Reverberating Mergers in the Food Chain

Transcription

1

2 Reverberating Mergers in the Food Chain 77% Seed CR-2 66% Post-2014 Flour Mergers CR-4 64% Post-2015 Cereal Merger CR-4 85% FTC Blocked Sysco- USFoods merger to monopoly Wave of Supermark et mergers exceeds the late 1990s Corn Soybean Seeds Farms Flour Mill Cereal Factory Distribution Supermarket Home

3 National Market Share of Top Four Hog Packers 54.3% 55.0% 65.0% 64.0% 35.8% 36.6% 43.8% Source: USDA GIPSA

4 Number of Iowa Hogs Sold Double But Value Declines $5.8 $ $ $3.9 $ $ Hogs Sold (millions) Value of Hogs Sold (billions 2010 dollars) Source: USDA; Food & Water Watch The Cost of Food Monopolies

5 Number and Average Size of Iowa Hog Farms 49,000 5,068 38,600 34,000 3,852 18, ,454 11,300 8, Hog Farms Hogs sold per farm Source: USDA; Food & Water Watch The Cost of Food Monopolies

6

7

8 Maryland s Chicken Farmers Receive Small Share of Poultry Economic Value The value of poultry & egg sales from Maryland s Eastern Shore: nearly $1 billion in 2007 $848 Maryland E. Shore Poultry Value (2007 in millions) Companies pay farmers: $280 for every 1,000 birds Farmers earn about $31,000 annually after paying $70,000 to service their debt Poultry/Egg "Sales" $83 Total Farmer Broiler Receipts $25 Farmer Net Earnings

9 Maryland s Eastern Shore Farms Production Share of Selected Crops & Livestock Maryland s Eastern Shore went from diversified operations - with significant vegetable production to a few farms producing mostly broilers and feed 84.7% Source: USDA 61.0% 59.5% 50.3% 47.7% 32.0% 38.4% 17.5% 18.0% 2.0% 9.0% 2.0% 2.5% 6.4% 3.5% 2.2% Beef Cattle Hogs Dairy Broilers Vegetables Corn Wheat Orchards

10 Kraft Conglomerate 2011 Mayonnaise (33.9%) Meat Sauces (24.0%) Mustard (12.6%) Cottage Cheese (20.2%) Natural Cheese (17.3%) Processed Cheese (48.3%) Peanut Butter (2.4%) Shelf- Stable Dips (8.1%) Salad Dressing (20.5%) Pickles, Olives, Relish (7.5%) Kraft Foods Sour Cream (18.3%) Meat Substitute (14.7%) Breakfast Meat (14.8%) Dry Mac & Cheese (79.9%) Nuts (17.9%) Refrig./Fzn. Cakes & Pies (3.7%) Hispanic Food (1.7%) Coffee (14.0%) Fruit Drinks (20.7%) Hot Dogs (19.8%) Bacon (20.3%) Lunch Meat (34.8%) Source: Food & Water Watch, Grocery Goliaths

11 Kraft-Heinz Conglomerate 2014 Ketchup (63.2%) Mayonnaise (33.1%) Mustard (10.7%) Peanut Butter (2.1%) Frozen Appetizers (20.1%) Frz. Handheld Entrée (2.6%) Frozen Snacks (9.4%) Cottage Cheese (23.2%) Natural Cheese (17.9%) Processed Cheese (54.3%) Pickles, Olives, Relish (6.7%) Meat Sauces (77.9%) Kraft- Heinz Bacon (18.7%) Lunch Meat (34.8%) Dry Mac & Cheese (78.0%) Salad Dressing (17.6%) Spices (1.6%) Hot Dogs (20.2%) Meat Substitute (12.9%) Hispani c Food (4.5%) Cooking Sauce (9.9%) Pasta Sauce (10.6%) Fruit Drinks (13.7%) Coffee (13.5%) Nuts (26.1%) Source: Mintel

12 Supersizing the Supermarket Market Share of Four Largest Grocery Retailers 50.7% 53.1% 28.8% 34.0% 30.9% 34.0% 17.0% 20.8% Source: Univ. Minnesota; ERS USDA; USDA/DoJ; Census Bureau; Supermarket News; Food & Water Watch analysis. * post Abertsons-Safeway merger.

13

14 Top 4 Retailers Control Over 90% Grocery Sales 2004 Source: Food & Water Watch analysis of MetroMarket data.

15 Top 4 Retailers Control Over 90% Grocery Sales 2011 Source: Food & Water Watch analysis of MetroMarket data.

16 Top Four Market Share by Grocery Category 92.0% 87.9% 87.0% 86.7% 85.0% 80.8% 82.7% 79.9% 75.7% 78.9% 78.7% 76.7% 75.8% 74.2% 73.2% 68.7% 64.8% 68.1% 63.8% 67.5% 60.3% 60.6% Soda* Chocolate Performance Bars Breakfast Cereal Potato Chips Ketchup** Refrig. Yogurt* Peanut Butter Pasta Sauce Coffee Lunch Meat Source: F&WW Grocery Goliaths and preliminary update; * only 3 major firms, ** only 2 firms in 2014/5

17 Source: FWW Analysis

18

19 Source: FWW Analysis

20 Source: FWW Analysis

21

22 Concentrating Food Safety Risks 2011 Turkey Processing CR-4 = 55% 2010 Egg CR-4 = 34%

23

24 Retail index ( = 100) Consumer Cost and Farmer Share of Whole Foods % 35% 30% 25% % 15% 10% 5% Farmer Share Retail Cost Farm Share 0% Source: USDA National Agricultural Statistical Service; market basket of foods that are only primarily originated on farms like fruits, vegetables and milk.

25 Farmgate Milk and Retail Dairy Prices: 2009 Dairy Crisis 250 $ $11.70 $ Fresh Whole Milk CPI Cheese CPI Farmgate Milk ($/100 gal.) Source: USDA; Census Bureau.

26 Average Annual Change in Food Prices and Typical Wages Processed cheese Bologna Milk Hourly wages Broccoli Cheddar cheese Apples Peanut butter Bread Pasta Potatoes Ground beef Eggs -1.3% -0.6% -0.3% 0.4% 0.8% 0.8% 1.0% 1.1% 1.2% 1.5% 2.9% 3.2% 3.8% Source: Food & Water Watch analysis of Bureau of Labor Statistics data.

27 Food Industry Lobbying Expenditures on 2008 Farm Bill $17.0 (millions) $11.0 $9.9 $5.7 Commodities Food Manufacturers Seed, Agrochemical, Veterinary and Biotechnology Meatpackers, Poultry Cos. and Livestock Source: Food & Water Watch Cultivating Influence

28 We Can t Shop Our Way Out of the Foodopoly Accurate Information: GMO Labeling, Nutrition Facts Safety Standards: Meat Inspection, Food Safety Standards, Antibiotic Use, Imported Food Standards Fair Markets: Antitrust Enforcement, Farm Bill, Merger Approvals Building Alternatives: Farm to Institution, School Lunches

29 Food & Water Watch Foodopoly