1. Overview of the Food System AG BM 102

2. Source: CIAL News, August 27, 2015

3. New Zealand Dairy Exports (ytd) Mil US Dollars 20142015% Change WHP$4,173$2,215-47% Butter$1.411$967-31% Cheese$762$695-9% Skim MP$964$596-38% Whey Powder $342$336-2% Casein$355$333-6% Caseinates$203$202-1% Other$255$247-3% Total$8468$5592-34%

4. Overview of the food system What is the food system? Location of production Location of consumption Paths to the consumer

5. The Food System – elements Products and services Value added Information

6. The Food System Information & Money

7. Location of production Depends on product Agriculture is increasingly specialized Individual farms specialize Regions specialize Key factors: –Where the resources are –Where the consumers are

8. Specialization Agriculture is specialized regionally Allows for more infrastructure –Equipment dealers –Processors Matches product w/ growing conditions Requires more transportation Allows larger-scale production

13. SugarcaneforSugar2010ProductionbyCountyforSelectedStates U.S.DepartmentofAgriculture,NationalAgriculturalStatisticsService Tons NotEstimated<100,000100,000-249,999250,000-499,999500,000-999,9991,000,000-2,999,9993,000,000 + SugarcaneforSugar2010ProductionbyCountyforSelectedStates U.S.DepartmentofAgriculture,NationalAgriculturalStatisticsService Tons NotEstimated<100,000100,000-249,999250,000-499,999500,000-999,9991,000,000-2,999,9993,000,000 + SugarcaneforSugar2010ProductionbyCountyforSelectedtates U.S.DepartmentofAgriculture,NationalAgriculturalStatisticsService Tons NotEstiated<100,000100,000-249,999250,000-499,999500,000-999,9991,000,000-2,999,9993,000,00 +

24. Main Cheese Producing States 2004 Million pounds 0 to 600 600 to 750 1500 to 2000 2000 to 2400

25. Main Butter Producing States 2004 Million pounds 0 to 20 20 to 50 50 to 100 300 to 350 350 to 400

26. Main Ice Cream Producing States 2004 Million gallons 0 to 10 10 to 30 30 to 50 50 to 95 95 to 130 130 to 140

27. US State Populations, 2011

28. Types of food market basket share TypeShare Meat33.7% Fruit and Vegetables14.0% Cereal & Bakery12.6% Dairy13.6% Sugar & Sweets4.2% Fats &Oils2.7% Non-Alcoholic Beverages11.0% Other Prepared Foods8.4%

29. Paths to the consumer Food consumed at home and food away from home Food away from home: –33% of food consumed –46% of the money spent on food Farmer’s share of the money: –25% of food at home –16% of food away from home

31. Farm Share -2008 ProductShareProductShare Fruit & Veg.17%Poultry41% Meat31%Process Fruit & Veg 17% Dairy33%Fats & Oils8% Bakery & Cereal 10%All Food23%

32. And the share of marketing costs is rising

33. Concluding Comments Marketing makes the food system work Regional specialization requires lots of transportation Diverse consumer needs require services (added value) Lots of services – all have to be paid for Each product has its own story