Reverberating Mergers in the Food Chain Post-2014 Flour Post-2015 - PowerPoint PPT Presentation

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

National Market Share of Top Four Hog Packers 65.0% 64.0% 55.0% 54.3% 43.8% 36.6% 35.8% 1982 1987 1992 1997 2002 2007 2011 Source: USDA GIPSA

Number of Iowa Hogs Sold Double But Value Declines 47.3 $5.8 41.2 $5.1 $4.8 $4.1 $3.9 $3.7 27.5 26.8 23.8 23.5 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 3,852 34,000 18,400 1,454 11,300 8,800 747 584 470 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 • Maryland E. Shore The value of poultry & egg sales from Maryland’s Eastern Shore: Poultry Value $848 nearly $1 billion in 2007 (2007 in millions) • Companies pay farmers: $280 for every 1,000 birds • Farmers earn about $31,000 $83 annually after paying $70,000 to $25 service their debt Poultry/Egg Total Farmer Farmer Net "Sales" Broiler Receipts Earnings

Maryland’s Eastern Shore Farms Production Share of Selected Crops & Livestock Source: USDA Maryland’s Eastern Shore went from diversified operations - with significant vegetable production – 84.7% to a few farms producing mostly broilers and feed 61.0% 59.5% 50.3% 47.7% 38.4% 32.0% 18.0% 17.5% 9.0% 6.4% 3.5% 2.5% 2.2% 2.0% 2.0% Beef Cattle Hogs Dairy Broilers Vegetables Corn Wheat Orchards 1940 2007

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

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

Supersizing the Supermarket Market Share of Four Largest Grocery Retailers 53.1% 50.7% 34.0% 34.0% 30.9% 28.8% 20.8% 17.0% 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% 82.7% 80.8% 79.9% 78.9% 78.7% 76.7% 75.7% 75.8% 74.2% 73.2% 68.7% 68.1% 67.5% 64.8% 63.8% 60.6% 60.3% Soda* Chocolate Performance Breakfast Potato Chips Ketchup** Refrig. Yogurt* Peanut Butter Pasta Sauce Coffee Lunch Meat Bars Cereal 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

Consumer Cost and Farmer Share of Whole Foods 250 40% 35% 200 30% Retail index (1982-84 = 100) 25% 150 20% Farmer Share 100 15% 10% 50 5% 0 0% 1984 1989 1994 1999 2004 2009 Retail Cost Farm Share 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 $11.80 $11.70 100 50 0 Fresh Whole Milk CPI Cheese CPI Farmgate Milk ($/100 gal.) Source: USDA; Census Bureau.

Average Annual Change in Food Prices and Typical Wages 2000-2012 Processed cheese -1.3% Bologna -0.6% Milk -0.3% Hourly wages 0.4% Broccoli 0.8% Cheddar cheese 0.8% Apples 1.0% Peanut butter 1.1% Bread 1.2% Pasta 1.5% Potatoes 2.9% Ground beef 3.2% Eggs 3.8% Source: Food & Water Watch analysis of Bureau of Labor Statistics data.

Food Industry Lobbying Expenditures on 2008 Farm Bill (millions) $17.0 $11.0 $9.9 $5.7 Commodities Food Manufacturers Seed, Agrochemical, Meatpackers, Poultry Veterinary and Cos. and Livestock Biotechnology 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

Food & Water Watch www.foodandwaterwatch.org Foodopoly www.foodopoly.org