The Three Headed Monster That's Eating Our Food Supply.
Every year the nutrient value in our food supply is diminished by mega food corps who focus on profits instead of nutritional content. Corporate executives are maniacally focused on the optimization of profits so that they in turn get their annual bonuses. Unfortunately, they are not incentivized to focus on optimizing the nutrient value in your food.
This is why six companies are merging into the biggest agri-oligopoly in history. Pending mergers right now include;
- Bayer to buy Monsanto for $66B US,
- Dow to purchase Dupont for for $59B US and
- Chinese National Chemical to buy Syngenta for $42B US.
These Ag-Science based companies specialize in chemicals, seeds and/or GMO production. All but Bayer have been experiencing declining sales because their product portfolios have been optimized and overused in a saturated mature market.
The mega corporate solution for sales declines is mergers and acquisitions (M&A). M&A reduces competition, increases prices and profitability and streamlines research costs that uncover new ways to further reduce costs to make more money.
This thinking is why Genetically Modified Organisms (GMOs) were created. It's also why chemical, hormone and antibiotic use in agriculture continues to accelerate in spite of consumers demanding less of it.
As big as the new oligopoly will become, it will still be the smallest head on a three headed monster that is trading the nutrient value of our food supply for profits. The three industry heads of the monster ranked by size include;
- Sales and Distribution
- Production and
- Ag Science.
Sales and Distribution and Production have forced Ag Science to consolidate to squeeze more profits out of their collective share of our food supply. History shows that corporate consolidation reduces the nutrient value of the food supply by pushing smaller producers out of the market. Here's how;
Small producers make up the majority of food production but pay the highest prices in the market for their supplies. Mega producers pay the least for supplies through volume discounts. Small producers are unable to pass all of their cost increases on to customers.
That's because their customers are also their biggest competitors. Mega producers directly and indirectly buy small producers products because they control the flow of agriculture processing and distribution that goes to the mega sales and distribution channels. By doing so, the mega producers set the prices in the market for the smaller producers.
Mega producers devour small producer market share by not accepting their pass along price increases. This leaves the mega producers to buy more product from agri-science at lower discount costs to further improve their margins.
Even after acquiring smaller producers, mega producers are under constant pressure to further reduce costs and to grow their profits. That's because sales and distribution corporations apply greater pressure on producers to grow their profits while attracting more customers with cheaper prices.
This is why mega producers successfully lobbied Washington to remove country of origin from food labels with the intent to hide cheaper offshore growing and processing on product labels, even though consumer demand for local products and greater transparency through instant traceability has never been higher. It's also why GMOs, feedlots and industrial growing are so prevalent with mega producers. These practices are used to expedite growth and yield for better profits,regardless of the nutrient value cost to the food supply.
The US has the lowest average personal expenditure for food in the world because of corporate control of the supply. But all the shortcuts to more profitable production are at the direct expense of the nutrient value in our food. When you don't understand the loss of the nutrient value in your food, it's easy to believe food in the US is a an amazing value. But the truth is the food supply is actually costing the US more than most other places in the world. Here's how;
Research shows the skyrocketing dollars spent on healthcare is driven in large part by nutrient poor diets. The US pays more than any other country for healthcare, but it is nowhere near the healthiest country. Those same studies clearly show you are what you eat, how you eat impacts your health and the healthiest places on earth have the healthiest natural food diets. For more info on the nutrient value of your food use this link.
Unfortunately, corporate food not only drives small producers out of business, it also has a significant impact on your health. The solution to improve your overall health in a corporate food environment is to seek out better producers.
Ranchers and farmers who have a mission to improve, not diminish the nutrient value of food are your best bet. They produce in the better ways of yesteryear without cutting corners. They are able to do this only when they successfully find a loyal market who understands the nutrient value of food equation and is willing to pay more for better food.
Even when you are extremely selective in food choices, it is nearly impossible to keep the three headed monster out of your cupboard. But when you buy smarter, it not only improves the nutrient value of your food, it also changes the monster's behavior for the better.
That's why we encourage you to "Keep On Ranching" by supporting local ranchers and farmers. The more you do, the more your food supply will improve for you and future generations through the preservation of better nurturing practices.
This link has more information about the current corporate ag-science mergers . If you want your voice heard in Washington and with your state legislature regarding much needed improvements in the food industry, you can find out who your representatives are and reach them via email with this link.
"Keep On Ranching!"