Food Marketing Flashcards
(48 cards)
Food marketing influenced by many factors (6)
• Demographics
• Consumption patterns
• Food outlets
• Branding issues
• International food markets
• Government programs
Birth rates developed vs developing countries
Lower in developed
Examples of demographic influences on marketing
Products that target affluent/wealthy people
2 income households buy differently = increased demand for prepared foods
Trend in pork consumption
Increased dramatically
Due to Asian immigrants increasing demand
USDA agricultural projections to 2029: U.S. red meat and pork production
Pork: 25 billion pounds
Beef: 30 billion pounds
3 Sources of prepared foods: food outlets
Supermarkets
Convenience stores
Fast food restaurants
Issues in agricultural marketing
• Farmers have VERY little control over the market: Increase production→ prices drop (reverse is also true)
• Raw farm product is a small fraction of the retail price (~5% of the price of a loaf of bread gets to the farmer)
• Farm products are seen as being identical: Little/no bargaining power with buyers
• U.S. food prices are considered too low
Counter actions to U.S. food prices being considered too low (3)
• Farm subsidies
• Government buying
• Quotas on production of certain commodities
Health halo effect
-Overestimating healthfulness of an item based on a single claim
- “Low fat”, “Gluten-free” , “Organic”
Meaning of “organic” / definition
A raw or processed agricultural product sold, labeled, or represented as “organic” must contain (by weight or fluid volume, excluding water and salt) not less than 95 percent organically produced raw or processed agricultural products.”
4 excluded methods that organic products don’t use
• Genetic engineering
• Ionizing radiation
• Synthetic pesticides
• Chemical fertilizers
Which agency certifies organic products
USDA
Organic livestock standards (5)
• Managed organically from last 3rd of gestation
(mammals) or 2nd day of life (poultry)
• Allowed year-round access to outdoors
• Raised on certified organic land and fed 100%
organic feed
• No use of drugs to prevent disease / parasites
• Treatment in case of illness allowed but meat, milk,
or eggs can’t be marketed as organic
Enforcement of organic products
Public private partnership between USDA and NOP (national organic program)
Inspection of farms
Investigate alleged violations
Sample for prohibited substances
Is organic healthier, safer and more environmentally friendly: evidence
Healthier —> yes
Safer —> 30% reduced pesticide residues, less Ab resistant bacteria (E coil) in chicken and pork
Environment —> less pollution, contributes to biodiversity, soil building practices BUT may lose efficiency
Is organic better: bottom line
Positively impact food safety and environment quality
Most likely used as marketing strategy
Largest consumer of egg shells in U.S
McDonald’s
Food stamp legislation is covered under what bill
Farm bill
Supplemental nutrition assistance program (SNAP): 2 goals
Help low income households
Increase consumption of agricultural surplus products
What did farm bill do for SNAP retailers
Expanded retailers
Incentives for purchase of fresh fruits/veggies
Food safety challenges (3)
• Increasing fraction of U.S. food is imported
• Consumers are eating more raw foods
• Increasing fraction of Americans are immunocompromised
Food recalls are coordinated by what 4 agencies
FDA, USDA, CDC, states
How many meat and poultry plants are there in U.S.
2,700
how many food establishments/restaurants are there in U.S.
660,000
