The Guardian and Food and Water Watch have produced a lengthy, interactive, and fact-filled investigative report, essential reading for anyone interested in how power is distributed in the US food system.
The report is a about how consolidation has increased the power of every segment of the food industry, and how that power imbalance threatens workers, consumers, and American democracy.
The size, power and profits of these mega companies have expanded thanks to political lobbying and weak regulation which enabled a wave of unchecked mergers and acquisitions. This matters because the size and influence of these mega-companies enables them to largely dictate what America’s 2 million farmers grow and how much they are paid, as well as what consumers eat and how much our groceries cost.
Here are some of the facts (and the Guardian summarizes others in an article on “The Illusion of Choice“):
- At least half of the 10 lowest-paid jobs are in the food industry. Farms and meat processing plants are among the most dangerousand exploitative workplaces in the country.
- Overall, only 15 cents of every dollar we spend in the supermarket goes to farmers. The rest goes to processing and marketing our food.
- Four firms or fewer controlled at least 50% of the market for 79% of the groceries. For almost a third of shopping items, the top firms controlled at least 75% of the market share.
- During the 2020 election cycle,the food industry spent $175mon political contributions, including lobbying by PACs and individuals and other efforts.
- Until the 1990s, most people shopped in local or regional grocery stores. Now, just four companies – Walmart, Costco, Kroger and Ahold Delhaize – control 65% of the retail market.
- Farmers received $424.4bn in subsidies between 1995 and 2020, of which 49% were for just three crops: corn, wheat and soybeans, according to theEnvironmental Working Group. Corn subsidies are the largest by a long way – $116.6bn – accounting for 27% of the total.
- At least half of the 10 lowest-paid jobs in the US are in the food industry, and they rely disproportionately on federal benefits. Walmart and McDonald’s are among the top employers of beneficiaries of food stamps and Medicaid, according to a2020 studyby a non-partisan government watchdog.
- Here in the US, there were 1.6bn animals living on 25,000 factory farms in 2017 – a 14% rise in just five years. Together, these animals produced about 885bn pounds of manure annually –equivalentto the human sewage generated by residents of 30 New York Cities.
FAQs
Policy. Government policies around food production, distribution, and consumption influence the cost, availability, and safety of the food supply domestically and internationally. On a national scale, food policy work affects farmers, food processors, wholesalers, retailers and consumers.
What is an example of monopoly in food? ›
For instance, PepsiCo controls 88% of the dip market, as it owns five of the most popular brands including Tostitos, Lay's and Fritos. Ninety-three per cent of the sodas we drink are owned by just three companies. The same goes for 73% of the breakfast cereals we eat – despite the shelves stacked with different boxes.
Who controls the food industry in the US? ›
U.S. Food and Drug Administration (FDA)
The FDA is charged with protecting consumers against impure, unsafe, and fraudulently labeled products. FDA, through its Center for Food Safety and Applied Nutrition (CFSAN), regulates foods other than the meat, poultry, and egg products regulated by FSIS.
What company owns all the food? ›
Only 10 companies control almost every large food and beverage brand in the world. These companies — Nestlé, Pepsico, Coca-Cola, Unilever, Danone, General Mills, Kellogg's, Mars, Associated British Foods, and Mondelez — each employ thousands of employees and make billions of dollars in revenue every year.
How could political issues impact food security? ›
Food security and political stability are often inextricably linked in many countries. Historically, significant malnutrition and famine have been caused by the disruption of food supplies through wars and civil strife.
How do government policies affect the foods we eat? ›
Government agencies may urge or order food companies to recall the contaminated products. The FDA also has an important role in reviewing drugs and other chemical compounds used in food animal production, including antibiotics.
Is McDonald's a monopoly? ›
A monopoly is a market structure where a specific person or industry is the only provider of a product. So the firm is basically the industry. McDonald's does not have a monopoly because there are other fast root restaurants.
Who controls the prices of food? ›
Price controls are normally mandated by the government in the free market. They are usually implemented as a means of direct economic intervention to manage the affordability of certain goods and services, including rent, gasoline, and food.
What is an example of a monopoly in the US today? ›
The United States Postal Service is an example of a government-sanctioned monopoly. The government also regulates public utilities, like gas and electricity, to guarantee a regular supply.
Which U.S. organization oversees 80% of our food supply? ›
FDA is responsible for overseeing the safety of about 80 percent of the nation's food supply and for promoting good nutrition.
Conagra Foods is being accused of violating California's Proposition 65, a lawsuit filed last week claims. The plaintiffs claim the food company manufactured and sold products containing lead and/or cadmium without warning consumers. The plaintiffs are asking for injunctive relief and a penalty against the company.
Who protects the U.S. food supply? ›
Selected Federal Agencies with a Role in Food Safety
The Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture, the U.S. Food and Drug Administration (FDA), and the Centers for Disease Control and Prevention (CDC) serve important roles in ensuring food safety in the United States.
What is the richest food company in America? ›
Leading North American food and beverage processors 2022/2023. PepsiCo was the leading food and beverage company overall in North America in the 2022 financial year. The corporation had sales of over 52.7 billion U.S. dollars from food and beverages that were processed on the continent.
What is the richest food company? ›
1. Nestlé (Switzerland) - $89.9 billion. Nestlé is the largest food and beverage company globally, with headquarters in Switzerland. The company has been around since 1866 and operates in 191 countries worldwide.
What role does the government play in the food industry? ›
Food Safety and Inspection Service: FSIS is the public health agency in the U.S. Department of Agriculture responsible for ensuring that the nation's commercial supply of meat, poultry, and egg products is safe, wholesome, and properly labeled and packaged.
Does the government control the food industry? ›
FDA is the primary (lead) agency responsible for regulating food that moves in interstate commerce (except meat, poultry and egg products, those are regulated by USDA); any food that moves among states is considered "an interstate movement" and subject to federal regulation.
Are there any political considerations for the fast food industry? ›
Moreover, health-associated campaigns by the government have an impact on the food chains like Arby's. Political factors also comprise of laws, activities and groups that impact and limit companies and individuals in a certain culture and society.
How does politics affect hunger? ›
Conflict and violence were the primary causes of hunger, malnutrition, and famine. Hunger and famine did not arise because there was not enough food to go around; they were caused by political failures, meaning that hunger and famine could only be addressed through political action.
