Our Food System
8
9/5/2008 1 TrendsToward Local Food A Marketing Perspective Dr. John Park Roy B. Davis Professor of Agricultural Cooperation Our Food System Farm Supply Farms First Handler Food Commodities Food Products Processor Distributor Retailer Breakdown of the Consumer Food Dollar $600 $700 $800 $900 s (Current) $0 $100 $200 $300 $400 $500 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 Billion Dollars Farm Value Marketing Bill Source: USDA / ERS Food Expenditures as a Percent of Disposable Personal Income 20 25 30 0 5 10 15 1930 1940 1950 1960 1970 1980 1990 2000 Percent Food at Home Food Away From Home Source: USDA / ERS What a Dollar Spent for Food Paid for in 2000 What a Dollar Spent for Food Paid for in 2000
Transcript of Our Food System
9/5/2008
1
Trends Toward Local Food
A Marketing Perspective
Dr. John ParkRoy B. Davis Professor of Agricultural Cooperation
Our Food System
Farm Supply Farms First Handler
Food Commodities
Food Products
Processor Distributor Retailer
Breakdown of the Consumer Food Dollar
$600
$700
$800
$900
s (C
urre
nt)
$0
$100
$200
$300
$400
$500
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
Bill
ion
Dol
lars
Farm Value
Marketing Bill
Source: USDA / ERS
Food Expenditures as a Percent of Disposable Personal Income
20
25
30t
0
5
10
15
1930 1940 1950 1960 1970 1980 1990 2000
Percen
t
Food at Home
Food Away From Home
Source: USDA / ERS
What a Dollar Spent for FoodPaid for in 2000
What a Dollar Spent for FoodPaid for in 2000
9/5/2008
2
Food Industry Stats, 2006
RestaurantsRestaurants
$511$511$500$500 925925
12.512.5
3.43.4
Sales(billions)
Sales(billions)
Locations(thousands)Locations
(thousands)Employees(millions)
Employees(millions)
SupermarketsSupermarkets
3434
Source: NRA, FMI
Food System ImpactsCosts and Benefits to Society
Societal Impacts
Low cost foodGreater wealth to dedicate to other uses
Industrialized food productionReliance on fossil fuels
POSITIVEPOSITIVE NEGATIVENEGATIVE
to other usesGreater convenienceGreater varietyYear‐round availabilityCertain and reliable food supply
Reliance on fossil fuelsLess varietyIncreased rate of obesityIncreased rates of Type II Diabetes
Obesity Rates
Obesity Trends Among U.S. AdultsBRFSS, 1985
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data <10% 10%–14%
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1986
No Data <10% 10%–14%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
9/5/2008
3
Obesity Trends Among U.S. AdultsBRFSS, 1987
No Data <10% 10%–14%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1988
No Data <10% 10%–14%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1989
No Data <10% 10%–14%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1990
No Data <10% 10%–14%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1991
No Data <10% 10%–14% 15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1992
No Data <10% 10%–14% 15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
9/5/2008
4
Obesity Trends Among U.S. AdultsBRFSS, 1993
No Data <10% 10%–14% 15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1994
No Data <10% 10%–14% 15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1995
No Data <10% 10%–14% 15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1996
No Data <10% 10%–14% 15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1997
No Data <10% 10%–14% 15%–19% 20%–24%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 1998
No Data <10% 10%–14% 15%–19% 20%–24%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
9/5/2008
5
Obesity Trends Among U.S. AdultsBRFSS, 1999
No Data <10% 10%–14% 15%–19% 20%–24%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 2000
No Data <10% 10%–14% 15%–19% 20%–24%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 2001
No Data <10% 10%–14% 15%–19% 20%–24% 25%–29%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 2002
No Data <10% 10%–14% 15%–19% 20%–24% 25%–29%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 2003
No Data <10% 10%–14% 15%–19% 20%–24% 25%–29%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. AdultsBRFSS, 2004
No Data <10% 10%–14% 15%–19% 20%–24% 25%–29%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
9/5/2008
6
Obesity Trends Among U.S. AdultsBRFSS, 2005
No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
Source: Behavior Risk Factor Surveillance System, CDC
Top Causes of Mortality in US, 2005
Heart disease: 652,091Cancer: 559,312Stroke (cerebrovascular diseases): 143,579h l dChronic lower respiratory diseases: 130,933
Accidents (unintentional injuries): 117,809Diabetes: 75,119
Source: National Center for Health Statistics, CDC
How did we get here?
WealthUS consumers are relatively wealthy, spending only about 10% of disposable income on food
PopulationFamilies continue to feel the pressure of time with
d l l h h ldmore dual‐income or single parent householdsConvenience
Demands on time have changed how we shop, what we eat, and how we cook
TechnologyThe fast pace of technology has not only impacted consumer behavior and expectations, but also changed what is possible for manufacturers
Who do consumers rely on to help them eat healthy foods?
25%
41%
16%
46%
Manufacturers
Themselves
2003 2004
4%
5%
9%
16%
3%
5%
11%
14%
0% 10% 20% 30% 40% 50%
Consumer Groups
Food Stores
All
Government
Source: Food Marketing Institute
Consumer Conflict
Dissatisfaction with consumption and resultHelp me get back in balance!Help me make better choicespMake the foods I love betterGive me new options to improve my health
Food FadsLegislation and LawsuitsLifestyle Changes
Government Action
9/5/2008
7
When consumers give up rights of choice: legislation or lawsuit? Super Size Me (2004)
As a statement on the impacts of the modern food system, filmmaker Morgan Spurlock attempts to eat nothing but McDonald’s food for one month.
Local FoodOne Trend or Two?
Leading up to Local Food
The Natural Food MovementMake what we have betterOrganic production practices
Niche FarmingProducers taking advantage of “niche” organic marketsPizza Farms and ag tourism
Local Food MovementCommunity Supported AgFarm to School programs“Slow Food” gardens
Consumer Driven Food System
FoodRetailers
i
High Quality,Own Brand
Consumers
Producers
FoodManufacturers
Consumer Cooperatives
Local FoodSlow Food
CSAs
Organics, Natural Foods
Locavores Not Fully Understood
What is “local” anyway?“In state” and “nearby” very similar to consumers44 states with labeling programsWhole Foods’ foodshed within 250 milesWhole Foods foodshed within 250 miles
Socially motivated?Focused on distance to consumerSustainability of resources, ecology
Product focused?FreshnessAnti‐corporate images
9/5/2008
8
Kraft Foods Reinvented?
Retailers and Local Food
Closest competitors to Farmers Markets or CSAsVery adept at merchandising
ld h l d kCould enter the Local Food market as it maturesIssues for retailReliability of the sourceSeasonalityAttracting the locavore
