Unit 1 - Introduction to Food Science and the Food Industry.docx

Vertical integration a single firm controls the flow

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Vertical integration – a single firm controls the flow of a commodity across two or more stages of food production International Activities United States account for ¼ of the industrialized worlds total production of processed foods 6 of the largest 10, and 21 of the largest 50 food firms are headquartered in the US Recent trends to decrease trade tariffs (charges) has stimulated international activities in the food industry, as have improvements in transportation and communication A nation’s infrastructure policies affect the ability of its firms to pursue global marketing strategies Responsiveness to Change People’s food changes due to demographic shifts, supplies of ingredients, availability and costs of energy, politics, scientific advances in nutrition, lifestyle, food safety, health The market must adapt in regard to food composition, additives, labelling, new processing methods, cooking advances, etc. Interrelated Operations The industry is high volume and low markup, small losses anywhere along the chain can mean large losses to the food producer FACT: PepsiCo (then Tyson, Nestle, JBS, Coca-Cola) is the largest food-processing firm, McDonalds (then subway, Starbucks, Burger King, Wendy’s) are the top 5 restaurant chains in the US
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  • Fall '19
  • Food processing

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