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have you ever stopped to think about
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where the food you eat comes from how
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the Apple in your lunch makes its way
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from the orchard to your house that's
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the story of the food supply chain and
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that's the topic we're going to explore
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in this
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video at the simplest level the food
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supply chain refers to the series of
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processes and stages that food products
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go through from their initial production
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to their final consumption and Disposal
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the food supply chain encompasses all of
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the activities organizations resources
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and AC involved in transforming raw
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agricultural materials into finished
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food products that are delivered to the
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consumer it can be divided into several
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key stages each playing a crucial role
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in ensuring the availability quantity
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and safety of food the chain begins with
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production which includes not just
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farming and cultivation of crops but
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also livestock production and even the
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harvesting of fish and seafood from the
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oceans rivers and aquaculture facilities
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after production the food item moves to
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processing where the raw agricultural
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products are Tred into the forms that
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are suitable for consumption depending
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upon the product this can be relatively
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simple like sorting and cleaning oranges
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or it can be incredibly complex like
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turning raw materials into frozen meals
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after processing and packaging the food
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item moves on to the next stage in the
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process distribution where it's moved
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from the processing facilities to
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retailers depending upon the foods being
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transported and the distance traveled
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this this may be relatively simple like
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loading produce onto a truck for sale at
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a farmers market or incredibly complex
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like flying high value food products
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from far-flung regions of the world to
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high-end
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restaurants next food is purchased
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through retail outlets which can range
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from restaurants and cafeteras to
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grocery stores and farmers markets to
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nearly anything in
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between and finally it reaches the final
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consumer through this process food makes
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its way from the farmer to the consumer
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while money makes its way back from the
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consumer purchasing the Apple ultimately
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back to the farmer that grew it but to
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be clear this does not mean that the
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farmers capture all of the money spent
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on food indeed they don't even capture a
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majority of it according to the US
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Department of agriculture's Economic
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research service for every dollar spent
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on food in the United States less than 8
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cents went back to the farmer that grew
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the food and that's not profit that's
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gross revenue from which all farm
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expenses including input costs like Seed
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and Feed and fertilizer must be paid
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about 17 cents was spent on processing
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with about 14 cents of every dollar
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going to processing and a little less
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than 3% spent on packaging the
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distribution stage of the value chain
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claims about 14 cents of every dollar
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with about 3.5 cents of that going to
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transportation and about 10.7 cents
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being spent on the wholesale food trade
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the retail stage claims the largest
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share of the food dollar with about 46.5
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cents of every dollar spent going to
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retail and finally all other expenses
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including energy costs Finance Insurance
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legal and accounting services
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advertising and so on Claim about 14
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cents of every food dollar let's explore
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each of these stages in a bit more
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detail to get a more complete picture of
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what each entails and let's start at the
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beginning of the food supply chain at
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the level of production here there are
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three primary types of activities
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farming is the process of cultivating
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the land for the production of crops or
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rearing of animals for food fiber or
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other products it involves planting
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cultivating harvesting and storing of
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crops or raising and caring of animals
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generally for the production of meat
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Dairy eggs fibers or other animal
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products as we'll consider in another
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video farming can range some small scale
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family farming and subsistence
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activities to large-scale Industrial
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operations on a massive scale earning
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multiple millions of dollars per year
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ranching is the practice of raising or
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grazing livestock animals like cattle
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sheep and horses on large tracks of land
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it involves grazing animals on natural
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or cultivated pastures herting breeding
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and managing livestock to produce meat
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wool or other animal products while
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ranching can take place at a variety of
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scales from small scale family
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operations to large scale industrial
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ones the economies of scale for
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livestock production generally lead to
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larger operations involving large areas
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of land with extensive grazing
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operations and finally fishing is the
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activity of harvesting catching or
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raising aquatic animals primarily fish
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or shell fish a broad category that
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includes everything from shrimp Lobster
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and crabs to clam oysters muscles and
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scallops fishing can Encompass a variety
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of activities and techniques ranging
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from line and net fishing to large-
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scale industrial trollers to fish raised
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in controlled environments generally
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referred to as
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aquaculture food processing can be
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classified into three main categories
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Each of which involves different
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techniques and objectives ultimately
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transforming raw agricultural materials
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into consumable food products primary
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food processing involves the initial
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steps of transforming raw agricultural
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materials into forms that are suitable
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for consumption or further processing
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this stage focuses on the basic
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preparation and preservation of food
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items like cleaning removing dirt debris
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and contaminants from raw materials
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sorting and Grading categorizing raw
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materials based on size quality and
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other attributes shelling and husking or
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removing the outer coverings from nuts
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grains and seeds butchering slaughtering
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of animals and initial cutting of
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livestock into Primal cuts milking
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extracting milk from dairy animals or
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Milling grinding grains into flour and
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other forms in other words primary
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processing might include activities like
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washing and peeling fruits and
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vegetables shelling and drying nuts and
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seeds Milling wheat into flour or
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pasteurizing milk to make it safe for
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final
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consumption secondary food processing
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involves transforming primary processed
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foods into more complex food products
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this stage typically involves combining
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ingredients and applying various
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techniques to produce a wide range of
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food items including mixing different
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ingredients to create new food products
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cooking by baking boiling frying
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roasting and so on fermentation which is
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the process of microorganisms to which
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is the process of using microorganisms
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to transform foods like producing yogurt
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cheese beer or preserving using methods
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like canning freezing or drying to
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extend the shelf life of food and
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finally tertiary food processing
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involves the production of ready to eat
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or ready to heat food products this
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stage often focuses on convenience and
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value added products that require
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minimal preparation by consumers this
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can include cooking or pre-cooking meals
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so that they can be readily and quickly
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reheated packaging finished product for
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retail sales adding flavor seasonings
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and preservatives to enhance taste and
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shelf life and portioning food into
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individual sizes for immediate
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consumption for the most part the more
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processed a food item is the greater the
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proportion of the sale price captured by
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the processors an apple generates less
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profit for the processor than a ready to
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eat microwavable meal similarly a
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prepackaged salad can be sold for a
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higher price than less processed leafy
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greens that can be used to make it and
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while processing is more convenient and
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can improve shelf life potentially
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reducing waste and helping ensure
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product availability throughout the year
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it also comes with several negatives
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processed foods often contain high
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amounts of added sugar salt and
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unhealthy fats which can contribute to
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obesity heart disease high blood
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pressure and other chronic diseases and
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many processed foods contain artificial
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ingredients like preservatives colors
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and flavors which can have potential
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health risks the most processed foods
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so-called ultra-processed fruits or UPS
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often contain a long list of ingredients
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including artificial additives research
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suggests that high consumption of upfsi
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with increased risk of chronic diseases
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like obesity heart disease and cancer
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finally processing also tends to
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increase the amount of packaging which
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can contribute to environmental
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pollution and Waste Management problems
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the distribution and Logistics stage of
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the food chain provides the crucial link
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between food production and consumption
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it involves the complex processes of
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transporting storing and managing food
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products from the point of origin like
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farms and processing plants to the point
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of sale like food retailers and
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restaurants food products are
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transported using a variety of methods
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including trucks ships Airlines and
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trains the choice of Transport depends
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on factors like the distance travel the
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type of food being transported and the
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urgency of the shipment for the most
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part airplanes are used for the
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transport of high value perishable and
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time-sensitive goods requiring rapid
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delivery think of fresh fish or cut
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flowers transported from Africa to
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Europe and North America ships are most
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often used for international and
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long-distance transport of bulk and non-
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perishable items trains are commonly
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used for transporting large quantities
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of food over long distances within
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continents while trucks are normally
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used for short medium distance
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deliveries to local food retailers
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advances in cold chain Logistics and
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temperature controlled Supply chains
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involving refrigerated storage and
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transport to prevent spoilage and
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maintain food safety have permitted the
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development of yearr round production
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and consumption of perishable items like
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Dairy meat and fresh produce this is
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important for a couple of reasons first
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it is permitted the distancing of food
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production and consumption a commonly
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cited figure is that the average meal
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travels 2,000 mi from Farm to Fork
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leading to the concept of food miles and
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while there's some debate over the
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accuracy of this figure it nevertheless
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highlights the way in which the modern
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food supply chain has permitted the
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globalization of food production our
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local grocery stores contain ingredients
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sourced from around the world bananas
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from Central and South America coffee
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from South America Africa and Asia
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chocolate from West Africa olive oil
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from Europe tea from South Asia and so
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on it's also obviated the idea of
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seasonality gone are the days when
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consumers could only find strawberries
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in the spring or oranges in the winter
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squash in the fall and so on instead
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fruit and vegetables can often be found
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throughout the year as the site of
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production can be shifted from countries
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in the global North to the global South
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and back again to maintain year round
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provisioning but for all these benefits
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the globalized system of food
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distribution comes with some risks and
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consequences as well supply chain
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disruptions caused by natural disasters
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pandemics or geopolitical conflicts can
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disrupt the supply chain causing delays
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and shortages a prime example of this
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were the food shortages resulting from
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the co ID 19 pandemic which resulted
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from significant disruptions in the
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global supply chain affecting
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transportation and labor availability
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the globalization of food supply chains
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can also have real environmental impacts
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though this has to be weighed against
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the environmental impact of local
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production one study for example found
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that the carbon emissions associated
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with apple production in the United
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Kingdom were significantly greater than
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growing apples in New Zealand and
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shipping them to the UK for consumption
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but the environmental impact of other
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Transportation methods particularly Air
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transport is much greater the retail
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stage of the food supply chain is the
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point where food products are sold to
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the consumer this stage divides into two
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categories broadly centering on food at
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home and food away from home
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historically the majority of food
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spending and by extension food
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consumption in the United States was on
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food consumed at home purchased from
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grocery stores and similar Outlets
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however this has been changing in the
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1960s Americans spent about 3/4 of their
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food budget on meals at home while food
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away from home represented about 1 qu of
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total spending today American spending
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on food is evenly divided indeed in 2022
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the most recent year for which data is
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currently available Americans spent a
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little more than $1 billion on food
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eaten at home and about $1.3 billion on
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food eaten away from home the Department
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of Agriculture further disaggregates the
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spending of the $1 billion spent in 2022
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on food spent at home the majority comes
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from retail grocery stores and
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supermarkets which offer a wide range of
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food products including fresh produce
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Dairy meat packaged foods and so on this
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category includes both traditional
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grocery stores like Kroger Albertson and
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Safeway which is owned by Albertson and
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wico which account for more than half of
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all food purchases it also includes
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specialty groceries like Aldi Trader
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Joe's and Whole Foods as well as
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specialty shops focused on specific
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foods like bakeries butcheries fish
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markets and so on which together
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comprise about 10 to 15% of all food
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purchases and finally it includes
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Warehouse clubs like Costco and Sam's
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Club which represent about 20% of food
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purchases convenient stores are smaller
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stores that offer a limited selection of
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food products usually focusing on snacks
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Beverages and ready eat items they
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account for a smaller share but growing
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share of food purchases estimated to be
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about 2% of all consumption e-commerce
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platforms that sell food products online
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offering Home Delivery Services as well
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as large online grocery stores
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subscription meal kits are a growing
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segment of the food at home Market
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representing a little less than 10% of
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all food at home this segment picked up
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significantly after the covid-19
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lockdowns and finally all other sources
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represent about 1% of food consumed at
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home as for food away from home a little
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less than 40% is spent at full service
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restaurants in which customers are
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serviced by weight staff this includes
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fine dining restaurants like Ruth's
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Chris Steakhouse or the Capitol Grill
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casual dining chains like Olive Garden
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or chilies and thousands of independent
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sitdown restaurants a similar amount is
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spent on limited service restaurants
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which are establishments offering Quick
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Service where customers generally order
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and pay at the counter unlike full
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service restaurants where food is almost
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always eaten on site limited service
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restaurants may serve food eaten on
00:13:46
premises take out or delivered this
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includes fast food chains like
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McDonald's in and- out in Taco Bell fast
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casual chains like Chipotle and Panera
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and pizza delivery services like
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dominoes and Pizza Hut drinking places
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like bars pubs lounges and nightclubs
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are generally engaged in preparing and
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selling alcoholic beverages for
00:14:05
immediate consumption and generally
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serve limited food items comprising
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about 1% of the food eaten Away From
00:14:11
Home Food Service provided by hotels
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represents about 5% of food away from
00:14:16
home recreational places comprise about
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4% of food away at home this includes
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amusement parks like Disneylands and Six
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Flags concession stands at sports
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stadiums and food courts at recreational
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facilities like movie theaters
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schools and colleges serve about 6% of
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the meals eaten away from home including
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cafeterias and K12 schools colleges and
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University dining halls and on campus
00:14:38
food courts and cafes finally all other
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sources ranging from food trucks to
00:14:43
vending machines to catered events and
00:14:45
Beyond comprise about 6% of food eaten
00:14:47
away from home a variety of challenges
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arise in the retail stage of the food
00:14:52
supply chain in recent years
00:14:54
consolidation has reduced competition in
00:14:56
the retail sector this has often
00:14:58
resulted in in higher prices for
00:15:00
consumers and greater pressure on
00:15:01
suppliers and Distributors redlining the
00:15:04
historical practice of denying or
00:15:06
limiting access to healthy foods and
00:15:08
affordable food options in specific
00:15:10
neighborhoods often based on racial or
00:15:11
socioeconomic factors has contributed to
00:15:14
the development of food deserts in
00:15:15
poorer neighborhoods this is typically
00:15:17
done by large Supermarket chains who
00:15:19
choose not to locate their stores in
00:15:21
these areas leaving residents with
00:15:23
limited access to Fresh Produce meats
00:15:25
and other essential food items and
00:15:27
forcing them to secure food from conveni
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stores redlining has a variety of
00:15:31
impacts on the effective communities in
00:15:33
addition to limiting access to fresh and
00:15:35
nutritious Foods it also tends to result
00:15:38
in higher food prices higher rates of
00:15:40
diet related diseases and fewer economic
00:15:43
opportunities in the neighborhood
00:15:44
creating a vicious cycle of
00:15:46
poverty retailers contribute to food
00:15:49
waste through practices like discarding
00:15:51
unsold or imperfect produce and
00:15:53
overstocking perishable
00:15:55
items but that's it for now please leave
00:15:57
any questions you have in the section
00:15:59
below and thanks for watching
