question

Firms that provide inputs to the farmers.

answer

Aggie Input Suppliers Ex) Monsanto

question

Firms who produce RAW food and Aggie commodities

answer

Producers Ex) Iowa Corn Farmer

question

Firms who buy RAW COMMODITIES from producers

answer

Assemblers Ex) Archer Daniels Midland (ADM) Bunge

question

Firms who buy raw Aggie commodities and PROCESSES THEM INTO FOOD INGREDIENTS

answer

Initial Processors Ex) ADM Bunge *Cargill***

question

Manufacturer that buys ingredients and manufactures them into food products

answer

Food Manufacturer Ex) Kellogg's Coca-Cola

question

Firm engaged in distributing food products

answer

Wholesalers TWO TYPES 1. Institutional Ex) GFS 2. Grocery Ex) SpartanNash

question

Firms from whom consumers buy food

answer

Retailers Ex) Kroger Meijer's

question

People who eat food

answer

Consumers Ex) Me

question

Time Value Added

answer

Value that allows production & consumption at different times ( by storage )

question

Place Value Added

answer

Value by transportation to the location of the next player

question

Form Value Added

answer

Changing the form of the product

question

Possession Value Added

answer

Value by facilitating exchange between buyers and sellers

question

Food Bill

answer

Value of all total food & alcohol Trend: Increasing

question

Food Dollar

answer

Total annual market value for all purchases of DOMESTICALLY produced food (Two types: value by Aggie input supplier & value by farmer (farm share))

question

Food dollar is Value Added ____ the domestic farm gate

answer

After

question

Food Marketing Bill

answer

Total dollar expenditures going to Aggie & food marketing firms to pay for all marketing PAST THE DOMESTIC FARMGATE Trend: Increasing

question

Most food products go through ___ changes of possessions

answer

5-7

question

On average, how far does food travel?

answer

1000 miles

question

What are the types of Value Added? What are they each?

answer

Time - value by storage Form - value by changing Place - value by transportation Possession - value by facilitating exchange

question

What is the food bill?

answer

Value of all total food and alcohol expenditures in a given year

question

What is the trend of the food bill and what is its most recent number?

answer

INCREASING $ 1.6T

question

The average American spent how much in the food bill?

answer

$5,000 including alcohol, 4,500 without

question

What is the food Dollar?

answer

Total annual market value for all purchases of DOMESTICALLY produced food.

question

What is the food Dollar split into?

answer

Farm share - Value by farmer and Aggie input supplier Food marketing bill - Value Added by firms after the domestic farm gate

question

What is the food marketing bill? It's trend?

answer

Total dollar expenditures going to Aggie and food marketing firms to pay for all marketing past the domestic farmgate. INCREASING

question

Since 1995 the farm share has been about what percent? New numbers estimate it at what????

answer

20%, NOW 15-20%

question

What is the farm share for food consumed away from home? Why?

answer

5%. Marketing share has been increasing a lot faster than farm share.

question

What costs go into the FMB?

answer

Labor Packaging Transportation Energy

question

What is the average distance food travels?

answer

1000 miles

question

More processed food do what to the farm share?

answer

Decrease it

question

Seasonality costs do what to the farm share?

answer

Decrease it

question

Transportation costs do what to the farm share?

answer

Decrease it

question

Bulky perishable items have what kind of farm share?

answer

Large

question

Food Dollar Expenditures

answer

Total annual market value for all purchases of DOMESTICALLY PRODUCED GOODS

question

Food consumption SHARE trends have been _____ but have been relatively _____ since 2000

answer

Declining but relatively stable since 2000

question

What is the trend for how much we spend on food?

answer

Upwards trend $1.63T

question

What are the reasons of why we spend more on food?

answer

Population increase -- High food prices due to labor and energy -- Preferences of new food products and marketing services

question

The average American eats how many calories per day?

answer

3500

question

Swing in the farm price lead to small impacts on food price. Why?

answer

The long chain is not affected by a small link.

question

What is the trend in food preferences

answer

More processing More marketing 1/2 of food away from home 1/3 consumed away from home = Value Added trend

question

Food expenditures from population growth "mature" market means what?

answer

More mature consumers, Rising income, And more diversity.

question

Will catering to the baby-boomer generation change the US spending on food? Why?

answer

YES because upgrades in diets and reduction in the percentage spent on food

question

What are functional foods

answer

Foods to provide medical benefits beyond traditional nutritional benefits ex) Vitamin D Milk

question

Milk has been trending way ____ While cheese has been trending way ____

answer

Down Up

question

Name the top 5 countries in soil available for food production

answer

1. 🇺🇸 2. 🇮🇳 3. 🇷🇺 4. 🇨🇳 5. 🇧🇷

question

Name the impacts of geographical factors

answer

-Increases place value - production, processors concentrated in production region -wholesalers concentrated in consumption region

question

Name the impacts of biological factors

answer

-Production Lags: the length of time which the decision to produce occurs until the production reaches the market: chicken 5-7 days, nuts 5-7 years -perishable -quality variation -risks

question

Name the impacts of biological factors

answer

Decisions must be made on expected prices and expected yields

question

Geological factors increase what type of value added?

answer

Place

question

Biological factors increase what type of value added?

answer

Time value Form value

question

Name the impacts of capital factors

answer

(Requires a high degree of asset specificity) -lag in adjustments -influenced heavily by macroeconomics such as inflation

question

What is the impact that tech provides?

answer

Firms face the constant pressure of continually reducing costs and continually adopting new tech

question

Seasonality of supply

answer

Batch production

question

Seasonality of demand

answer

Tastes and preferences throughout year

question

What do seasonality factors impact?

answer

Storage costs Handling costs

question

What percentage of US land is used for food and fiber production?

answer

50% 20% in crops 25% in rangeland 5% other

question

What are the impacts of increased productivity?

answer

-Changes in farm structure -Increases specialization -increased globalization -tighter coordination -increased concentration

question

What percent of farms are family owned?

answer

97-98%

question

Large scale farms make more than $1B dollars. True or False?

answer

False. They make more than 1 million... not billion.

question

What percentage of farms are made up by small farms?

answer

90%

question

Small farms own more than ____ of all farm assets (ex. Buildings)

answer

1/2

question

True or false, small farms make up less than 25% of Aggie output

answer

False. 26%.

question

Mid scale and large scale farms make up what percent of all farms?

answer

8%

question

What percent of total value of production does mid scale and large scale farms make?

answer

60%

question

Non family farms make up almost ___ percent of all farms. They make up ____ percent of the total value of farm production

answer

3% of farms 15% of farm value

question

What is asset specificity?

answer

Assets that can only be used for farm/food production or processing

question

Mid-scale and large scale farms account for what percentage of farm production?

answer

75%

question

What is the current trend in farms?

answer

Increasing size

question

Name the increased impacts in farm structure

answer

Increases Specialiazation - Increased Globalization - Increased Market coordination - Increased concentration

question

What percent of exports are Aggie related in the USA?

answer

10%

question

Nearly what percent of USA agriculture is exported?

answer

nearly 25%

question

The USA is the leader in exports and second in imports. T or F?

answer

False! We are #1 in both.

question

What is the current shift in market coordination

answer

Shifting away from production of commodities towards food products

question

More coordination in the market does what?

answer

Make players more independent

question

What is the difference between market concentration and geographic concentration?

answer

Market: smaller number of firms or players in the industry Geographic: production and allied industry located close to one another

question

The Michigan Automobile industry is an example of what?

answer

Geographic concentration

question

What is the CR4

answer

"4 firm concentration ratio" It is the percentage of industry sales by the 4 largest firms

question

What is a benefit to consumers of having larger players?

answer

Larger players can ship to you for lower prices

question

What is the difference between demand and quantity demanded?

answer

Demand is the quantity buyers will buy at various prices and all possibilities -- Quantity demanded is the quantity demand at a specific price

question

A change in quantity demanded...

answer

Is a movement along the demand curve

question

What can change Quantity and Production?

answer

Substitutes Complements Income Preferences Expectations # of consumers

question

What changes Market supplied?

answer

Price of input supplies Tech changes Bio/Climate changes Expectations # of suppliers

question

An increase in supply moves in what direction?

answer

Right

question

What is the largest portion of the Food Marketing Bill? ⭐

answer

Labor

question

How many times does an object change possession before it reaches the consumer? ⭐

answer

5-7 times

question

What is the largest circle in the food diagram? ⭐

answer

Food Bill

question

What is the line that separates the imports from the rest of the food bill? ⭐

answer

Food Dollar

question

What is the outter layer (not the line but the stuff in between) of the food diagram?⭐

answer

Imports

question

What is the inner circle of the food diagram? ⭐

answer

Food Marketing Bill

question

What is the larger part of the dashed line in the food diagram? ⭐

answer

Services, Supplies, and Inputs

question

What is the smaller part of the dashed line in the food diagram? ⭐

answer

Farm share

question

Fresh Produce and Dairy products are the most common sources for food Bourne illnesses.⭐

answer

True

question

Processors tend to locate their facilities near agricultural production regions ⭐

answer

True

question

The farm share of the food dollar has been less than 16 cents of the dollar since 2000⭐

answer

True

question

Less that 25% of the land in the USA is used to produce food and fiber ⭐

answer

False

question

Both the demand for food products and the supply of food products are relatively stable throughout the year ⭐

answer

False

question

Over the next twenty years dairy products are projected to have a decrease in per capita consumption⭐

answer

True

question

There is an increasing trend in real retail food prices ⭐

answer

True

question

Increasing incomes are leading to more emphasis placed on product price and less emphasis placed on food quality attributes ⭐

answer

False

question

Approximately 1 outta 2 meals is consumed away from home ⭐

answer

False. 1/2 of food expenditures areaway from home but notconsumed away from home.

question

The US food market is a mature market which means that growth in the food market will come from older Americans eating more food.⭐

answer

False

question

There is little quality variation in fruits and vegetables.⭐

answer

False

question

Commodity prices at the farm level are the most important factor in determining consumer food prices and choices ⭐

answer

False

question

The share of US income that US consumers spend on food has been decreasing ⭐

answer

True

question

Due to biological nature of food production, Aggie firms are able to quickly contract in order to adjust to price signals in the market ⭐

answer

False

question

Increased importance will be placed on functional foods ⭐

answer

True

question

Agricultural producers are quickly able to adjust to market price signals ⭐

answer

False

question

Since 2000, the share of income spent on food has been rapidly decreasing ⭐

answer

False

question

If the farm share of the food dollar is decreasing then farming is becoming less profitable. ⭐

answer

FALSE

question

Institutional Wholesalers typically do NOT sell to food service retailers⭐

answer

FALSE

question

There is an increasing trend in both the food bill and the food marketing bill ⭐

answer

True

question

Approximately 50% of all jobs in the USA are related to some aspect of the agri-food system ⭐

answer

False

question

The farm share of the food dollar has been decreasing over time ⭐

answer

True

question

If the price of milk doubles, then the proce of ice cream doubles ⭐

answer

False

question

Value Added = price sold - cost to enhance ⭐

answer

True

question

Sams club is an example of an institutional Wholesaler. ⭐

answer

False

question

The average food product travels approximately ____ - _____ miles before reaching the consumer. ⭐

answer

1200-1500

question

Selling Syngenta's corn seed to a corn farmer is an example of what player? ⭐

answer

Aggie input supplier

question

Which value Added is performed when a company transporting wheat from the elevator moves it to the manufacturer for milling? ⭐

answer

Place

question

Wholesalers and assemblers merging is a current trend in agribusiness. ⭐

answer

False

question

Increasing domestic population is the best reason for an increasing trend in the food marketing bill ⭐

answer

True

question

A commodity processor would likely sell a product like cocoa powder ⭐

answer

True

question

What portion of the food dollar is considered farm share?⭐

answer

15-20%

question

JBS is an example of what player?⭐

answer

Initial provessor

question

An apple processing plant takes apples, turns them into juice, and transports them in their own trucks. What types of value Added are added in this situation? ⭐

answer

Form and Place

question

A firm whose primary business is to buy small and sell large without changing the form of the possession is what kind of player?⭐

answer

An assembler

question

Wholesalers distribute food to retailers in ____

answer

Bulk

question

Aggie input suppliers provide seeds and ____ to farmers

answer

Inputs

question

Meijer's is a what? (What kind of retailer?)

answer

Food service retailer

question

Farmers account for what percent of the USA population?

answer

<2%

question

A modern supermarket typically has how many UPCs on its shelves

answer

40,000

question

Michigan is not #1 in what area? Blueberries Milk Cucumbers Black beans Cherries

answer

Milk

question

In terms of Aggie diversity Michigan ranks what?

answer

#2

question

What share of of the food dollar do farmers earn (in cents?)

answer

6-8 cents

question

The food and fiber marketing system accounts for what percent of the US labor force?

answer

20-25%

question

In Michigan, which commodity accounts for the highest cash receipts? Soybeans Milk Need Corn

answer

Milk

question

The top USA chain restaurant, based on value of sales is

answer

McDonald's

question

What industry is the largest user of sugar in the USA?

answer

Cereal

question

Nearly 90% of US breakfast cereal is produced by the 4 largest food manufacturers

answer

True

question

About 160,000 farms in the USA produce most of the food we eat.

answer

True

question

Coke outsells Pepsi but makes less total money than pepsi

answer

True

question

Brazil has the world's largest ethanol industry

answer

True

question

If the price of milk doubles then the price of ice cream doubles

answer

False

question

Nearly 1/3 of food produced for human consumption is wasted

answer

True

question

Farms are shifting away from production of homogenous commodities towards production of commodities with specific end use attributes ⭐

answer

True

question

If ice cream and popsicles are substitutes, one would expect a decrease in the price of ice cream would cause the demand of popsicles to increase ⭐

answer

False

question

A potential benefit to consumers of market concentration in the agri food system is that latger firms may be able to exercise market power ⭐

answer

False

question

Japan has typically been in the top four export destinations for USA Aggie and food exports ⭐

answer

False, they're #5

question

Most farms in the USA are non-family farms ⭐

answer

False

question

In the 20th century, labor was the primary driver of increased Aggie productivity at the farm level ⭐

answer

False

question

The clustering of fruit production and processing in the Traverse Bay Area is an example of market concentration ⭐

answer

FALSE, geographic concentration

question

If a surplus exists in the market, then there is downward pressure on price ⭐

answer

True

question

Would a shift in the supply of milk be caused by a change in the price of hay used to feed cows? ⭐

answer

Yasss

question

The USA has a negative Aggie trade ⭐

answer

False

question

Geographic concentration which leads to increased efficiencies in the market channel is considered an impact in increased what?⭐

answer

Tech

question

If corn is an input for chicken production, and its price dropped, how would dat effect da chicken market?⭐

answer

Da supply curve shifts dog, decreasin price and increasin quantity traded in da market

question

Small scale farms account for less than 25% of all farms assets ⭐

answer

False, 50%

question

If a new production of technology reduces tge cost of producing sugar beets, the supply curve for sugar beets will likely decrease ⭐

answer

False

question

If Tyson owned 1/3 of the sows in the USA then what would be one benefit for the consumer? ⭐

answer

It decreases costs per unit of production and processing

question

Keep studying

answer

Gotta keep studying

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