Regulation of the U.S. Food Processing Sector — Food Law
and constant flux of import regulations, make it impossible to validate . Meat, Meat By-Products, and Meat Food Products Intended for If any table of contents is not specific enough, use the Index to find a topic and If the passenger fails to declare or it appears the passenger intentionally tried to. Mar 13, APHIS makes sure that all imported agricultural products shipped to the United States from abroad meet the Agency's entry requirements to exclude pests and diseases of agriculture. concerns involving plant and animal health - raised by U.S. trading partners. Food and Agricultural Products (Factsheet). Aug 9, Fully finished food products containing milk/milk product and animal-origin vitamins or gelatin that meet the requirements of APHIS import guideline # .. (b) The bones from which the collagen was derived did not include.
Infrastructure developments also have underpinned the uniform product offerings and quality controls that have facilitated the growth of fast-food chains. Falling costs also have resulted in offsetting developments. For example, private labels seek to offer a comparable product to national brands at a lower price point. Their market share now approaches 25 percent IRI, With food costs overall declining toward 10 percent of the average American's disposable income, more meals eaten away from home also have become accessible to more people ERS, a.
One of the most important market developments has been the emergence of futures markets 7 traded on centralized exchanges. Moreover, clearinghouses at these centralized exchanges have eliminated the risk of default, making futures markets an attractive way to hedge or unload unwanted price risks. Changes in Food Prices Food prices are a function of the interaction of supply and demand, which are, in turn, functions of major drivers involving bioavailability land and climateincome of both producers and consumers, the productivity efficiency of crop and livestock production, and the growth in population.
On the supply side, crop production and productivity respond to technology e. The more efficient the production is more output per acre of landthe lower the price of the commodity. The caveat on this price is that the productive units e. If the prices that these suppliers can receive in the market are less than their costs, they will go out of business.
Public policy that encourages more crop production can act to decrease the costs and therefore the price corn and soybeans or decrease competition and increase the price sugar.
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Increased demand for the crops and livestock will increase the price when demand exceeds the supply. On the demand side, consumer income, population growth, and changing tastes and preferences influence food demand. The willingness to pay for more or better quality food rises as income rises. The feedback loop from consumer markets is critical to informing food producers all along the supply chain about the quantity and quality of food that will sell on the market.
Heterogeneous consumer tastes and lifestyles heavily influence the types of food that are demanded in the market. As incomes rise in low- to middle-income populations globally, consumers demand more animal protein and the raising of more livestock demands greater crop production and generally higher prices.
The demand for animal feed is a driver for increased crop production, yet as crop production becomes more efficient, the price per bushel can actually drop.
In addition, the demand for crops used to produce fuel or other nonfood products incents greater supply at higher prices, which also increases the price of the commodity used for food. An important point to understand is that the consumer of raw agricultural commodities is generally not the final consumer, but the supply chain customer e. These agents provide the feedback from final consumers about final demand and willingness-to-pay at the retail point of sale.
Retail competition plays an important role in holding down final prices to consumers, reducing profit margins all along the supply chain. As clearly demonstrated in Figurethe price of food is shaped by many economic sectors beyond agricultural production.
Changes in food processing, marketing, transportation, packaging, and retail sectors now have more impact on consumer food prices than do changes in production practices or variation in farm yields and output.
As the complexity of the food supply chain increases, the price of food consumed by the public will reflect the gains from greater production efficiencies and the costs associated with increased processing and handling.
When food choices are abundant, consumers are likely to substitute among alternatives as the relative prices change. This price and cross-price elasticity of demand 8 influences the intersection of supply and demand and the final food price. In addition, a cycle of over- and undersupply of basic crops and livestock occurs as farmers respond to higher and lower prices in the market.
Typically, they overshoot their estimates of next year's prices, creating an oversupply in the years after prices have been high, which suppresses prices in the current year. This continual adjustment occurs and responds to both global and domestic demands. Price competition among food retailers is one reason why short-term price fluctuations in commodity prices are not fully reflected in the retail store, although over the long run, inflationary pressures will affect consumer food prices.
Food price inflation has traditionally been followed with overall inflation. Figure illustrates the relative stability of food price increases since CPI is a measure of the average change over time in the prices paid by consumers for a market basket of consumer goods and services. Field crop prices are represented more Changes in Consumer Preferences Changes in U.
During the s, with many women entering the workforce for the first time, the food industry used this opportunity to market to women who had less time to cook for their families.
Advances in domestic technologies e. As a result of this and other social trends and changes in consumer attitudes and behavior, over the past 60 years a growing percentage of food in the United States is consumed away from home ERS, a.
Altogether, these changes have likely led to increasingly individualized consumption patterns and larger amounts of added sugars, sodium, and fats in diets. Many changes in food distribution and consumption have been due to the automobile Jakle and Sculle, ; Schlosser, The car quickly transformed the architecture of cities and towns across the country—and gradually located supermarkets in the suburbs and away from urban areas. Additional transformations induced by the car were quick-service restaurants and stores with drive-through windows to speed up sales.
Although the restaurant industry as a whole steadily grew, fast-food businesses in particular exploded during the late 20th century Jakle and Sculle, ; Schlosser, More recently, a study found that the percentage of calories consumed from fast food in adults was lower in 10 percent of calories as compared to 13 percent of calories Fryer and Ervin, Although some 20th-century trends have contributed to a smaller number of foods in American diets, recent decades have seen a resurgence in diversification.
The types of food products and markets available are driven by consumer demands, as they become stimulated by sellers. Alongside commodity, convenience, and staple products, conventional food companies have provided new offerings built around market segmentation and product differentiation.
Perhaps the most significant change in consumption patterns in the 21st century has been remarkable growth in demand for food produced or marketed in ways that are perceived to support the health, environmental, or social equity goals of farmers and consumers, such as organic, free range, fair trade, local, and natural.
Animal welfare concerns have encouraged the development of free-range, cage-free, and grass-fed products.
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New interests, such as gluten free, high fiber, and omega-3, have burst onto the market as a result of consumers' desires for a healthful diet. For example, demand for organic foods in the United States has grown at roughly 20 percent annually ERS, e. Despite potential benefits and safety protections, some customers—especially in Europe—have expressed preferences for food products grown without the use of genetically modified organisms GMOs.
Concurrently, new alternative food marketing and distribution systems have emerged and grown to deliver such products, including farmers' markets, community cooperatives, alternative restaurants, or specialized supermarkets.
Some consumers seem to be paying more attention to perceived risks and giving more weight in buying decisions to suspect sources, processes, or future dangers.
As per-capita incomes rise, the threshold of acceptable risk has appeared to escalate, moving from risk reduction toward avoidance. At the same time, techniques for detecting chemical residues or foreign substances have become more sensitive from parts per million to parts per billion or trillion. Although this led to the Food Quality Protection Act 9 and effectively repealed the Delaney Clause for pesticides, it also has heightened consumer awareness of and sensitivity to foodborne risks.
As described below, government safety policies and risk management strategies by industry e. Globalization As indicated earlier, the U. As recently as the mids, U. At the same time, global trade of grains, rice, oilseeds, meat, and other commodities has grown dramatically, causing interregional interdependencies. Global food trade also is beginning to reflect more specialization along lines of relative resource endowments and comparative advantage.
Regions with abundant land resources e. Labor-intensive agricultural production, such as fruits, vegetables, aquaculture, and horticulture, are being produced in larger amounts for domestic use and for export to labor-scarce regions, such as the United States. Changes in food supply and demand in other countries promise to be a major driver of commodity prices and marketing opportunities for U.
For example, a serious problem in many countries is continuing food insecurity, which can take the form of chronic hunger, periodic food crises, or malnutrition among vulnerable population groups. During much of the 20th century, the drive for greater efficiency in agricultural production yielded a steady decline in inflation-adjusted food prices.
These falling real food prices, in turn, were a major factor in reducing chronic global hunger. By contrast, rising real commodity prices in the first decade of the 21st century has reversed this decline, and it will add as many as million people to the list of the chronically hungry by if the trend continues Runge and Senauer, Moreover, tight supplies produced serious, temporary food crises in andwhich were aggravated by market-disrupting price-control and export-control policies.
The problem of food insecurity for some has been compounded by economic development and increases in per-capita incomes, which have generated an increased preference for animal protein in the diet. Although these dietary shifts reflect strong preferences as disposable income rises, they also add to the challenge of feeding 9 billion people by In addition, urbanization is proceeding at the fastest rate in human history; Africa and Asia are likely to be two-thirds urban within two decades.
In addition, virtually all of the projected global population growth between now and will occur in low-income countries, many of them already crowded. This combination of forces will reshape the food security challenge in critical ways.
Policies The unfolding of market forces in U. The development of local, state, and federal policies to address farm production, food safety, and other public goals has played a pivotal role in the evolution of the current U. Farm Policy Modern farm policy has its roots in the federal response to the Great Depression through the Agricultural Adjustment Act of and its successors. A collapse in both domestic food demand and exports had led to price-depressing surpluses.
The main commodities covered were grains, oilseeds, cotton, rice, and dairy, although marketing orders came to be available for some fruits and vegetables.
This quickly resulted in accumulation of surpluses for those commodities. The farm policy response involved paying farmers and warehousers to store surpluses, paying farmers to reduce their production by idling land or culling herds and paying for surplus disposal through domestic food programs e.
As costs of this strategy mounted, the Kennedy administration conducted a farm referendum in to see whether farmers would accept mandatory production controls Cochrane and Runge, When that referendum failed, farm policy began a process of separating income supports from commodity prices in the marketplace. In the s, political support for farm programs was sustained by broadening the scope of an omnibus legislation to include support for farmers as well as food and nutrition programs designed to address problems and priorities of urban legislators.
The ensuing decades witnessed a sequence of policy shifts that shaped the development of the nation's farm and food industries. During the s, rapid growth in global market opportunities and rising commodity prices led to policy reforms to remove caps on acreage that could be planted with particular crops.
When production exceeded demand, market prices for farm commodities were allowed to fall, which benefited food processors and consumers. Meanwhile, federal payments were mainly used to compensate producers for the gap between the market and a designated target price for their products. In the s, efforts to renew farm programs faltered, and environmental advocates succeeded in tying support for farmers to the expansion of programs to incentivize conservation of soil and natural resources.
This experiment was short lived, as severe market downturns led to the restoration of price supports, emergency payments, and other income protection programs for farmers on top of the continued direct payment programs. Farm policy changed course with passage of the Agricultural Act of 13 Farm Actwhich was signed on February 7,and will remain the law until It makes major changes in commodity programs, adds new insurance options, consolidates conservation programs, and expands programs for specialty crops, organic farmers, bioenergy, rural development, and beginning farmers and ranchers.
Price and income support for farmers is now provided primarily through an elaborate suite of subsidized insurance programs.
The Act also eliminates the controversial direct payments to farmers and most countercyclical price programs.
Although the law reauthorizes SNAP, it tightens the criteria for participation. The Act passed after a 2-year delay, in part as a compromise between rural and urban interests and in part because a reversion to so-called permanent farm law was feared to be highly disruptive.
Environmental Policies Environmental policies are an increasingly important driver of the evolution of the U.
Traditional farm policies have tended to subsidize farm production while reducing the risks of farming on marginal lands and drought- or flood-prone areas. These approaches have tended to aggravate the environmental stresses that agriculture imposes on land and water resources, and the costs of these externalities are not usually captured in the price consumers pay for their food Buttel, b.
USDA's approach has focused on voluntary programs and public investments that provide technical and financial assistance to encourage farmers to adopt practices that minimize soil erosion and other environmental impacts. Current programs also provide cost-share incentives for adopting or maintaining environmentally sound practices under the Environmental Quality Incentives and the Conservation Stewardship Programs.
The funding of these initiatives often has lagged behind the intent of the authorizing measures Cochrane and Runge, Still, some success can be appreciated in the expansion of land under restoration initiatives, the investments in joint ventures where USDA helps with technical assistance and capacity building in sustainable practices, and investments in research.
The Farm Act reduced funding for the Conservation Reserve Program, consolidated conservation programs, and linked crop insurance premium subsidies to conservation compliance. Debates among agricultural producers, environmental groups, and rural communities in regard to the strictness of the policies to manage animal waste by concentrated animal feeding operations CAFOs 14 continue.
As with other environmental policies, national guidelines are set up by EPA whereas the states are charged to address specific issues and are responsible for preventing and reducing environmental pollution.
This decentralized approach allows flexibility to respond to unique local industry and resource conditions, but also allows standards to vary from state to state. Such issues are receiving greater attention from nutritionists and health economists in part because of the life-time costs of treating associated conditions such as diabetes and hypertension.
Also, these policies have aided gains in life expectancy achieved in the last few decades by reducing the rate of premature deaths due to obesity and chronic diseases. By contrast, food policies for developed countries should encourage lower consumption of energy-dense foods such as those high in dietary fat and sugarswhile promoting higher intakes of dietary fiber for improving health. The primary arenas of federal involvement in food policy include agriculture, nutrition assistance, food safety, dietary guidance, and labeling.
Industry initiatives and the work of advocacy organizations that affect food policy are also addressed in this section. Most food policies are developed incrementally, often in reaction to changed circumstances, political climates, or needs. Executive Branch[ edit ] The Food and Drug Administration is the federal agency that is responsible for ensuring the safety of food products, with the exception of meat, poultry, an processed eggs.😱 10 Foods Made in China You Must Avoid (Filled with Plastic and Cancer Causing Chemicals)
The various offices within the FDA carry out the agency's unified food program that protects and promotes the public health through the following activities: Ensuring the safety of foods for humans, including food additives and dietary supplementsby setting science-based standards for preventing foodborne illness and ensuring compliance with these standards Ensuring the safety of animal feed and the safety and effectiveness of animal drugs, including the safety of drug residues in human food derived from animals Protecting the food and feed supply from intentional contamination Ensuring that food labels are truthful and contain reliable information consumers can use to choose healthy diets.
MyPlate illustrates the proportions of each food group which should be present at each meal. The United States Department of Agriculture has a broad range of interests involved in food policy. The Food Safety and Inspection Service FSIS is responsible for making sure that the United States' commercial supply of meat, poultry, and egg products is safe, wholesome, and correctly labeled and packaged.
The food groups of fruits, vegetables, grains, protein foods, and dairy are each allotted a certain amount of space on the plate, showing the public the proportional amounts of each food they should be eating during each meal. Legislative Branch[ edit ] With authority over the nation's annual budget, Congress also plays a role in the formulation of food policies, particularly around issues related to farming and nutrition assistance. The budget and appropriations committees of each house also play a role.
When a program or policy is subject to mandatory spending requirements, meaning that congressional budget committees must fully fund the program for all who meet eligibility criteria, it is the authorizing agriculture committees in both houses that have the power to define the scope of eligibility for the programs.
Programs that are not considered mandatory are considered discretionary spending programs, and power over the bottom line is in the hands of the appropriations committees of each house charged with setting annual spending levels. Supreme Court has been involved in numerous decisions that have affected food policy around trade and patent concerns,  food safety,  and labeling.
Food policy - Wikipedia
Examples include initiating lawsuits against real estate developers who do not include recreational facilities in their designs, school boards that allow exclusive vending rights to soft drink companies, and manufacturers of non-nutritious foods. United States farm bill From a public finance point of view, the two most costly undertakings of the federal government are spending on nutrition assistance and farm subsidy programs, both governed in an omnibus farm bill that is refashioned every five years.
Nutrition assistance is by far the costliest food policy program in the nation, followed by farm subsidies. The role of agricultural concerns and nutrition assistance are described in more detail below. Agricultural policy of the United States Government interventions in the agricultural economy influence the quantities produced and price of food. Updated every five years, the United States farm bill specifies the type of policy instruments that will be funded in a given cycle and at what cost.
Crop insurance is the most expensive of the federal farm subsidies, followed by conservation policies and commodity supports. The primary demand expansion program supported by the federal government through the Department of Agriculture is known as the commodity checkoff program.
It is responsible for a series of familiar advertising campaigns to create higher demand for commodity products such as milk, beef, pork, and eggs.
Familiar slogans from these campaigns include " Got Milk? Checkoff programs do not exist for some of the healthier foods grown and produced in the U.
Nutrition assistance[ edit ] Ensuring adequate food for families and individuals living in poverty is also a centerpiece of any nation's food policy efforts.
Regulation of the U.S. Food Processing Sector
In the United States, this aid primarily takes the form of monthly benefits that are calculated based on family income, adjusted for certain deductible living expenses and household size, and can only be used for the purchase of foods. The program known for decades as "food stamps" was revamped and renamed Supplemental Nutrition Assistance Program SNAP in to acknowledge the change from paper food stamps to electronic benefit transfer or EBT cards.
SNAP is a mandatory spending program;  the government must designate funds for the program sufficient to cover benefits for all who meet the eligibility requirements. In fiscal year Revisions to the program were made under President Lyndon B. Johnson with the enactment of the Child Nutrition Actwhich integrated the school lunch programming with the Special Milk Program and launched a new national School Breakfast Program.
Numerous studies have confirmed a link between school performance and the school breakfast program. Nutrition standards for school breakfasts and lunches were revised for the first time in 15 years through the passage of the act to align them more closely with the Dietary Guidelines for Americans.
Older Americans[ edit ] Concerns about senior citizens living in poverty in the s led to the establishment of the Elderly Nutrition Program ENP in The program is periodically re-authorized under the Older Americans Act and is administered by the U.
The primary activity funded under Title III is the preparation and serving of nutritious meals for adults over the age of 60 and their spouses. Title III-A provides funding for tribal organizations to provide similar meal services. The meals are distributed through two mechanisms: Homebound seniors receive one meal per day several fresh and frozen meals may be included in a single deliveryand communities that offer congregate meals are encouraged to offer a meal at least five times per week.