Ch. 2: Characteristics Of The Food Industry Flashcards
On the basis of dollar sales, how big is the food industry?
They bring in more than $500 billion a year.
What percent of the working population in the US does the food industry employ?
25%
What percent of total consumer spending in the US goes toward food? What is this compared to others?
17% the lowest in the world.
The abundance of cheap food in the US is a result of increased efficiency of what 2 things? What are the contributing factors?
Production and processing
- Fertilizers
- Insecticides
- Farm mechanization
- Herbicides (for weeds)
- Animal and plant genetic improvements
In 1940, one farmer produced food for how many people?
In 1960?
Today?
12 people
28 people
Up to 150 people
What are the simple divisions of food industry functions? (3 segments)
- Collecting raw materials
- Processing
- Distribution to supermarkets
How does the US food dollar relate to meat, dairy, cereal, fruits/vegetables, and eggs?
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)
How much milk is produced per year? What percent is consumed in the form of which it’s produced?
190 billion pounds a year.
32%
What else is milk used to produce and what are the percents?
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%
What percent of the US fish harvest goes toward human consumption? What percent spoils? What does the spoiled fish go towards?
50%- human consumption.
50%- spoils and goes toward animal and pet foods or waste.
What is fish meal?
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.
What is fish flour?
Cleaned up fish meal with the fat removed.
What has the potential for supplying protein to our starving world population?
Fish flour
What are some major food products we import?
Coffee Tea Cocoa Sugar Spices Fish
What is the average per capita consumption of food consumed in the US?
1450 pounds per year
“A pint is pound __ ___ _____ ______.”
In the world around
Today, what percent of our US food bill represents food eaten away from home?
46% and climbing
What are allied food industries? What are some examples?
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.
Metal companies have studied what for improving cans?
Corrosive effects
Interactions of different food with the metal.
Light weighing cans
Tinted glass does what?
Screens out UV rays that protect light sensitive foods
Plastic films do what?
Provide max moisture
Oxygen barriers
Resistance to heating and freezing
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?
Polymers
Chemical manufacturers provide what?
Acidulants Preservatives Enzymes Stabilizers Other chemicals
*All must be approved by the FDA or other regulatory agencies
Who are often the prime innovators of new food processing methods and systems?
Food machinery and equipment manufacturers.
The food industry is having greater dependencies on outside consultants, testing labs, and legal expertise. This has led to what?
More of these people are becoming involved in the food production process
The largest McDonald’s is where?
Moscow, Russia
Agricultural imports to the US amounted to what in 1991 and made up what percent of all imports?
$22 billion dollars
10%
Food exports from the US amounted to what in 1991?
$37 billion
This has grown due largely to the increased world demand of cereal grains and soybeans
The US is the worlds largest what?
Food exporter in cereal grains and soybeans.
What are some companies with extensive overseas operations?
Kraft-general foods CPC international H.J. Heinz Borden Campbell soup Nabisco brands Coca-Cola PepsiCo Beatrice companies Ralston Purina General Mills
What can be expected to increase the international trade in food items?
The recent trend to decrease trade tariffs on many items including food
When companies go into a different country, what are some problems they run into?
Modify food to suit local taste
Available food ingredients differ
Local food laws may prohibit use of food acidifiers, preservatives, or colors
The food industry is often said to be a ______ industry.
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.
Changes in food use reflect what? Such as…
Demographic changes such as the increasing number of older Americans, working women, and single-member households
Changes in food availability reflect what?
The supply of ingredients and non-food components. Like weather, political barriers, and changing world demand.
Advances in what 3 things often change eating habits whether the benefits are perceived or real?
Nutrition, health, food safety
Demographic shifts what 4 things?
Availability of ingredients and components
Increase in daily consumption of calories
Increase in fruit/vegetable consumption
Decrease in red meant consumption
Food supply is also altered by ___ ___ and ___ ___.
Government regulations
Technical innovations
What often makes the difference between success or failure?
Price per kilogram or per package, which are carefully controlled
The food industry is a low-___ and high ___ industry.
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.
