? NOVA SCOTIA Agriculture Ministry Promoting aquaculture (grants and information) promoting (marketing and market development) of various crops eg blueberries, milk, various vegetables, grain, greenhouse cucumbers, beef Providing information on Livestock (turkeys), Grain, Forage and Horticultural Crop Production, Pest Management and Agricultural Engineering

Economically, what do governments do about nutrition? NOVA SCOTIA Environment   Promotion of safe food handling Nutrition Teachers and Researchers

Economically, what do governments do about nutrition? Municipal or Local   NS Dep’t of the Environment -inspection of restaurants, pubs etc. NS Health Authority -carries out mandate of provincial government for health

Economically, what do social agencies do about nutrition? MUNICIPAL OR LOCAL Social Agencies   Food Banks -give food in the place of money Churches -give shelter and food in the place of money

Economically, what do social agencies do about nutrition? MUNICIPAL OR LOCAL Salvation Army -give shelter and food in the place of money   Canned Food Drives-schools for example