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ANSC 227 01-28-2015 The American Ag Industry

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Dr. Charlie Apter

on 4 February 2015

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Transcript of ANSC 227 01-28-2015 The American Ag Industry

U.S. Agriculture
Ag as a flow of products
Ag as an economic sector
largest sector of US economy
raw materials produced on 2 million US farms with average size of 446 acres
moving farm products to market a challenge
farms of diverse size
products of diverse nature
production over time (seasonal)
production over wide geographic area
perishable – use, or store for future use
many diverse firms market ag products
more than 730,000 nation-wide
raw farm product assemblers (10,000)
food manufacturing plants (21,000)
food wholesaling facilities (41,000)
grocery stores (96,000)
retail eating, drinking places (485,000)
like an inverted triangle
big bucks
US consumers spent nearly $700 billion on food in 1999
nearly 10.5% of after-tax income
most covers marketing firms’ labor cost
little ends up in farmers’ pockets (~20%)
thus retail food prices greatly influenced by labor costs and not so much commodity cost
contributions to US economy

Ag as a process
Corn as an example
Aalsmeer flower auction
Agriculture, also called farming or husbandry, is the cultivation of animals, plants, fungi, and other life forms for food, fiber, biofuel, drugs and other products used to sustain and enhance human life
Major segments
of agriculture
Full transcript