Agriculture Reference
In-Depth Information
Much of the U.S. produce industry is concentrated geographically in just a few
states. For example, in 2006 California accounted for 51% of the value of fresh-market
vegetables produced in the United States. Large fi rms that provide a year-round or
extended-season supply dominate in these areas. Many smaller growers produce fruit
and vegetables seasonally in other states, often for local markets. Spinach demon-
strates this concentration. In 2005, 75% of the U.S. fresh-market supply of spinach
grew in California (Fig. 22.4), with 54% of the U.S. total grown in the three adjacent
counties of Monterey, Santa Clara, and San Benito. Arizona, Texas, New Jersey,
Colorado, and Maryland combined to account for about 25% of the 2005 fresh-market
spinach production. These statistics come from the USDA's Agricultural Marketing
Service, which records shipments just from the largest production area, unlike the U.S.
Census, which records all production areas.
Today, fresh fruit and vegetable products move quickly from producing regions
directly or via market intermediaries to retail and food-service buyers (Calvin and
others 2001). Retail consolidation has resulted in shipper consolidation. Retailers and
food-service buyers do not want to deal with a large number of small shippers when
a few larger shippers could supply their needs. As both retailers and shippers consoli-
date, it has become easier to specify desired production practices to obtain a uniform
product. Some, but not all, of this coordination has been achieved through increased
use of contracting and vertical integration within the marketing and procurement
channel.
Industry structure has several implications for food safety. It is generally easier to
get major players to cooperate in a food safety initiative when production is concen-
trated in a state. Crossing state lines may involve more types of growers, different
production practices, and less agreement on issues. The LGMA illustrates these chal-
lenges. The voluntary marketing agreement in California had virtually 100% participa-
tion in its fi rst year. Arizona also initiated a similar marketing agreement. Many of
Texas, New Jersey,
Colorado, and Maryland
9%
Arizona
16%
California counties of
Monterey, Santa
Clara, and San
Benito
54%
21%
Rest of
California
Figure 22.4.
U.S. fresh-market spinach production, 2005.
Sources:
USDA—National
Agricultural Statistics Service and California Agricultural County Commissioners' data.
