Setting the TableTransition from a vibrant rural landscape of small farms & ranches3 Agricultural “Revolutions”Slide 4Slide 5Slide 6Eat In or Out?Armour Perfectly Seasoned PorkConAgra’s Healthy ChoiceAgricultural IndustrializationSlide 11Slide 12Consequences for the Meat & Poultry IndustrySlide 14Slide 15CAFOsFeed People, Not Cows!What’s for Dinner?US Per Capita Consumption (lbs.)Slide 20Setting the TableSetting the TableCh. 1, Slaughterhouse BluesCh. 1, Slaughterhouse BluesDonald Stull & Michael BroadwayDonald Stull & Michael BroadwayTransition from a vibrant Transition from a vibrant rural landscape of small rural landscape of small farms & ranchesfarms & ranches•100 years ago, a typical woman in the US spent 44 hours per week preparing meals•By the 1950s, they spent less than 20 hours•1990s, even less•Food companies responded by processing foods into ready-to-eat meals ConAgra3 Agricultural 3 Agricultural “Revolutions”“Revolutions”•1. Southwest Asia 10,000 YA1. Southwest Asia 10,000 YA–Development of domesticated plants Development of domesticated plants & animals& animals–Fed more people on less landFed more people on less land–Permitted formation of permanent Permitted formation of permanent settlements & urban centerssettlements & urban centers2. Industrialization in 2. Industrialization in Western Europe in late 18Western Europe in late 18thth C.C.–22ndnd agricultural revolution agricultural revolution replaced subsistence replaced subsistence productionproduction–Creation of surplus & profitCreation of surplus & profit–Agriculture became tied to Agriculture became tied to industryindustry3. Agricultural industrialization 3. Agricultural industrialization in the US at the beginning of the in the US at the beginning of the 2020thth C C–Creation of economies of scaleCreation of economies of scale–Acquisition of inputs (chemicals, Acquisition of inputs (chemicals, machinery) from non-agricultural machinery) from non-agricultural sectorssectors–Substitution of capital for labor Substitution of capital for labor (via mechanization) (via mechanization)–Adding economic value to Adding economic value to agricultural products through agricultural products through processing & packagingprocessing & packaging•1980 farmers received 31%31% of the money Americans spent on food•1999 farmers received 19%19%–Processors, wholesalers, distributors, retailers absorb the rest•Vertical Integration: Is most evident in the poultry industry–Tyson controls each step of the production process, from egg to boneless chicken breast–Supplies Chicken McNuggets to McDonaldsEat In or Out?Eat In or Out?•Americans eat fewer meals at home & spend less time preparing them•1965 30% of food dollars were spent eating out•1999 48% were spent eating outThe microwave – in 90% of homes – provided a technological fix for those without time or inclination to cookArmour Perfectly Armour Perfectly Seasoned PorkSeasoned Pork•“Several different cuts that are perfectly seasoned in a variety of succulent flavors. They are sealed in convenient packages that can be used for future use. When you are ready for a perfect meal just empty the contents into a baking pan place in the oven and your meal is ready in minutes…and you don’t even have to get your hands dirty!”ConAgra’s Healthy ConAgra’s Healthy ChoiceChoice•20 different ready-to-eat meals…“that are convenient & flavorful, leaving you time to do the things you want to do…in only 8-12 minutes you’re sitting down to a full spread of fulfilling entrees”•Supplies french fries to McDonaldsAgricultural Agricultural IndustrializationIndustrialization1. IntensificationIntensification: Farmers increase purchase of nonfarm inputs–Production costs increase faster than prices received so farmers increase output–Government subsidies guarantee prices–Subsidies disrupt agriculture in poor countries2. ConcentrationConcentration: Fewer but larger units produce a larger share of commodities–Producing calves on a ranch with 500 cows costs 50% less than one with 50 cows–Or a farm with 3000 hogs costs 1/3 less than one with 500 hogs–This favors factory farms3. SpecializationSpecialization: Farmers focus on a narrower range of commodities–Concentration in certain regions:–Cattle in the high plains grain belt–Pork production in the corn belt–Poultry production in the South (mild climate)Consequences for the Meat Consequences for the Meat & Poultry Industry& Poultry Industry•US poultry industry pioneered vertical integrationvertical integration & became a model for the beef & pork industry–IntegratorsIntegrators (processors) own the animals & contract growers to raise–Custom-built feedlots, hog barns, chicken houses–Tyson contracts 7600 farms in 16 states–“Feed-conversion ratioFeed-conversion ratio” = birds grow to slaughter weight with the least feed possible•IBP, ConAgra, Excel, Farmland own 81% of US beef slaughter•Hogs & cattle used to be shipped to urban centers (Chicago, etc.)•1960 IBP (now owned by Tyson) moved to Denison, Iowa near feed supplies & created disassembly lines•1967 IBP in Nebraska introduced boxed beef, rather than ship whole carcasses–Fabricated into smaller cuts, vacuum packed•ConAgra bought Armour•Cargill bought Excel•Beef production shifted to High Plains, but lacked labor–Recruited immigrant labor•Hog production moved from Midwest to North Carolina & Oklahoma in 1980s•Poultry plants began to replace African-American labor with Latinos in Southern statesCAFOsCAFOs•Concentrated animal feeding operations produce massive amounts of manure–Nitrogen & phosphorus enter water systemsFeed People, Not Cows!Feed People, Not Cows!•As countries become wealthier, people eat more animal protein•Farmers change from food production to feed productionWhat’s for Dinner?What’s for Dinner?•Beef consumption peaked in the 1970s then reduced due to medical warnings about cholesterol•Books such as Rifkin’s Beyond Beef also placed beef production under scrutiny•There has been an explosive increase in chicken consumptionUS Per Capita Consumption US Per Capita Consumption (lbs.)(lbs.)YearYearBeefBeefPorkPorkChickenChicken19301930 48.6