Corporations are taking greater control of the food system, both in the U.S. and across the globe. Multinational conglomerates such as Cargill and Philip Morris, and domestic food retailers such as Kroger and Albertson's, control much of the world's food supply. Consolidation has progressed rapidly - each year the corporate sector gains even greater control of our refrigerators and diets. Today, corporations process and distribute most of the food eaten by U.S. consumers. As this trend persists, consumers know less and less about the food they eat, who grew it, and how safe and healthy it really is. Today, money in the agriculture and food industry is made in the "supply" or distribution "chain". The retail grocery industry has become a massive real estate operation where smaller processors and family farmers are denied access to buy or rent the expensive shelf space where products are displayed for consumers. Small, independent and family farmers still struggle to find alternate ways to bring their fresh products directly to their own communities while U.S. consumers eat food that on average travels more than 2000 miles before it reaches their plate.

Who are they?

Kroger is the number one food retailer in the United States. Subsidiaries include: Ralph's, Food 4 Less, Kings Sooper's, Fry's, and Payless. Together, the top five retailers in the U.S. - Kroger, Wal-Mart, Albertson's, Safeway and Ahold USA (a subsidiary of the Netherlands based Ahold International, which operates Giant Foods, Tops, Stop & Shop, and Bi-Lo) - control more than 42% of all retail food sales in the U.S.

Cargill is an international marketer, processor and distributor of agricultural and food products that operates in 60 countries. A dominant force in the entire global grain market, Cargill also develops genetically modified seeds, and distributes and processes grain and beef globally. They supply packaged beef directly to entities such as Kroger Foods.

Philip Morris is one of the three largest food processors in the world. PM owns Kraft Foods and ranks third in U.S. dairy sales. As they gain greater market control, Philip Morris and other processors, like Nestle (based in Switzerland) focus their attention toward their retail consumers such as Kroger and Wal-Mart, not the families who ultimately buy and consume their product.

How do they do it?

Horizontal integration is the process by which companies within a single sector merge and consolidate to strengthen their power within a single industry. This trend has been particularly prevalent in food retailing, where many local and regional grocery chains have been bought out by large national grocers such as Kroger and Albertson's. In the meat processing sectors, companies like Tyson's and Smithfield have gobbled up smaller chicken and pork processing operations across the country. Smithfield is the number one pork processor in the U.S. and owns 10% of the number two processor, Iowa Beef Packing (IBP).

Vertical integration refers to one corporation controlling the successive steps in the production, processing and distribution of products. Cargill is a prime example of a vertically-integrated conglomerate. Long a dominant force in the grain and seed market, Cargill also produces, processes, distributes and markets animal feed as well as the pork and beef they feed with it, and is the major supplier of packaged beef to Kroger (#1 grocer in the U.S.) and National Grocers (#1 in Canada). Cargill also markets its own processed foods, such as ACT II Popcorn.

THE JUICY TRUTH

Integration shuts small farmers, independent producers and small processors out of retail food markets. Overpowered and overshadowed by corporate mega-farms and integrated chains of production that can mass produce and bulk ship products to fill expansive supermarket shelves, small and minority producers are forced to sell raw product at low prices, or to seek alternate channels to reach consumers willing to shop beyond the handful of retail grocery chains.

Small farmers are finding new and innovative ways to reach consumers, to keep their farms going and to take back the food system. Some have banded together to form cooperatives such as Fall River Wild Rice and Flora Viva (see Food n' Faces), as well as our own SuperMarket Coop. They have pooled their resources and explored new packaging and marketing strategies, creating new opportunities for their members, as well as for consumers.

Certainly there are producers in your area who have formed cooperatives and found other ways to reach consumers. The summer offers a great opportunity to connect with these producers. Here's how you can begin learning about the food that is being grown practically in your back yard: seek out local fresh fruits and vegetables, meat, eggs, herbs and flowers, along with baked goods at farmer's markets, at road-side farm stands, in local cooperative markets and in health foods stores. Many farmers and cooperatives encourage you to come out to their sites and explore their farms and processing facilities, and even spend a day picking your own fruits and vegetables.

Buying food from local independent farmers and ranchers, their cooperatives and in markets that sell local goods does more than just fill your fridge and cupboards. The food that you feed your family is fresher, healthier and tastier. It is most likely produced with fewer chemicals and hormones then the alternatives found at Kroger or Albertson's, and in a way that is more sustainable for the land and the environment. Moreover, the dollars you spend to purchase directly support local family farmers and other businesses that are connected to your community.

THE JUNE SQUEEZE

Put Your Money Where Your Mouth Is

We are asking the Senate to:

What you can do: Eat Healthy! Eat Local!

Be Part of Our Campaign for Food n’ Justice, visit www.ruralco.org.
Questions on food and farm policy?
Contact Heather Fenney at (202) 628-7160.
To join or support our work:
Rural Coalition/Coalición Rural
1012 14th Street, NW Suite 1100
Washington, DC 20005
(202) 628-7160
Visit www.Ruralco.org or www.SuperMarketCoop.com.

A Project of The Rural Coalition
1012 14th Street NW Suite 1100
Washington, DC 20005
Telephone (202) 628-7160 Fax (202) 628-7165
Toll Free 1-866-RURAL-80