Overview of the Food System

1. Overview of the Food System AG BM 102

2. Overview of the food system • What is the food system? • Location of production • Location of consumption • Paths to the consumer

3. The Food System – elements • Products and services • Value added • Information

4. The Food System Information

5. Location of production • Depends on product • Agriculture is increasingly specialized • Individual farms specialize • Regions specialize • Key factors: • Where the resources are • Where the consumers are

6. Specialization • Agriculture is specialized regionally • Allows for more infrastructure • Equipment dealers • Processors • Matches product w/ growing conditions • Requires more transportation

22. Main Cheese Producing States 2004 Million pounds 0 to 600 600 to 750 1500 to 2000 2000 to 2400

23. Million pounds 0 to 20 20 to 50 50 to 100 300 to 350 350 to 400 Main Butter Producing States 2004

24. Main Ice Cream Producing States 2004 Million gallons 0 to 10 10 to 30 30 to 50 50 to 95 95 to 130 130 to 140

25. US State Populations, 2011

26. Types of food market basket share

27. Paths to the consumer • Food consumed at home and food away from home • Food away from home: • 33% of food consumed • 46% of the money spent on food • Farmer’s share of the money: • 25% of food at home • 16% of food away from home

28. Share depends on productAll Food Farm $123 bil. Marketing Bill $538 bil

29. Farm Share

30. Marketing Costs

31. And the share of marketing costs is rising

32. Concluding Comments • Marketing makes the food system work • Regional specialization requires lots of transportation • Diverse consumer needs require services (added value) • Lots of services – all have to be paid for • Each product has its own story