The food industry

In developing countries, many families produce their own food or buy food from local farmers. In developed countries, however, most people depend on the food industry. This section describes the food industry in the United States. However, much of the information also applies to the food industries in Canada and other developed countries.

The food industry consists of all the activities involved in producing food and getting it to consumers. The main branches of the industry include production, processing, packaging, transportation and marketing. Government regulations cover each branch and help assure consumers of safe, good-quality products. In addition, food companies and other organizations conduct research to increase the food supply and to improve food products.

The food industry is one of the largest industries in the United States. About 3 million Americans, including self-employed farmers, work on farms to produce basic foods. Food-processing plants employ more than one and a half million workers to prepare and package foods for the market. Millions of other workers are involved in the transporting and marketing of food.

Each branch of the food industry contributes to the prices of foods in the market place. The prices reflect the cost of producing the basic food as well as the processing, packaging, transportation and marketing costs. All these costs, plus the profits of each branch of the industry, are paid by consumers.

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