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
National Market Share of Top Four Hog Packers 54.3% 55.0% 65.0% 64.0% 35.8% 36.6% 43.8% 1982 1987 1992 1997 2002 2007 2011 Source: USDA GIPSA
Number of Iowa Hogs Sold Double But Value Declines $5.8 $4.8 41.2 47.3 $5.1 23.8 23.5 $3.9 $4.1 26.8 27.5 $3.7 1982 1987 1992 1997 2002 2007 Hogs Sold (millions) Value of Hogs Sold (billions 2010 dollars) Source: USDA; Food & Water Watch The Cost of Food Monopolies
Number and Average Size of Iowa Hog Farms 49,000 5,068 38,600 34,000 3,852 18,400 470 584 747 1,454 11,300 8,800 1982 1987 1992 1997 2002 2007 Hog Farms Hogs sold per farm Source: USDA; Food & Water Watch The Cost of Food Monopolies
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
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 1940 2007
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
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
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% 1994 1997 1998 1999 2002 2004 2009 2015 Source: Univ. Minnesota; ERS USDA; USDA/DoJ; Census Bureau; Supermarket News; Food & Water Watch analysis. * post Abertsons-Safeway merger.
Top 4 Retailers Control Over 90% Grocery Sales 2004 Source: Food & Water Watch analysis of MetroMarket data.
Top 4 Retailers Control Over 90% Grocery Sales 2011 Source: Food & Water Watch analysis of MetroMarket data.
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 2010-2011 2014-15 Source: F&WW Grocery Goliaths and preliminary update; * only 3 major firms, ** only 2 firms in 2014/5
Source: FWW Analysis
Source: FWW Analysis
Source: FWW Analysis
Concentrating Food Safety Risks 2011 Turkey Processing CR-4 = 55% 2010 Egg CR-4 = 34%
Retail index (1982-84 = 100) Consumer Cost and Farmer Share of Whole Foods 250 200 150 40% 35% 30% 25% 100 50 20% 15% 10% 5% Farmer Share 0 1984 1989 1994 1999 2004 2009 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.
Farmgate Milk and Retail Dairy Prices: 2009 Dairy Crisis 250 $21.90 200 150 100 $11.70 $11.80 50 0 Fresh Whole Milk CPI Cheese CPI Farmgate Milk ($/100 gal.) Source: USDA; Census Bureau.
Average Annual Change in Food Prices and Typical Wages 2000-2012 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.
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
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
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