Ch. 2: Characteristics Of The Food Industry

Question 0

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

Answer 0

They bring in more than $500 billion a year.

Question 1

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

Answer 1

25%

Question 2

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

Answer 2

17% the lowest in the world.

Question 3

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

Answer 3

Production and processing

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

Question 4

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

Answer 4

12 people
28 people
Up to 150 people

Question 5

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

Answer 5

1. Collecting raw materials
2. Processing
3. Distribution to supermarkets

Question 6

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

Answer 6

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)

Question 7

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

Answer 7

190 billion pounds a year.

32%

Question 8

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

Answer 8

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%

Question 9

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

Answer 9

50%- human consumption.

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

Question 10

What is fish meal?

Answer 10

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.

Question 11

What is fish flour?

Answer 11

Cleaned up fish meal with the fat removed.

Question 12

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

Answer 12

Fish flour

Question 13

What are some major food products we import?

Answer 13

Coffee
Tea
Cocoa
Sugar
Spices
Fish

Question 14

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

Answer 14

1450 pounds per year

Question 15

“A pint is pound __ ___ _____ ______.”

Answer 15

In the world around

Question 16

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

Answer 16

46% and climbing

Question 17

What are allied food industries? What are some examples?

Answer 17

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.

Question 18

Metal companies have studied what for improving cans?

Answer 18

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

Question 19

Tinted glass does what?

Answer 19

Screens out UV rays that protect light sensitive foods

Question 20

Plastic films do what?

Answer 20

Provide max moisture
Oxygen barriers
Resistance to heating and freezing

Question 21

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?

Answer 21

Polymers

Question 22

Chemical manufacturers provide what?

Answer 22

Acidulants
Preservatives 
Enzymes 
Stabilizers
Other chemicals

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

Question 23

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

Answer 23

Food machinery and equipment manufacturers.

Question 24

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

Answer 24

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

Question 25

The largest McDonald's is where?

Answer 25

Moscow, Russia

Question 26

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

Answer 26

$22 billion dollars | 10%

Question 27

Food exports from the US amounted to what in 1991?

Answer 27

$37 billion | This has grown due largely to the increased world demand of cereal grains and soybeans

Question 28

The US is the worlds largest what?

Answer 28

Food exporter in cereal grains and soybeans.

Question 29

What are some companies with extensive overseas operations?

Answer 29

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

Question 30

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

Answer 30

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

Question 31

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

Answer 31

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

Question 32

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

Answer 32

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.

Question 33

Changes in food use reflect what? Such as...

Answer 33

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

Question 34

Changes in food availability reflect what?

Answer 34

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

Question 35

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

Answer 35

Nutrition, health, food safety

Question 36

Demographic shifts what 4 things?

Answer 36

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

Question 37

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

Answer 37

Government regulations | Technical innovations

Question 38

What often makes the difference between success or failure?

Answer 38

Price per kilogram or per package, which are carefully controlled

Question 39

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

Answer 39

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.