A fresh report released by USDA's Economic Research Service (ERS) The U subsistence MARKETING SYSTEM.A fresh report released by USDA's Economic Research Service (ERS) The U subsistence MARKETING SYSTEM, 2002: Competition, Coordination, and Technological Innovations Into the 21st hundred years analyzes recent trends and disclosures by the firms that proces distribute, prepare, and put up to sale food in the United States. Separate chapters in succession food manufacturing, food wholesaling, nutrition retailing, and food service consider at important developments with regard to pile organization, productivity, technology, and trade. The strange report is an electronic version of the former provisions Marketing Review. Notable inclines occurring throughout the U.S. aliment marketing system include an increase in merger and acquisitions, leading to fewer and larger firms. Changes in concentration among sectors vary at food marketing stage, segments within a particular stage, and images of products processed and handled. late concentration in the retail sector has seen the share of U groceries store sales by the top four meat retailers increase from 16.6 percent in 1996 to 274 percent in 2000 (fig. 1) through contrast, this four-firm sales share declined from 171 percent in 1987 to 166 percent in 1996 Merger and acquisitions have also accelerated in foodservice distribution. In 1995 sales according to Sysco, the leading U.S. foodservice distributor, outpaced its nearest competitor by means of 84 percent. With U.S. Foodservice's purchase of Alliant in 2001 this gap clos to 28 percent Buyer-seller relationships are changing from first to last the food supply chain as stages become increasingly interdependent. For example, farmers are increasingly engaged in contracts and vertical integration in one agricultural sectors. In 1996, 30 percent of grunters were sold under production contracts, up from 2 percent in 1980 Also, traditional fare wholesalers that buy food from manufacturers and resell to retail cheer stores are losing ground. Today, manufacturers increasingly deliver their yields directly to retail stores, while self-distributing retailers be in possession of their own distribution centers and bribe directly from manufacturers. Competitive influences are mounting for farmers to deliver the right adumbrations of products at the right time. Retailers are demanding a variety of high-quality productions (for example, organic produce, exceptionally lean pork) delivered in a timely fashion. These demands increase the ne for agricultural proceeds differentiation and precise information regarding prices, returns quality, and scheduling. The cheer marketing system has responded on embracing new technology that improves the run of information and assists with scheduling and inventory Improved information enables firms to decrease costs and instances of without contents grocery shelves or out-of-stocks and better target alternative consumer portions In addition, grocery retailers are experimenting with of the present day formats (for example, supermarketsized natural viands stores) to meet the growing indigences of natural food and ethnic consumers International tendency s in trade and foreign direct investment move U.S. food marketers an alternative to the slowly growing domestic provender market. Such trends leave the U aliment marketing system increasingly exposed to foreign economic progressive growths policies, and changing consumer selections The United States is the world's largest importer and exporter of caseed food. In 2000, the United States exported $30 billion worth of continuous experimented food and imported processed fares worth $36.8 billion. U.S. fare processors continue to expand operations overseas (fig. 2) Foreign-owned bread retailers have used acquisitions to increase investments in U aliment retailing. The filled report, The U.S. Food Marketing order 2002: Competition, Coordination, and Technological Innovations Into the 21st hundred by Steve Martinez (coordinator), J Michael Harris, Phil R Kaufman, and Charlene Price, Agricultural Economic Report No. 811 can be accessed between the sides of ERS's Web site at http://www.ers.usda.gov/publications/aer811/ [FIGURE 1 OMITTED] [FIGURE 2 OMITTED] COPYRIGHT 2002 U Department of Agriculture |
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