Connect with us

Business

Corporate concentration in the US food system makes food more expensive and less accessible for many Americans

Avatar

Published

on

Associate Professor of Community Sustainability, Michigan State University
Associate Professor of Rural Sociology, University of Missouri-Columbia
Philip H. Howard is a member of the International Panel of Experts on Sustainable Food Systems, and a member of the Rural Sociological Society. He has received funding from the National Science Foundation and the US Department of Agriculture.
Mary Hendrickson is a member of the Rural Sociological Society, Agriculture Food and Human Values Society, and serves on the North Central Region SARE Administrative Council. She has received funding from USDA's National Institute of Food and Agriculture, USDA's Sustainable Agriculture and Research Program and various foundations.

Michigan State University provides funding as a founding partner of The Conversation US.
View all partners
Agribusiness executives and government policymakers often praise the U.S. food system for producing abundant and affordable food. In fact, however, food costs are rising, and shoppers in many parts of the U.S. have limited access to fresh, healthy products.
This isn’t just an academic argument. Even before the current pandemic, millions of people in the U.S. went hungry. In 2019 the U.S. Department of Agriculture estimated that over 35 million people were “food insecure,” meaning they did not have reliable access to affordable, nutritious food. Now food banks are struggling to feed people who have lost jobs and income thanks to COVID-19.
As rural sociologists, we study changes in food systems and sustainability. We’ve closely followed corporate consolidation of food production, processing and distribution in the U.S. over the past 40 years. In our view, this process is making food less available or affordable for many Americans.
Consolidation has placed key decisions about our nation’s food system in the hands of a few large companies, giving them outsized influence to lobby policymakers, direct food and industry research and influence media coverage. These corporations also have enormous power to make decisions about what food is produced how, where and by whom, and who gets to eat it. We’ve tracked this trend across the globe.
It began in the 1980s with mergers and acquisitions that left a few large firms dominating nearly every step of the food chain. Among the largest are retailer Walmart, food processor Nestlé and seed/chemical firm Bayer.
Some corporate leaders have abused their power – for example, by allying with their few competitors to fix prices. In 2020 Christopher Lischewski, the former president and CEO of Bumblebee Foods, was convicted of conspiracy to fix prices of canned tuna. He was sentenced to 40 months in prison and fined US$100,000.
In the same year, chicken processor Pilgrim’s Pride pleaded guilty to price-fixing charges and was fined $110.5 million. Meatpacking company JBS settled a $24.5 million pork price-fixing lawsuit, and farmers won a class action settlement against peanut-shelling companies Olam and Birdsong.
Industry consolidation is hard to track. Many subsidiary firms often are controlled by one parent corporation and engage in “contract packing,” in which a single processing plant produces identical foods that are then sold under dozens of different brands – including labels that compete directly against each other.
Recalls ordered in response to food-borne disease outbreaks have revealed the broad scope of contracting relationships. Shutdowns at meatpacking plants due to COVID-19 infections among workers have shown how much of the U.S. food supply flows through a small number of facilities.
With consolidation, large supermarket chains have closed many urban and rural stores. This process has left numerous communities with limited food selections and high prices – especially neighborhoods with many low-income, Black or Latino households.
As unemployment has risen during the pandemic, so has the number of hungry Americans. Feeding America, a nationwide network of food banks, estimates that up to 50 million people – including 17 million children – may currently be experiencing food insecurity. Nationwide, demand at food banks grew by over 48% during the first half of 2020.
Simultaneously, disruptions in food supply chains forced farmers to dump milk down the drain, leave produce rotting in fields and euthanize livestock that could not be processed at slaughterhouses. We estimate that between March and May of 2020, farmers disposed of somewhere between 300,000 and 800,000 hogs and 2 million chickens – more than 30,000 tons of meat.
What role does concentration play in this situation? Research shows that retail concentration correlates with higher prices for consumers. It also shows that when food systems have fewer production and processing sites, disruptions can have major impacts on supply.
Consolidation makes it easier for any industry to maintain high prices. With few players, companies simply match each other’s price increases rather than competing with them. Concentration in the U.S. food system has raised the costs of everything from breakfast cereal and coffee to beer.
As the pandemic roiled the nation’s food system through 2020, consumer food costs rose by 3.4%, compared to 0.4% in 2018 and 0.9% in 2019. We expect retail prices to remain high because they are “sticky,” with a tendency to increase rapidly but to decline more slowly and only partially.
We also believe there could be further supply disruptions. A few months into the pandemic, meat shelves in some U.S. stores sat empty, while some of the nation’s largest processors were exporting record amounts of meat to China. U.S. Sens. Elizabeth Warren, D-Mass., and Cory Booker, D-N.J., cited this imbalance as evidence of the need to crack down on what they called “monopolistic practices” by Tyson Foods, Cargill, JBS and Smithfield, which dominate the U.S. meatpacking industry.
Tyson Foods responded that a large portion of its exports were “cuts of meat or portions of the animal that are not desired by” Americans. Store shelves are no longer empty for most cuts of meat, but processing plants remain overbooked, with many scheduling well into 2021.
In our view, a resilient food system that feeds everyone can be achieved only through a more equitable distribution of power. This in turn will require action in areas ranging from contract law and antitrust policy to workers’ rights and economic development. Farmers, workers, elected officials and communities will have to work together to fashion alternatives and change policies.
The goal should be to produce more locally sourced food with shorter and less-centralized supply chains. Detroit offers an example. Over the past 50 years, food producers there have established more than 1,900 urban farms and gardens. A planned community-owned food co-op will serve the city’s North End, whose residents are predominantly low- and moderate-income and African American.
The federal government can help by adapting farm support programs to target farms and businesses that serve local and regional markets. State and federal incentives can build community- or cooperative-owned farms and processing and distribution businesses. Ventures like these could provide economic development opportunities while making the food system more resilient.
[Deep knowledge, daily. Sign up for The Conversation’s newsletter.]
In our view, the best solutions will come from listening to and working with the people most affected: sustainable farmers, farm and food service workers, entrepreneurs and cooperators – and ultimately, the people whom they feed.
Write an article and join a growing community of more than 120,900 academics and researchers from 3,901 institutions.
Register now
Copyright © 2010–2021, The Conversation US, Inc.

source

Continue Reading
Advertisement
Comments

Business

What the $25 billion the biggest US donors gave in 2020 says about high-dollar charity today

Avatar

Published

on

Associate Professor of Public Administration, Binghamton University, State University of New York
Assistant Professor of Nonprofit Leadership, Seattle University
Associate Professor of Public Policy and Public Administration, George Washington University
David Campbell is vice chair of the Conrad and Virginia Klee Foundation in Binghamton, New York.
Elizabeth J. Dale has received funding from the Ford Foundation, the Bill & Melinda Gates Foundation via Indiana University and The Giving USA Foundation for her research on philanthropy. The views expressed in this essay are strictly my own and do not reflect policy stances of Seattle University.
Jasmine McGinnis Johnson is a Visiting Fellow at Urban Institute, the Center on Nonprofits and Philanthropy.

Binghamton University, State University of New York provides funding as a founding partner of The Conversation US.
View all partners
Editor’s note: According to The Chronicle of Philanthropy, the top 50 Americans who gave the most to charity in 2020 committed to giving a total of US$24.7 billion to hospitals, homeless shelters, universities, museums and more – a boost of roughly 54% from 2019 levels. David Campbell, Elizabeth Dale and Jasmine McGinnis Johnson, three scholars of philanthropy, assess what these gifts mean, the possible motivations behind them and what they hope to see in the future in terms of charitable giving in the United States.
Campbell: Pandemic. Pandemic. Pandemic. The share of giving that went to social service nonprofits, food banks and homelessness assistance groups rose sharply. At the same time, performing arts organizations, largely shut down as a result of the pandemic and starved of revenue from ticket sales, received more support from big donors in 2020 than in 2019, with charitable gifts and pledges to them increasing to $65 million from $51 million.
McGinnis Johnson: Likewise, Racial justice. Racial justice. Racial justice.
For example, basketball legend Michael Jordan declared that he would personally give at least $50 million to racial equity and education causes over the next decade, with his footwear and clothing company kicking in another $50 million. Also, Netflix CEO Reed Hastings and his wife Patty Quillan gave a total of $120 million divided into three equal gifts to Morehouse College, Spelman College and UNCF – the group previously called United Negro College Fund that pays for students to attend historically black colleges and universities. Neither Jordan nor Hastings and Quillan, who said their increased awareness about the country’s racial injustices and the deaths of Black people in police custody inspired them to give, made the Chronicle’s list of top donors in 2019.
These and other unusually large gifts taking aim at racial injustice, and other forms of social injustice (not counting HBCU donations), totaled $66 million in 2020. But I had anticipated that there would be even more of this giving by the biggest donors.

Dale: In particular, MacKenzie Scott – Jeff Bezos’ ex-wife – made many gifts to HBCUs. These donations included $50 million for Prairie View A&M University, North Carolina Agricultural and Technical State University and Morgan State University. In addition to racial justice, her philanthropy has raised the profile of causes like civic engagement, community development and the need to address the medical debt crisis in the U.S. Scott was the second-largest donor for the year, after Bezos. Combined, their commitments totaled nearly $16 billion. Neither made the top 50 in 2019.
Until now, the ultra-rich haven’t typically supported causes like these. Instead, extremely wealthy donors have historically been more inclined to fund higher education and health care, largely with big donations to elite universities, hospitals and arts institutions like museums and operas.
The other aspect that strikes me is the “who” part of the list. There are many new faces: Eight of the 20 top donors didn’t make an appearance on the Philanthropy 50 list for their 2019 giving.

McGinnis Johnson: A total of about $14 billion of this giving went to foundations led by the givers themselves and donor-advised funds, which work somewhat like foundations in that donors set money aside for charity before they actually give those funds to nonprofits. When wealthy people set aside money this way, they receive tax benefits before giving those funds. In a troubling development, some foundations have begun to put some of their disbursed money, which was already designated for charity, into donor-advised funds rather than addressing today’s many urgent needs, such as alleviating hunger and staving off evictions amid a major economic crisis.
Dale: This list reminds me of the limits of philanthropy, especially with a problem as widespread as the COVID-19 pandemic. Even if you add all of the social service gifts together, including donations to food banks, efforts to help the homeless and gifts to pay off medical debt, it adds up to only about $700 million. Compared to the trillions of dollars in relief the government is providing individuals and small businesses for economic problems that began in 2020, you can see that philanthropy from the very wealthiest Americans doesn’t come close to meeting all of the nation’s needs.
One possible way Congress could encourage more donations is by increasing the share of assets that foundations must give away every year. A coalition of wealthy donors including Walt Disney Co. heiress Abigail Disney and at least two members of the Pritzker family – heirs to the Hyatt fortune – supports this change.

McGinnis Johnson: I think that major gifts in support of racial and social justice causes may continue. I also expect to see the emergence of new donors spurred on by these crises who can give in new and different ways. And I hope that more wealthy donors begin to pay more attention to leadership, by supporting organizations led by people of color.
Campbell: Donors like MacKenzie Scott and Susan Sandler – the heir to a fortune made in the home-mortgage business – and some foundations are going out of their way to invest in people, places and organizations that have long been ignored or marginalized.
Also, their public statements about their giving, along with Twitter CEO Jack Dorsey’s spreadsheet listing his donations, have raised the bar for transparency in philanthropy.
I believe these new approaches can engage the public in an ongoing debate about the best way to use charitable dollars to build a better world. The question is, will other wealthy donors follow their lead?
Write an article and join a growing community of more than 121,000 academics and researchers from 3,904 institutions.
Register now
Copyright © 2010–2021, The Conversation US, Inc.

source

Continue Reading

Business

New steps the government’s taking toward COVID-19 relief could help fight hunger

Avatar

Published

on

Associate Professor of Political Science, University of Richmond
Tracy Roof does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

University of Richmond provides funding as a member of The Conversation US.
View all partners
President Joe Biden has pledged to tackle hunger as part of his administration’s efforts to alleviate poverty.
“We cannot, will not let people go hungry,” Biden declared on his second full day in office, invoking the “values of our nation.”
One way his administration aims to accomplish this goal is by expanding the Supplemental Nutrition Assistance Program, the country’s largest anti-hunger program. I’m researching this program, long known as food stamps but today referred to as SNAP, for an upcoming book. The program helps struggling families while boosting the economy during downturns.
As Biden’s presidency gets underway, I’m watching to see not only whether the government expands the amount of aid this program provides people in need today, but whether there are lasting changes to SNAP and other anti-poverty policies that could reduce hunger in the future.
Unlike the Trump administration, Biden’s team is eager to find ways to maximize the use of SNAP to fight poverty during the pandemic and beyond.
Former President Donald Trump criticized the large number of people who remained on SNAP after the last recession, which occurred partly because poverty rates remained high even as unemployment went down. Believing that the program discouraged work, Trump repeatedly tried but failed to limit who could get SNAP.

After the COVID-19 pandemic hit, the number of people enrolled in SNAP soared again. Spending on the program surged even more because the government temporarily let all beneficiaries get the maximum amount of benefits.
Government aid through SNAP totaled a record US$85.6 billion in the 12 months that ended Sept. 30, 2020. That money helped feed around 44 million people, up from 35 million a year earlier.
But until recently there was no extra help for the roughly 40% of the people who were already getting the maximum benefits because of their very low incomes. Congress changed that when it approved a 15% increase for all SNAP recipients as part of the December 2020 $900 billion relief package. That benefits boost started the following month.

Despite SNAP’s expansion and additional aid flowing to food banks from government assistance and many high-profile donations to food banks and food pantries by some of the richest Americans, hunger has remained a problem throughout the pandemic.
By January 2021, a government survey found that some 11% of adults, and more than 1 in 7 of all U.S. households with children, said they were having trouble getting enough to eat – well above pre-pandemic levels. The problem is even worse for people of color.
Along with the 15% increase in SNAP benefits Congress approved in December 2020, which initially was to last for six months, were changes to make it easier for college students and those on unemployment benefits to get SNAP.
Biden wants to offer Americans who face economic hardship additional help. He has proposed extending the SNAP increase for at least another three months, through September 2021. Further, he has pledged to work with Congress to tie benefit increases to the health of the economy and the people so that Congress would not have to take action for extra help to kick in.
If Congress adopted such an approach, I believe vulnerable families would no longer be at the mercy of the kind of political squabbling that has delayed additional help during the pandemic.
Biden also signed an executive order directing federal agencies to try to do more for the poorest families through SNAP. In addition, his administration is trying to make it easier for states to send more help to families with children who are missing free or reduced-price meals at school or who are too young to attend.
The proposed SNAP changes are among many temporary benefit increases Biden and others have recently outlined, such as in unemployment benefits and new tax credits for families with children.
Columbia University researchers estimate that a combination of Biden’s proposals could reduce poverty in 2021 by almost 30% and halve the number of U.S. children living in poverty. If successful, this could launch a longer-term transformation in anti-poverty policies.
Many advocates of policies that help the poor have long argued that SNAP benefits are too stingy to provide enough nutritious food for an adequate diet.
On average, people on SNAP use over three-fourths of their benefits by the middle of the month – even in a strong economy. As a result, many SNAP recipients run out of benefits and regularly turn to food banks. In fact, more than 40% of food bank clients are enrolled in SNAP.
Why don’t these benefits fill more gaps?
Technically, food stamp recipients are expected to spend 30% of their own income on food. If they have income, as most SNAP recipients do, their benefits are calculated by reducing the maximum benefit for their family size by 30% of the value of their income after deductions for things like child care. But many financially stressed families don’t feel they can afford to spend that much on food.
Another problem is how the maximum benefit is set. It is based on the cost of the Thrifty Food Plan, devised by the Department of Agriculture in 1975 as “a national standard for a nutritious diet at a minimal cost.”
Despite changes to reflect new official nutritional recommendations, the government has maintained the same inflation-adjusted cap on spending in place for decades. As a result, the plan relies on unreasonable and outdated assumptions that underestimate average meal costs, especially in areas with high food prices.
One of Biden’s executive orders instructs the USDA to carry out an until-now overlooked mandate that could fix this problem, potentially increasing the amount of SNAP benefits during good times and bad.
To be sure, it’s unclear what will happen with SNAP benefits.
Presidents have often used emergencies to make lasting policy changes, but big expansions in anti-poverty programs have historically been passed with large Democratic majorities in Congress as in the New Deal in the 1930s and the War on Poverty in the 1960s.
[Deep knowledge, daily. Sign up for The Conversation’s newsletter.]
Today, the Senate is evenly split, with Democrats wielding control through Vice President Kamala Harris’ vote in that chamber. The Democratic majority in the House is also narrow.
Just as Trump failed at his efforts to cut many anti-poverty programs, Biden may not succeed in expanding them. But his proposed changes reflect a big shift in how the government uses policies to help Americans in need.
Write an article and join a growing community of more than 120,900 academics and researchers from 3,903 institutions.
Register now
Copyright © 2010–2021, The Conversation US, Inc.

source

Continue Reading

Business

Mothers who earned straight A’s in high school manage the same number of employees as fathers who got failing grades

Avatar

Published

on

Assistant Professor of Sociology, University of North Carolina – Charlotte
Assistant Professor of Sociology, University of British Columbia
The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

University of British Columbia provides funding as a founding partner of The Conversation CA.
University of British Columbia provides funding as a member of The Conversation CA-FR.
View all partners
The Research Brief is a short take about interesting academic work.
Mothers who showed the most academic promise in high school have the same leadership opportunities as fathers who performed the worst, according to our new peer-reviewed study. That is, in their early-to-mid careers, mothers who got straight A’s end up overseeing a similar number of employees as men who got F’s.
To reach these conclusions, we used a U.S. national survey that since 1979 has tracked a group of baby boomers born from 1957 through 1964. We focused on the 5,000 or so participants for whom researchers obtained high school transcripts and then compared the data with their responses to career-focused surveys taken over an 11-year period from 1988 to 1998 – a period when most of them were in their 30s.
Overall, our results showed that men manage more employees than women regardless of their GPA. For participants without children, the leadership gap between men and women was fairly constant across GPA levels, with men managing about two to three workers more on average.
What was most interesting to us is what we learned when we focused only on parents. Fathers with 4.0 GPAs reported overseeing an average of 19 people, compared with 10 for childless men with similar grades and about five for fathers with a 1.0 or less. In contrast, the best-performing mothers managed fewer than five people, compared with seven for childless women with top GPAs and three for mothers with the worst grades.

In other words, becoming a parent boosts leadership opportunities for men while diminishing them for women. Even attaining a college or advanced degree had the same effect, helping fathers but doing little for mothers. Other research reveals that men have a faster route to leadership positions across occupations, including in stereotypically feminine fields such as human resources and health care.
Recent economics research has highlighted “lost Einsteins” – the really smart students from poor families who never become inventors because they don’t receive the same advantages and support that even low-achieving kids from rich families do.
The same can be said for women, whose talents have long been underutilized by corporate America. Our research showed that even the most talented and brightest women experience diminished leadership prospects on account of gender-related barriers, especially if they became mothers.
But the problem isn’t motherhood or fatherhood per se. Past research has shown it’s more about how society views mothers and fathers and the associated stereotypes that contribute to gendered outcomes. For example, fathers could be getting more leadership opportunities because employers stereotype them as better fits for positions that emphasize authority, long work hours and travel. Mothers, on the other hand, may see fewer chances because employers falsely believe they are less committed or competent.
Employers could help overcome this problem by reviewing how they evaluate workers and adopting fairer promotion practices that are more likely to recognize women’s talent. More family-friendly policies such as paid leave and subsidized child care could also help.
Given the limits of our sample, we do not know how our findings translate to younger groups, such as millennials. But given that progress toward equality in the workplace has slowed or even stalled on certain measures in recent decades, we believe it’s likely that the leadership prospects of academically gifted women haven’t improved much.
COVID-19 has harmed women’s employment and productivity more than men’s, particularly among parents because of a lack of child care support. We plan to conduct additional research to better understand how women’s leadership opportunities may have been affected by the pandemic.
[Deep knowledge, daily. Sign up for The Conversation’s newsletter.]
Write an article and join a growing community of more than 120,900 academics and researchers from 3,901 institutions.
Register now
Copyright © 2010–2021, The Conversation US, Inc.

source

Continue Reading
Advertisement
Advertisement