Monday, September 9, 2013

American Food Distribution: What Is Next?

Image Courtesy: http://www.fns.usda.gov
Based on statistical data that was taken from a New York Times article, the citizens of the United States would eat 31% more foods that are processed compared to people from other countries. One factor that contributes to this is the system that food dispersal chains use. The typical food product would be transported at around 5,000 miles prior to reaching the consumers. Since this is the case, the food is packaged and prepared for long distance shipping.

The present trends which the wholesale food distributors see would give the impression that the system of food distribution over long distances is designed to be delayed. Heightened consumer demand for organic food that is produced regionally, combined with a rekindled interest in staying in urban cores and increasing prices of gas, accumulatively suggest that American food dispersal networks will eventually have to evolve to cater to these and other changing economic and lifestyle trends.

Consumers in the United States Want Fresher Food

A core driver behind the possible redesigning of the food distribution chains is shifting customer preferences. The past few years have witnessed an upward spike in the demand for organic food that is fresh. The expansion of the organics industry in America has provided some information:

-    Since 1990, the organics market of America has earned so much revenue. Their food dispersal teams have reported a jump from a billion dollars to $26.7 billion. This amazing expansion is amplified by what the Whole Foods Market earns, which had a 35% increase in profit from the period between 2007 and 2001. All of this in spite of a lowered economy.

When all of this information is put together, they give a sign that the wholesale food distributors should adapt a system that caters to the manufacturers of local organic food. As an example, the markets in Europe support this initiative by assisting the farmers markets and the local farmers as well.