1. The Global Agri-Food System
Chapter 1
The Global Agri-Food System

2. The Agri-Food System
Feeding a Hungry World

3. Agribusiness
The Business of Food

4. Agri-Food #1
In the World

5. U.S. Agribusiness Leading 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

6. Product Flow in the Global Agri-Food System
Food Consumers
Product Flow in the Global Agri-Food System
Food Products
Food Retailers
Food Manufacturers
Commodity Processors
Food Distributors
Ag Commodities
Farms and Ranches
What Consumers Want
Input Suppliers

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. With less than 7% of the world’s land and 5% of the world’s population
U.S. Agribusiness
With less than 7% of the world’s land and 5% of the world’s population
We Produce 12% of World Agricultural Output
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
We Export 27% of U.S. Production

11. Farm Productivity and People Fed/Farm Worker

12. Percent of Disposable Income Spent on Food over Time

13. Percent of Income Spent on Food by 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.

14. People Buy Food for a Hierarchy of Reasons
Status and Causes
Source: Jean Kinsey, IAMA, 2000
Living Well
Promoting Health
Convenience
Tastes Good and Variety
Nutritious, Safe, and Affordable

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 Revolution of 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.

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

19. The Input Sector

20. Farm Productivity

21. Farm Inputs

22. Hours of Farm Work Per Acre Planted

23. Crop and Animal Yields

24. The Production Sector

25. Net Farm Income

26. Number of Farms and Dollar Sales by Annual Sales

27. Changes in U.S. Land Use, 1945 vs. 1997

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 Commodities to Food Products

35. What a Dollar of Food Pays For

36. Agribusiness is BIG Business
112 Agribusiness Firms in the Fortune 500
9 Beverage Companies—Coca-Cola, Pepsico
19 Food Consumer Products Companies—H J Heinz, Hershey
12 Food Production Companies—Tyson Foods, Gold Kist
11 Food Service Companies—McDonalds, Starbucks
19 Food and Drug Stores—Kroger, Safeway
19 Forest and Paper Products—Weyerhaeuser, Mead
7 Textile Companies—Westpoint Stevens
5 Tobacco Companies—Philip Morris
11 Food and Grocery Wholesalers—Supervalu,Sysco

37. The Trends Farming 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?