Cheers to Some Economic Bright Spots

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Without a crystal ball, it’s impossible to know just when the food industry will recover from economic stress.  As of right now, there are a few promising signs of a turnaround.  According to the Foodservice Equipment & Supplies website, in December 2009, “the National Restaurant Association’s comprehensive index of restaurant activity rose to its highest level in 22 months”.

But according to various news reports, there are a few industries that have done pretty well despite the general economic stress.  Some of them just make sense:

Food Processing

  • Includes companies such as General Mills and Hershey
  • Provides jobs for 14 million workers
  • Adds over $1 trillion to US economy
  • More people are eating and cooking at home,
  • Companies are making their products more affordable to appeal to consumers

(Information courtesy of article by Mark Crawford for AreaDevelopment.com)

Agriculture

  • Trade surplus for the past 47 years
  • “Shores up food supply while ensuring a safe, plentiful food supply”
  • “There will always be a demand for food grown and packaged here in America”

(Information courtesy of article by Lynn Finnerty for NaturalResourceReport.com)

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…But others might surprise you:

Beer Industry

  • Provides “95,000 quality jobs with solid wages and great benefits in every state and congressional district across the country”
  • Transparent and accountable industry, promote safe and responsible policies
  • Contributes approximately $200 billion to US economy
  • Generates “more than $25 billion in economic activity in agricultures and manufacturing sectors

(Information courtesy of Flex-News-Food.com)

Pet Food and Grooming

  • Pet spas and bakeries experiencing growth
  • “The shift in people’s values about pets has created a market that is relatively recession-proof” (Rottersman, Florida Weekly)
  • Loyal pet owners want to give their furry friends the food to which they’ve become accustomed
  • According to Deb Dempsey, owner of Mouthfuls dog treats and toy shop in Denver, “”We have so many customers who say they’d eat macaroni and cheese before they’d cut back on their dogs” (Migoya, Denver Post)

I guess with man’s best friend by your side and an ice-cold brew in your hand, the American dream is that much more real, and the recession is that much easier to bear.

In US Food Industry, Cheap Can Be Tricky

Grocery Shopping
Any American can tell you that competition is key in a strained economy – for jobs, for the lowest prices, etc.  The claws are out as people across the country go to extremes to make and save money.  It’s not just the individuals who are competing, but the American businesses, as well.

Recently, competitive juices have been poisoning the ethics of the food industry.  The issue of “food fraud” is on the rise as aggressive strategies turn to deceit.  Food fraud is when food items are sold under false claims.  A number of reputable publications including the Washington Post and Newsweek have explored the aggravation of the issue during the recession.  An eye-opening article by Lyndsey Layton in the Washington Post highlights a few sneaky examples:

“The expensive ‘sheep’s milk’ cheese in a Manhattan market was really made from cow’s milk. And a jar of ‘Sturgeon caviar’ was, in fact, Mississippi paddlefish. Some honey makers dilute their honey with sugar beets or corn syrup, their competitors say, but still market it as 100 percent pure at a premium price.”

(image courtesy of http://www.dreamstime.com/royalty-free-stock-photo-gourmet-food-collage-image3333785)
(image courtesy of http://www.dreamstime.com/royalty-free-stock-photo-gourmet-food-collage-image3333785)

According to Helena Bottemiller of Food Safety News, Food scammers have tricked not only shoppers, and but also big distribution companies like Heinz USA.  According to Brandon Glenn of Med City News, an estimated 5 to 7 percent of US food supply is involved in food fraud.

Fast-paced global trade and the growing demand for cheaper food have intensified the problem, and the FDA is feeling the heat as American urge them to crackdown on product labeling and authentification.  This is where technology comes in: advanced DNA testing allows scientists to compare products to a database of samples to prove their legitimacy.  Unfortunately, Newsweek reports, the FDA doesn’t have the resources to inspect the majority of the foods in the American supply.  Looks like we as consumers have to stay on our toes.

So don’t let your bargain obsession impair your judgment – if that sweet deal for gourmet treats looks too good to be true, it probably is.