Ch. 2: Characteristics Of The Food Industry Flashcards

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0
Q

On the basis of dollar sales, how big is the food industry?

A

They bring in more than $500 billion a year.

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1
Q

What percent of the working population in the US does the food industry employ?

A

25%

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2
Q

What percent of total consumer spending in the US goes toward food? What is this compared to others?

A

17% the lowest in the world.

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3
Q

The abundance of cheap food in the US is a result of increased efficiency of what 2 things? What are the contributing factors?

A

Production and processing

  1. Fertilizers
  2. Insecticides
  3. Farm mechanization
  4. Herbicides (for weeds)
  5. Animal and plant genetic improvements
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4
Q

In 1940, one farmer produced food for how many people?
In 1960?
Today?

A

12 people
28 people
Up to 150 people

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5
Q

What are the simple divisions of food industry functions? (3 segments)

A
  1. Collecting raw materials
  2. Processing
  3. Distribution to supermarkets
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6
Q

How does the US food dollar relate to meat, dairy, cereal, fruits/vegetables, and eggs?

A

Meat- 25 cents
Dairy- 12 cents
Cereal- 15 cents (nutritionally the worst bargain of the bunch)
Fruits/Vegetables- 16 cents
Eggs- 3 cents (nutritionally the best bargain of the bunch)

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7
Q

How much milk is produced per year? What percent is consumed in the form of which it’s produced?

A

190 billion pounds a year.

32%

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8
Q

What else is milk used to produce and what are the percents?

A

Cheese- 38% (10 pounds of milk for 1 pound of cheddar)
Butter- 13% ( 22 pounds of milk for 1 pound of butter)
Frozen desserts (ice cream)- 9%
Concentrated milks (condensed, sweetened condensed, evaporated, milk powder)- 1%
Farm where it’s produced- 1%
Miscellaneous (lactose- milk sugar, pills sent to pharmacy, casein- glue)- 7%

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9
Q

What percent of the US fish harvest goes toward human consumption? What percent spoils? What does the spoiled fish go towards?

A

50%- human consumption.

50%- spoils and goes toward animal and pet foods or waste.

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10
Q

What is fish meal?

A

Formally a by product (spoiled fish that goes toward cat food). It’s high in protein and has excellent potential in the form of fish flour.

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11
Q

What is fish flour?

A

Cleaned up fish meal with the fat removed.

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12
Q

What has the potential for supplying protein to our starving world population?

A

Fish flour

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13
Q

What are some major food products we import?

A
Coffee
Tea
Cocoa
Sugar
Spices
Fish
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14
Q

What is the average per capita consumption of food consumed in the US?

A

1450 pounds per year

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15
Q

“A pint is pound __ ___ _____ ______.”

A

In the world around

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16
Q

Today, what percent of our US food bill represents food eaten away from home?

A

46% and climbing

17
Q

What are allied food industries? What are some examples?

A

Companies that produce non-food components that are essential to the success of the food industry.
Ex: food packaging materials, food colors, food flavors, homogenizer, pasteurizer.

18
Q

Metal companies have studied what for improving cans?

A

Corrosive effects
Interactions of different food with the metal.
Light weighing cans

19
Q

Tinted glass does what?

A

Screens out UV rays that protect light sensitive foods

20
Q

Plastic films do what?

A

Provide max moisture
Oxygen barriers
Resistance to heating and freezing

21
Q

Recent advancement in what have led to the development of new plastic packages for food which will withstand microwave temperatures or pressure during retorting foods in canning?

A

Polymers

22
Q

Chemical manufacturers provide what?

A
Acidulants
Preservatives 
Enzymes 
Stabilizers
Other chemicals

*All must be approved by the FDA or other regulatory agencies

23
Q

Who are often the prime innovators of new food processing methods and systems?

A

Food machinery and equipment manufacturers.

24
Q

The food industry is having greater dependencies on outside consultants, testing labs, and legal expertise. This has led to what?

A

More of these people are becoming involved in the food production process

25
Q

The largest McDonald’s is where?

A

Moscow, Russia

26
Q

Agricultural imports to the US amounted to what in 1991 and made up what percent of all imports?

A

$22 billion dollars

10%

27
Q

Food exports from the US amounted to what in 1991?

A

$37 billion

This has grown due largely to the increased world demand of cereal grains and soybeans

28
Q

The US is the worlds largest what?

A

Food exporter in cereal grains and soybeans.

29
Q

What are some companies with extensive overseas operations?

A
Kraft-general foods 
CPC international
H.J. Heinz
Borden
Campbell soup
Nabisco brands 
Coca-Cola
PepsiCo
Beatrice companies
Ralston Purina
General Mills
30
Q

What can be expected to increase the international trade in food items?

A

The recent trend to decrease trade tariffs on many items including food

31
Q

When companies go into a different country, what are some problems they run into?

A

Modify food to suit local taste
Available food ingredients differ
Local food laws may prohibit use of food acidifiers, preservatives, or colors

32
Q

The food industry is often said to be a ______ industry.

A

Stable. Resistant to the effects of recession. Per capita consumption has stayed around 1450 lbs a year. However, the kinds of foods consumed are continually changing making it highly dynamic and competitive.

33
Q

Changes in food use reflect what? Such as…

A

Demographic changes such as the increasing number of older Americans, working women, and single-member households

34
Q

Changes in food availability reflect what?

A

The supply of ingredients and non-food components. Like weather, political barriers, and changing world demand.

35
Q

Advances in what 3 things often change eating habits whether the benefits are perceived or real?

A

Nutrition, health, food safety

36
Q

Demographic shifts what 4 things?

A

Availability of ingredients and components
Increase in daily consumption of calories
Increase in fruit/vegetable consumption
Decrease in red meant consumption

37
Q

Food supply is also altered by ___ ___ and ___ ___.

A

Government regulations

Technical innovations

38
Q

What often makes the difference between success or failure?

A

Price per kilogram or per package, which are carefully controlled

39
Q

The food industry is a low-___ and high ___ industry.

A

Low markup and high volume. Losses of fractions of a cent per unit along the way can mean losses of hundreds of thousands of dollars per year.