9/5/2008
Our Food System
Farm Supply
Trends Toward Local Food
A Marketing Perspective
Farms
First Handler
Food Commodities
Food Products
Processor
Distributor
Retailer
Dr. John Park
Roy B. Davis Professor of Agricultural Cooperation
Breakdown of the Consumer Food Dollar
Food Expenditures as a Percent of Disposable Personal Income
30
$900
25
$700
20
$600
Percentt
Billion Dollars
s (Current)
$800
$500
$400
15
10
$300
Marketing Bill
$200
Food at Home
5
$100
Farm Value
$0
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
Source: USDA / ERS
What a Dollar Spent for Food
Paid for in 2000
2000
Food Away From Home
0
1930
1940
1950
1960
1970
1980
1990
2000
Source: USDA / ERS
What a Dollar Spent for Food
Paid for in 2000
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9/5/2008
Food Industry Stats, 2006
Food System Impacts
$511
Costs and Benefits to Society
$500
925
12.5
Restaurants
Supermarkets
34
Sales
(billions)
Locations
(thousands)
3.4
Employees
(millions)
Source: NRA, FMI
Societal Impacts
POSITIVE
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Obesity Rates
NEGATIVE
Low cost food
Greater wealth to dedicate to other uses
Greater convenience
Greater variety
Year‐round availability
Certain and reliable food supply
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Industrialized food production
Reliance on fossil fuels
Less variety
Increased rate of obesity
Increased rates of Type II Diabetes
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1985
BRFSS, 1986
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
Source: Behavior Risk Factor Surveillance System, CDC
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
Source: Behavior Risk Factor Surveillance System, CDC
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Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1987
BRFSS, 1988
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
Source: Behavior Risk Factor Surveillance System, CDC
10%–14%
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1989
BRFSS, 1990
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
Source: Behavior Risk Factor Surveillance System, CDC
10%–14%
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1991
BRFSS, 1992
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
Source: Behavior Risk Factor Surveillance System, CDC
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
Source: Behavior Risk Factor Surveillance System, CDC
3
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Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1993
BRFSS, 1994
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
Source: Behavior Risk Factor Surveillance System, CDC
10%–14%
15%–19%
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1995
BRFSS, 1996
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
Source: Behavior Risk Factor Surveillance System, CDC
10%–14%
15%–19%
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1997
BRFSS, 1998
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
20%–24%
Source: Behavior Risk Factor Surveillance System, CDC
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
20%–24%
Source: Behavior Risk Factor Surveillance System, CDC
4
9/5/2008
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 1999
BRFSS, 2000
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
20%–24%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
Source: Behavior Risk Factor Surveillance System, CDC
10%–14%
15%–19%
20%–24%
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 2001
BRFSS, 2002
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
20%–24%
25%–29%
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
Source: Behavior Risk Factor Surveillance System, CDC
10%–14%
15%–19%
20%–24%
25%–29%
Source: Behavior Risk Factor Surveillance System, CDC
Obesity Trends Among U.S. Adults
Obesity Trends Among U.S. Adults
BRFSS, 2003
BRFSS, 2004
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
20%–24%
25%–29%
Source: Behavior Risk Factor Surveillance System, CDC
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
20%–24%
25%–29%
Source: Behavior Risk Factor Surveillance System, CDC
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Obesity Trends Among U.S. Adults
BRFSS, 2005
Top Causes of Mortality in US, 2005
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Heart disease: 652,091
Cancer: 559,312
Stroke (cerebrovascular diseases): 143,579
Chronic lower respiratory diseases: 130,933
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l
d
Accidents (unintentional injuries): 117,809
Diabetes: 75,119
(*BMI ≥30, or ~ 30 lbs overweight for 5’ 4” person)
No Data
<10%
10%–14%
15%–19%
20%–24%
25%–29%
≥30%
Source: Behavior Risk Factor Surveillance System, CDC
How did we get here?
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2003
only about 10% of disposable income on food
Population
ƒ Families continue to feel the pressure of time with more dual‐income or single parent households
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Convenience
ƒ Demands on time have changed how we shop, what we eat, and how we cook
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Who do consumers rely on to help them eat healthy foods?
Wealth
ƒ US consumers are relatively wealthy, spending ƒ
Source: National Center for Health Statistics, CDC
Technology
ƒ The fast pace of technology has not only impacted consumer behavior and expectations, but also changed what is possible for manufacturers
2004
Themselves
41%
Manufacturers
16%
Government
14%
16%
46%
25%
11%
9%
All
5%
5%
Food Stores
3%
4%
Consumer Groups
0%
10%
20%
30%
40%
50%
Source: Food Marketing Institute
Consumer Conflict
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Government Action
Dissatisfaction with consumption and result
Help me get back in balance!
ƒ Help me make better choices
p
ƒ Make the foods I love better
ƒ Give me new options to improve my health
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Food Fads
Legislation and Lawsuits
Lifestyle Changes
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9/5/2008
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.
Leading up to Local Food
Local Food
One Trend or Two?
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The Natural Food Movement
ƒ Make what we have better
ƒ Organic production practices
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Niche Farming
ƒ Producers taking advantage of “niche” organic markets
ƒ Pizza Farms and ag tourism
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Local Food Movement
ƒ Community Supported Ag
ƒ Farm to School programs
ƒ “Slow Food” gardens
Consumer Driven Food System
High Quality,
Own Brand
Food
Retailers
Organics, i
Natural Foods
Locavores Not Fully Understood
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ƒ “In state” and “nearby” very similar to consumers
ƒ 44 states with labeling programs
ƒ Whole Foods
Whole Foods’ foodshed
foodshed within 250 miles
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Food
Manufacturers
Consumers
Local Food
Slow Food
CSAs
Consumer Cooperatives
Socially motivated?
ƒ Focused on distance to consumer
ƒ Sustainability of resources, ecology
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Producers
What is “local” anyway?
Product focused?
ƒ Freshness
ƒ Anti‐corporate images
7
9/5/2008
Kraft Foods Reinvented?
Retailers and Local Food
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Closest competitors to Farmers Markets or CSAs
Very adept at merchandising
Could enter the Local Food market as it ld
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d
k
matures
Issues for retail
ƒ Reliability of the source
ƒ Seasonality
ƒ Attracting the locavore
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