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AGRICULTURE AND FOOD PRODUCTION IN ARKANSAS

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Steven C SeidemanSteven C Seideman

Extension Food Processing SpecialistExtension Food Processing Specialist

Cooperative Extension ServiceCooperative Extension Service

University of ArkansasUniversity of Arkansas

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HISTORY*The longevity of humans began to increase in about *The longevity of humans began to increase in about

1200 AD when mankind began to domesticate 1200 AD when mankind began to domesticate plants and animals.plants and animals.

*This domestication was probably the single most *This domestication was probably the single most important event in the history of the mankind.important event in the history of the mankind.

*In the latter half of the 1800s, many states *In the latter half of the 1800s, many states established Land-Grant Colleges whose purpose established Land-Grant Colleges whose purpose was to conduct research and teach agriculture.was to conduct research and teach agriculture.

*In the early 1900s, the Cooperative Extension *In the early 1900s, the Cooperative Extension Service was established to disseminate agriculture Service was established to disseminate agriculture knowledge to producers.knowledge to producers.

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History

The establishment of Land-Grant colleges, The establishment of Land-Grant colleges, the Experiment Station and the Cooperative the Experiment Station and the Cooperative Extension Service working with farmers has Extension Service working with farmers has developed the most productive and developed the most productive and economical food supply in the world.economical food supply in the world.

We often take our food supply for granted We often take our food supply for granted until we go to other countries. until we go to other countries.

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Agricultural Progress In just the last 50 yearsIn just the last 50 years;; *Beef cattle and hogs-1/3 larger and far less fat.*Beef cattle and hogs-1/3 larger and far less fat. *Milk production per dairy cow has gone from 30 *Milk production per dairy cow has gone from 30

lbs per day to 115 lbs.lbs per day to 115 lbs. *To grow a chicken from hatching of the egg to *To grow a chicken from hatching of the egg to slaughter has decreased from 16 weeks to 6 slaughter has decreased from 16 weeks to 6 weeks.weeks. *The amount of crops per acre has often *The amount of crops per acre has often quadrupled.quadrupled.

5Photo courtesy of USDA

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Arkansas Statistics

The next group of slides will go through;The next group of slides will go through;

1)Agricultural commodities in Arkansas.1)Agricultural commodities in Arkansas.

2)The size and diversity of food processing 2)The size and diversity of food processing

in Arkansas.in Arkansas.

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AGRICULTURE COMMODITIES

CommodityCommodity 2001 Cash Sales2001 Cash Sales % of Ark % of Ark TotalTotal

% of US % of US TotalTotal

TotalTotal 5,131,738,0005,131,738,000

Animal Animal AgricultureAgriculture

3,507,395,0003,507,395,000 68.368.3 3.33.3

CropsCrops 1,624,343,0001,624,343,000 31.731.7 1.71.7

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Commodity Sales Value

CommodityCommodity 2001 Sales ($)2001 Sales ($) % Ark% Ark % US% US

LivestockLivestock 574,525,000574,525,000 11.211.2 1.11.1

BroilersBroilers 2,237,586,0002,237,586,000 43.643.6 13.413.4

EggsEggs 302,718,000302,718,000 5.65.6 6.86.8

AquacultureAquaculture 95,306,00095,306,000 1.91.9 12.212.2

RiceRice 362,186,000362,186,000 7.17.1 43.843.8

Feed CropsFeed Crops 147,719,000147,719,000 2.92.9 0.60.6

VegetablesVegetables 30,878,00030,878,000 0.60.6 0.20.2

Fruits/ NutsFruits/ Nuts 10,781,00010,781,000 .02.02 0.10.1

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ARKANSAS’ RANK AMONG STATES

CommodityCommodity RankingRanking Rice 1Rice 1 Broilers 2Broilers 2 Turkeys 3Turkeys 3 Catfish 3Catfish 3 Cotton 5Cotton 5 Eggs 6Eggs 6 Soybeans 9Soybeans 9

10Photo courtesy of USDA

11Photo courtesy of USDA

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Food Processing In Arkansas

Food processing in Arkansas is very large Food processing in Arkansas is very large and diversified.and diversified.

Food processing establishments in Arkansas Food processing establishments in Arkansas are some of the most state-of-the-art, high are some of the most state-of-the-art, high tech plants in the world.tech plants in the world.

13Photo courtesy of IFSE

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Sales Value in Manufacturing

Manufacturing SegmentManufacturing Segment Sales ValueSales Value (in $billions) (in $billions)

FoodFood $11.3$11.3

Lumbar & PaperLumbar & Paper $ 7.2$ 7.2

Metal & FabricationMetal & Fabrication $ 6.9$ 6.9

Chemical & PetroleumChemical & Petroleum $ 4.4$ 4.4

ElectricalElectrical $ 3.3$ 3.3

MachineryMachinery $ 3.2$ 3.2

TotalTotal $46.4$46.4

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Number of Paid Employees

Manufacturing SegmentManufacturing Segment Number of EmployeesNumber of Employees

FoodFood 51,34751,347

Lumber & PaperLumber & Paper 33,34733,347

Metal & FabricationMetal & Fabrication 30,46830,468

Chemical & PetroleumChemical & Petroleum 8,9748,974

ElectricalElectrical 19,02719,027

MachineryMachinery 18,52318,523

TotalTotal 239,244 239,244

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Manufacturing Payrolls

Manufacturing SegmentManufacturing Segment PayrollPayroll (in $millions) (in $millions)

FoodFood $1,004$1,004

Lumber & PaperLumber & Paper $ 986$ 986

Metal & FabricationMetal & Fabrication $ 913$ 913

Chemical & PetroleumChemical & Petroleum $ 336$ 336

ElectricalElectrical $ 455$ 455

MachineryMachinery $ 486$ 486

TotalTotal $5,967$5,967

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Manufacturing Establishments

Manufacturing SegmentManufacturing Segment Number of Number of EstablishmentsEstablishments

FoodFood 232232

Lumber & PaperLumber & Paper 1,2051,205

Metal & FabricationMetal & Fabrication 371371

Chemical & PetroleumChemical & Petroleum 138138

ElectricalElectrical 109109

MachineryMachinery 439439

TotalTotal 4,0084,008

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FOOD PROCESSING PLANTS IN ARKANSAS

Red MeatPoultry

BakeryRice

Jellies etcDairy

Entrees

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5

10

15

20

25

30

35

40

45

50

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SIZES OF FOOD PLANTS

Plant SizePlant Size # of plants# of plants # of employees# of employees

0-250-25 109109 836836

26-5026-50 2121 837837

51-15051-150 3030 2,8312,831

Over 150Over 150 7474 49,62449,624

TotalTotal 232232 54,12854,128

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FOOD PROCESSORS IN ARKANSAS

CommodityCommodity # # EstablishmentsEstablishments

# Employees# Employees

Red MeatRed Meat 4848 2,5732,573

PoultryPoultry 4747 33,45233,452

BakeryBakery 2323 5,2395,239

RiceRice 2121 3,4033,403

Jellies, SaucesJellies, Sauces 1515 400400

DairyDairy 1111 763763

EntreesEntrees 99 2,6102,610

22Photo courtesy of USDA

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Photo courtesy of USDA

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Photo courtesy of IFSE

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Major Food Processors in Arkansas

Some of the major food processors in Arkansas Some of the major food processors in Arkansas include;include;

Allen Canning Co, Boars Head Provision Co, Allen Canning Co, Boars Head Provision Co, Conagra Foods, Frito-Lay, Gerber, Nestles, Conagra Foods, Frito-Lay, Gerber, Nestles, Odom’s Sausage, Planters Peanuts, Pinnacle Odom’s Sausage, Planters Peanuts, Pinnacle Foods, Post Cereals, Riceland Foods, Simmons Foods, Post Cereals, Riceland Foods, Simmons and Tyson.and Tyson.

With the exception of rice and poultry, most other With the exception of rice and poultry, most other food processing companies are not in Arkansas food processing companies are not in Arkansas due to the proximity to raw materials.due to the proximity to raw materials.

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Why Food Processors are in Arkansas

Abundant, hard-working and economical Abundant, hard-working and economical labor force.labor force.

Centrally located in the USCentrally located in the US Proximity to the Interstate road systemProximity to the Interstate road system ““Right to Work” state.Right to Work” state. State and community support.State and community support.

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The Food Dollar

On average, the farmer gets about 17 cents of On average, the farmer gets about 17 cents of every dollar spent in food stores. The other 83 every dollar spent in food stores. The other 83 cents is spent by the food processor, distributor cents is spent by the food processor, distributor and the store. In 1980, farmers received about 31 and the store. In 1980, farmers received about 31 cents of the dollar.cents of the dollar.

There is another presentation in the series by Dr There is another presentation in the series by Dr Mike Thomsen in the Department of Agricultural Mike Thomsen in the Department of Agricultural Economics who discusses the causes and Economics who discusses the causes and implications of this situation.implications of this situation.

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THE FOOD DOLLAR

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100

200

300

400

500

600

1952 1962 1972 1982 1992 1997

Food BillFarm Value

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COMPONENTS OF THE FOOD DOLLARFarmerLaborPackagingEnergyProfitsAdvertisingDepreciationRentInterestRepairsTaxesMisc

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SOME INTERESTING FARM FACTS

The average American farmer feeds 118 The average American farmer feeds 118 people. people.

Today it takes about 40 days for most Today it takes about 40 days for most Americans to earn enough income to pay Americans to earn enough income to pay for their food supply for the entire year. It for their food supply for the entire year. It takes the average American 124 days to takes the average American 124 days to earn enough money to pay federal, state and earn enough money to pay federal, state and local taxes for the year.local taxes for the year.

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CONCLUSIONS

Arkansas is rich in agricultural commodities Arkansas is rich in agricultural commodities ranking #1 and #2 in rice and poultry, ranking #1 and #2 in rice and poultry, respectively.respectively.

Food processing in Arkansas is a huge Food processing in Arkansas is a huge business with 232 food processing business with 232 food processing establishments, directly employing over establishments, directly employing over 60,000 people with sales over $11B.60,000 people with sales over $11B.

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