ADVERTISEMENT A4 ,397-MILE FOOD DRIVE TO...

© 2016 Dow Jones & Company. All Rights Reserved. THEWALL STREET JOURNAL. Monday, October 17, 2016 | R1

ing of moringa trees in the U.S. as aware-ness grows.

She adds that moringa’s appeal extendsbeyond its nutritional benefits to its “in-credible narrative.” Female farmers inGhana and Haiti grow moringa as a meansof supporting their families, she says.“People want to know the story behindtheir food, and this is a product that helpsempower women.”

THE NEXT BUZZWORD

REGENERATIVE GRAZING“Grass fed,” once a progressive term in

the food world, has become a mainstreambuzzword used to attract consumers whowant to eat beef that doesn’t come fromcows raised in feedlots. It has expandedfrom expensive meat sold at Whole FoodsMarket Inc. and steak burritos at ChipotleMexican Grill Inc. to Chili’s Grill & Bar,which recently began offering grass-fedburgers, and Annie’s Mac & Cheese, whichuses milk from grass-fed cows.

Now, Ms. Abbott argues, it’s not enoughjust to know the diet animals were fed,but also to understand the impact thoseanimals have on the environment.

There is a growing movement calledregenerative agriculture, in which differ-ent farming practices are used to restoresoil degraded by planting and harvestingcrops. One way to regenerate the topsoilis to graze cattle or bison on land usedfor growing crops, because their manure

Pleaseturntothenextpage

The Supermarkets’ BestWeapon: Produce

To counter online grocers, physicalstores highlight their fruits and

vegetablesR2

When Health Labels HurtConsumers expect to like “light”and “reduced-salt” foods less

R2

Big Bets on No FrillsAldi, a German deep-discountgrocery chain, is expanding into

wealthier areas of the U.S.R3

What’s Behindthe Commodities Glut

The boom-bust production cyclehas expanded across the globe

R3

A Buck for Broccoli?Paying your children to eat theirfruit and veggies may create good

long-term habitsR3

The Battle Against Food DesertsA search for new solutions tomany poor Americans’ limited

access to healthy foodR4

Not Your Father’s McNuggetsFamous food products change tomeet consumers’ health priorities

R4

As Crop Prices Fall, FarmersFocus on the Seeds

New services collect data fromtheir members, giving growers

information about what works bestR6

A Food Empire in aChanging World

Cargill’s CEO reflects on GMO food,record harvests and climate change

R6

INSIDE

OT TOO FAR IN THE FUTURE, when you reach for ahealthy drink, it might be full of water from a cactus.

Your main course at dinner might be a pear-like fruitfrom Southeast Asia that does a remarkable job of imi-tating meat. The next candy bar your children bite intomight be infused with mushrooms that help cut downon the sugar needed to sweeten the treat. And theirbreakfast cereal might be colored with algae instead ofchemicals.

Why the wave of exotic de-lights? Nutrition science—and

customers’ rapidly changing tastes—are forcing the foodbusiness to search ever farther afield for new edibles.

Everybody knows standards change—fat was bad, for in-stance, until the big no-nos became carbs and gluten—andeach time they do, a rash of new products appear thatclaim to be packed with good stuff and free of things thatcause harm.

But now it’s no longer enough to claim a product is sim-ply free of something that’s frowned upon. Consumers want to know that the badingredient hasn’t been replaced with something equally bad or worse. And theywant to know the story behind their food—how it was grown or raised, and whetherits production and distribution was kind to the environment. The less processedand simpler the ingredients, the better. That has left food and restaurant companiesrushing to clean up their labels with ingredients derived from natural sources con-sumers can understand and pronounce.

For a trend to go mainstream, it has to provide health benefits, be easily com-prehensible, make economic sense for the manufacturer, and of course taste good,says David Garfield, food-industry consultant at AlixPartners. It’s even better ifthe product tells a story and has third-party verification, such as a certified-or-ganic label.

Of course, not all foods that are popular on the fringe go mainstream. Cricketbars, for instance, haven’t taken off in the U.S., even though eating insects is com-mon in 80% of the world and they are high in protein. “It will be hard to overcome

the yuck factor in the U.S.,” Mr. Garfieldsays.

But crickets aside, food experts haveidentified the super-healthy foods—andconcepts—that are hitting supermarketshelves, and have the potential to becomethe next açaí berry or coconut water.Here’s a closer look at them.

THE NEXT SUPERFOOD

MORINGAMove over, kale—there’s a new super

green. The leaves of the moringa oleiferatree, grown in Haiti, parts of Latin Amer-ica and Africa, are drawing interest fromtrend watchers for their nutritional con-tent. The leaves contain high levels ofcalcium, potassium and protein, as wellas vitamins A, B, C, D and E. Because thetrees can grow in both tropical and tem-perate climates and produce leaves year-round that can be eaten fresh, cooked ordried without losing their nutritionalcontent, moringa is becoming an attrac-tive additive.

Shipping fresh leaves from so far awaywould result in spoilage, so there cur-rently isn’t any fresh moringa commer-cially available in the U.S., according toMelissa Abbott, vice president of culinaryinsights at Hartman Group, a food con-sulting firm in Bellevue, Wash. So it’scurrently being sold as a powder and inenergy shots, bars and teas at retailersincluding Target Corp. and Amazon. Ms.Abbott expects to see commercial plant-

NBY JULIE JARGON AND ANNIE GASPARRO

Lookingfor the nextaçaí berryor coconutwater.

JOURNAL REPORT

ISTO

CKPH

OTO

/GET

TYIM

AGES

(6)

THE NEXT HOT TRENDS IN FOODTHE NEXT HOT TRENDS IN FOODYou may not have heard ofYou may not have heard ofmoringa or regenerativemoringa or regenerative

grazing yet. But there’s a goodgrazing yet. But there’s a goodchance you will before long.chance you will before long.

NEWPLANT WATERSsuch as cactus

water are poppingup in mainstream

stores.

JACKFRUIThas a meaty

texture and absorbsthe flavors in which

it is cooked.

SPIRULINA,blue-green

algae, completesthe natural color

palette forfood makers.

MORINGATREES

grow in tropical andtemperate climates

and producenutrient-rich leaves

year-round.

CONSUMER-FRIENDLY

products with lesssweetener may get

a boost frombitterness-blocking

mushrooms.

REGENERATIVEGRAZING

uses cattle orbison to enrich

cropland.

HIGHLIGHTS

R8-12

A 4,397-MILE FOODDRIVE TO #DEFYHUNGER.This summer, over 4,000 MINI Owners motored across the country to#DefyHunger, raising 1.3 million meals* for Feeding America®.

Learn more:defyhungertogether.com | #mtts2016

*$1 helps provide 11 meals secured by Feeding America on behalf of local member food banks.© 2016 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.

ADVERTISEMENT

P2JW291000-0-R00100-1--------XA

R2 | Monday, October 17, 2016 THEWALL STREET JOURNAL.

The Supermarkets’ Best Weapon: ProduceIn the battle against e-tailers, physical stores are placing their bets on fruits and vegetables

JOURNAL REPORT | FOOD

FULL PAPER: The entire Wall StreetJournal issue that includes the Foodreport can be obtained for $10 a copy.Order by:

Phone: 1-800-JOURNALFax: 1-413-598-2259Mail*: Food

Dow Jones & Co.Attn: Back Copy Department84 Second Ave.Chicopee, Mass. 01020-4615

JOURNAL REPORT ONLY: Bulk orders ofthis Journal Report section only maytake up to six weeks for delivery andcan be obtained for $5 for one copy,$2 for each additional copy up to 50,and 25 cents for each copy thereafter.

Order by:

Email: [email protected]*: Dow Jones LP

Attn: Mailing Operations Dept.84 Second Ave.Chicopee, Mass. 01020-4615

REPRINT OR LICENSE ARTICLES: Toorder reprints of individual articles orfor information on licensing articlesfrom this section:

Online: www.djreprints.comPhone: 1-800-843-0008Email: [email protected]

*For mail orders, do not send cash.Checks or money orders are to be madepayable to Dow Jones & Co.

REPRINTS AVAILABLE

Consumers might be demanding more low-fat food, but newresearch suggests that perhaps they’d be better off not knowingthey’re eating it.

In a Catch-22 for food manufacturers trying to appeal tohealth-conscious consumers, a recent study found that peopletended to like the taste of a food labeled “light” less than the fla-vor of a supposedly higher-fat alternative, even though the twowere actually identical.

Joachim Schouteten, a researcher atGhent University in Belgium, and five otherresearchers enlisted 129 consumers toevaluate four pieces of cheese that camefrom the same block of Belgian youngGouda. The only information participantshad about the cheese came from four dif-ferent labels: “cheese,” “cheese with re-duced salt,” “light cheese” and “lightcheese with reduced salt.”

Participants liked the flavor of the twocheeses with “light” labels less than thetaste of the others. They also tasted lesssalt in the cheeses labeled “reduced salt,” though they liked themalmost as much as they liked the supposedly saltier versions, ac-cording to the study, which was published in the scientific journalNutrients.

Participants also said they had expected to like both the “light”cheeses and the “reduced salt” cheeses less than those thatdidn’t carry those labels.

“This negative effect of health labels on the expected likingcould discourage taste-oriented consumers to even try or buy theproduct,” the researchers wrote. Companies “should be aware thattaste-oriented consumers could interpret these labels as a warn-ing sign regarding their flavor.”

The study also found that more participants associated theregular cheese with positive emotions like “glad” compared withthe cheeses labeled light or low-salt.

How, then, do producers let consumers know their cheese islow in fat or salt without saying it? “You look for more-general la-bels that are not that linked to taste,” says Dr. Schouteten.

He says further research is needed to identify how labels affectwhat people actually choose to buy and eat.

Ms. Strum is a writer in New York. She can be reached [email protected].

Light in theHeadThe low expectations of

eating low-fat food

source. “The global supplychain might be easier to exe-cute than getting 20 items from20 places around Illinois to thesame distribution center,” Mr.Castagnetto says. To controlcosts, the company encouragesfarmers to supply crops whendemand is high, and ensuresfull trucks by adding freshjuice, yogurt and other prod-ucts to delivery routes.

Even the containers thathold produce out on the storefloor are getting more atten-tion. At Midwestern supercen-ter chain Meijer Inc., managersfound metal carts on wheelsperfect for moving seasonalfruit and vegetable displays to

high traffic areas to grab at-tention and keep sales moving.But metal doesn’t have a“farmers market” feel, so thecompany is building its ownversions with wooden exteriorsthat hide the metal frame, saysJamie Postell, director of pro-duce for the company.

“We are working on devel-oping an ideal display,” Mr.Postell says. “It is somewhatof an art.”

Wal-Mart has long strug-gled to become known for thebest produce, not just lowprices on bananas, onions orother staples. Greg Foran, Wal-Mart’s U.S. CEO of two years,is pushing stores to change.During a surprise visit to aWal-Mart in Dearborn, Mich.,earlier this year, Mr. Foranspent “80% of his time in pro-duce,” says Mohammed Saleh,co-manager of the store.

The executive walked work-ers through new produce re-quirements. To draw shoppers’eyes, the department should al-ways use ”color blocking,” al-ternating the color of fruits andvegetables on display. The “wetwall” now starts with leafygreens, not bagged salad, toconvey freshness. Seasonal fruitshould get prime placement infront to spur impulse buying.

“We want to be known forhaving fresh all the time,” saysMr. Saleh. “We have very littleroom for error.”

Ms. Nassauer is a reporterfor The Wall Street Journalin New York. Email her [email protected].

BY BECKIE STRUM

The Journal Report welcomesyour comments—by mail, fax oremail. Letters should be ad-dressed to Lawrence Rout, TheWall Street Journal, 4300 Route 1North, South Brunswick, N.J.08852. The fax number is609-520-7256, and the emailaddress is [email protected].

For advertising informationplease contact

Katy Lawrence at212-416-4119

or [email protected]

THE JOURNAL REPORT

The In-Store EdgeConsumers are reluctant tobuy produce and other freshfood online. The percentsurveyed who said they hadmade an online purchase inthese categories in the prior12 months:

Source: Morgan Stanley AlphaWise surveyof 5,000 consumers in five countries,April-May 2016

THEWALL STREET JOURNAL.

Clothing ............................................ 52%Books ................................................. 43%CDs, DVDs, Blu-Ray discs ..... 31%Beauty, cosmetics products 27%Children’s toys, durables ........ 22%Jewelry .............................................. 21%Pet food, pet supplies ............. 19%Groceries (packaged food) .... 18%Sporting goods ............................ 16%Groceries (fresh food) ............. 12%

Identicalcheeselabeleddifferentlyelicitsdifferentreactions.

BERNIE DAVE, a regional man-ager for Wal-Mart Stores Inc.near Detroit, starts his weeklystore visits in the backroomsof the produce departments.

Mr. Dave checks the “crisp-ing” stations where workerskeep lettuce fresh longer bywashing it, cutting off thebrowned ends and culling anycrushed leaves. It is one of sev-eral upgrades Wal-Mart is mak-ing to its produce areas—im-proving lighting, training staffto better care for fruits andvegetables, and putting producein bins that mimic wood grainand aim to give the section thefeel of a farmers market.

“There has been a massiveimprovement on fresh fromwhere we were at,” says Mr.Dave, who started at the com-pany managing stores nineyears ago.

While Wal-Mart and otherretailers, including Ahold USAand Meijer Inc., are pouringmoney into ramping up onlinesales, the grocers are alsobuckling down on the basics ofthe produce department.That’s because high-qualityfruits, vegetables and otherfresh foods are emerging as aphysical store’s best defenseagainst growing competitionfrom Amazon.com Inc.

Picky about produceMany customers decide

where to shop based on thequality of the produce, and—for now—most shoppers wantto pick their own ripe toma-toes or perfectly green headsof lettuce, say grocers and in-dustry researchers. Shopperswho don’t buy groceries onlinemost often cite the desire topick their own produce as thereason, according to an onlinesurvey from Morgan Stanleyearlier this year.

Online food and beveragesales are growing fast, up 20%since 2013, but still make up a

BY SARAH NASSAUER

and left-behind forage act as natural fertilizers.In the next three years, Ms. Abbott expects, restaurants and

food companies will highlight that their grass-fed beef wasraised in a regenerative-grazing fashion. She adds, though, thatthere would have to be a verification system designed to ensurethe claim has meaning.

THE NEXT INGREDIENT

SOMETHING CONSUMERSUNDERSTAND

Food companies have long struggled to keep up with chang-ing government guidelines and regulations by reformulatingtheir products to remove unhealthy ingredients such as transfatty acids, sugar and salt. In some cases, though, shoppers areeven more suspicious of the stuff companies put in, such as arti-ficial sweeteners.

Now the goal is “clean la-bels”—lists of ingredientsconsumers can understandand pronounce. So, food mak-ers are experimenting withadding natural ingredients tomask bad flavors or enhancegood ones without swappingone bad ingredient for an-other.

“It’s a shift in thinking forfood and ingredients compa-nies,” says Dave Donnan, apartner at consulting firmA.T. Kearney, where he leadsthe global food and beveragepractice. “They’re not just looking for a replacement for sugar,but how to change the taste profile” of products so that theydon’t need as much sweetener in the first place.

For instance, one biotechnology company is using mush-rooms to remove the bitterness in cacao beans so that choco-late can be made with less sugar. Other companies are movingto soy protein and natural flavor enhancers to reduce sodiumlevels in food.

THE NEXT HEALTHY BEVERAGE

PLANT WATERSThe coconut-water fad appears to have unleashed a new cate-

gory in the drink aisle: plant waters. From aloe water and maplewater to artichoke water and cactus water, they are replacingmore sugary sports drinks and artificially flavored waters thatdon’t appeal to consumers’ desire for nutritious and naturalbeverages.

While U.S. soda sales fell for the 11th year in a row last year,coconut water sales rose 27%, according to market researchfirm Technavio.

Some drinks are more likely to make it from health-foodstores to convenience stores than others. Maple water and cac-tus water are more appealing than, say, artichoke water, sincemany people know cactuses contain water and view maplesyrup as tasty.

Not only do these provide more flavor than plain water, theyalso tout health benefits beyond hydration. Aloe-vera juicesclaim to aid digestion and weight loss. Cactus-water makers saytheir drinks contain electrolytes and antioxidants.

Some of these plant waters are already popping up next tococonut water in mainstream grocery stores such as Kroger. Thenew plant waters are taking aim at the coconut beverage, adver-tising that maple water or cactus water contains significantlyless sugar.

Continuedfromthepriorpage THE NEXT MEAT ALTERNATIVE

JACKFRUITIn health guidelines issued early this year, official U.S. dieti-

tians say Americans eat too much meat. That’s giving fodder tonew meat alternatives aiming to replace the usual meat replace-ment, tofu, which has worn out its welcome with many consum-ers.

There are burgers made with protein extracted from yellowpeas, a molecule called heme that makes plants taste like beefand faux pulled pork made from shredded jackfruit.

Equity-research firm Wedbush estimates the overall industryof plant-based alternative foods, including replacements formeat and dairy, has $3.5 billion in annual sales. Analysts thereexpect that to continue growing as a result of increasing healthand sustainability concerns around meat, as well as new tech-nologies—like the heme molecule—that make the texture andtaste of vegetables more similar to meat.

Of all the budding meatysubstitutes, food experts sayjackfruit has the most poten-tial to go mainstream becauseof its meaty texture and abil-ity to absorb the flavors inwhich it’s cooked. A largefruit with a spiky outer shell,it comes from trees grownmostly in South America andSoutheast Asia, but it’s in-creasingly making its way tothe U.S. The inner flesh—somewhat pear-like whenraw—develops a savory flavorwhen cooked.

“People who want to avoidsoy are looking for alternatives, and a lot of the alternatives arehighly processed,” says Ms. Abbott of Hartman Group. “This isjust fruit that’s been minimally processed and seasoned withthings you have in your kitchen.”

THE NEXT NATURAL FOOD DYE

SPIRULINAThe move toward cleaner food labels is pushing out artificial

food dyes like Red No. 40 and Yellow 6, which were popularizedfor making Jell-O dessert bright red and giving Froot Loops ce-real its neon glow. Food makers are responding to growing con-cerns among parents that artificial food colorings may cause hy-peractivity and allergic reactions in their children.

While red and yellow are relatively easy to replicate withnatural spices like turmeric and paprika, blue and green havegiven food makers trouble—until now. Blue-green algae calledspirulina are often sold as a health supplement at vitamin shopsor as an energy shot in smoothies. But now they are being har-vested for use as a natural blue-green dye.

In 2013, M&M’s maker Mars Inc. received the green lightfrom U.S. regulators to use spirulina to color candy and gum.That was later expanded to include cereal, ice cream andmore—completing the natural color palette for food makers.Mars said in February it would switch M&M’s to all-natural col-ors by 2021. Other small companies are already using spirulinafor organic candy, like Black Forest gummy bears.

The Food Marketing Institute, a grocery trade group, expectsthe volume of spirulina used for food and beverages to quintu-ple in 2020 from 2014, and the natural food-coloring industryto grow at an average annual rate of 6.8% in that time frame.

Ms. Jargon and Ms. Gasparro are reporters in The WallStreet Journal’s Chicago bureau. They can be reached [email protected] and [email protected].

The Next Hot Trends in Food

tiny 0.16% of the $670 billionfood and beverage market, ac-cording to Commerce Depart-ment figures. Only 4% of con-sumers said they purchasedsome produce through onlinegrocers in the past year, a2015 Nielsen survey found.

Produce also is often partof “fill-in” trips, those mo-ments a shopper dashes to thestore for a last-minute ingredi-ent and might not wait for anonline order. Produce itselfisn’t usually a big money-maker, but it draws people tostores to buy higher-marginpackaged food, apparel, elec-tronics and other items—prod-ucts customers increasinglyare buying online. Even Ama-zon wants part of the valuablemarket. It plans to build smallstores that sell perishablefoods and allow shoppers toorder shelf-stable items forsame-day delivery, say peoplefamiliar with the matter.

Improving Wal-Mart’s freshfood is “a huge priority for usbecause it’s a big trafficdriver,” says Steve Bratspies,chief merchandising officer for

Wal-Mart U.S. in a March callwith investors.

Ahold USA—the U.S.-basedunit of Ahold Delhaize NV andowner of Stop & Shop, Giantand Peapod, an early onlinegrocery-delivery company inthe U.S.—is investing heavily tomake its supermarket producedepartments more appealing,says John Ruane, senior vicepresident of fresh for Ahold.

Pyramids fallOver the past two years,

Ahold moved seasonal prod-ucts and easy meal additionslike cut vegetables to the frontof its stores to make shoppingfaster, Mr. Ruane says. Aholdnow trains employees to ask“WIBI” (Would I Buy It?) whenstocking, to weed out productsthat are past their peak. Aholdalso is adding unusual itemslike yucca and dragon fruit,and store workers havestopped stacking produce intoneat pyramids, a costly effortthat also can damage produce,Mr. Ruane says.

Ahold has also created anew brand of store called

Bfresh, a chain of smallerstores in cities meant to at-tract young, urban dwellers,who are “big Amazon custom-ers,” says Paul Kneeland, leadfresh merchant for the newchain. In the two locationsopen so far, both in Massachu-setts, produce gets more spacethan any other department andmakes up the largest chunk ofsales, Mr. Kneeland says.

Aesthetics are particularlyimportant in the produce de-partment because most pur-chases are impulsive, grocerssay. “People go into the pro-duce department with a listthat says ‘fruits’ and ‘vegeta-bles,’ versus specific products,”says Michael Castagnetto, di-rector of fresh sourcing forRobinson Fresh, which isowned by C.H. Robinson, anEden Prairie, Minn., logisticscompany that supplies produceand transports other goods toretailers including Wal-Mart.

One way to grab attention iswith a “local” moniker. Thathas Robinson Fresh workingwith a wider variety of farmers,often a higher-cost way to

Bfresh stores bought branded green and wood cases to hold its produce, for a premium touch.

BFRE

SH

Taste TrendsU.S. food sales in these health-oriented categories for the 52 weeksended July 2, and the percentage change from the prior 52-week period

SALES, IN BILLIONS PCT. CHANGE

Gluten-free $61.3 12.5%

No artificial preservatives 12.2 5.8

No artificial colors 3.8 16.6

Grass-fed 0.4 50.1

Source: Nielsen THEWALL STREET JOURNAL.

P2JW291000-0-R00200-1--------XA

THEWALL STREET JOURNAL. Monday, October 17, 2016 | R3

HARVESTS ARE under way ofwhat are projected to be thelargest corn and soybean cropsin U.S. history, which soon willhit a global market already sit-ting on the largest-ever grainstockpiles.

Indeed, some farmers are hop-ing for a weather hiccup some-where in the world to curb yieldsand breathe life into crop pricesthat recently hit multiyear lows.

They may be waiting a longtime.

It is a dramatic turnaroundfrom four years ago, when pricesfor many commodities weresoaring to the highest levels U.S.producers had seen in their lives.Back then, extreme droughtslashed production of major rowcrops, forcing ranchers to cullcattle herds as feed costs soared.

But now farmers face a prob-lem of the opposite sort. Pricesfor some crops are hovering nearmultiyear lows as storage facili-ties bulge with farm goods.

To make space for crops likecorn after a massive wheat har-vest last summer, Frank Riedl,general manager at Great BendCo-op, a Kansas grain elevatorand farm supplier, bought andleased extra land on which tobuild bunkers the size of footballfields where he can heap millionsof bushels of overflow grain.

“There’s an abundance of cornout here in the country and wedon’t have the storage base forit,” he says. “Farmers are tryingto find any place they can todump their crops.”

The boom-bust cycle of com-modity production in Americahas expanded across the globe inrecent years, as crop and live-stock farmers in South America,China and the Black Sea regionhave adopted farming practicesthat largely mirror those in theU.S. breadbasket. That has raisedthe potential risks and rewardsfor producers looking to sell, asweather, currency swings andpolicy changes in far-off coun-tries have a greater impact onU.S. food prices than ever before.

“The world is still expandingproduction area, and because ofthat, this cycle could go onawhile,” says Dan Basse, presidentof Chicago-based commoditiesfirm AgResource Co., who notesthat farmers world-wide haveadded nearly 180 million acres tocultivation in the past decade,about as much as the combinedacreage of the entire U.S. GrainBelt. Still, “it just takes onedrought in a major productionarea to cure this,” he says.

BY KELSEY GEEAND JESSE NEWMAN


Prices for cereal grains andmeat globally declined in Augustand September from the year-earlier period, according to theUnited Nations’ Food and Agri-culture Organization, due in partto large harvests across theNorthern Hemisphere. The barn-yard-wide glut stems from deci-sions made globally to plantmore row-crop acres and to raisebigger herds in response to newdemand and high prices duringthe most recent shortage.

“There’s an old industry adagethat money makes milk, andmore money makes more milk,”says Chuck Nicholson, a profes-sor of supply chain and informa-

tion systems at PennsylvaniaState University, who focuses onagricultural markets. The currentglut has “a lot to do with the de-cisions that farmers make in ag-gregate—producers can turn onthe milk spigot relatively quicklyand tend to be more reluctant toturn it off.”

Also fueling increasing pro-duction is a growing global popu-lation hungry for more protein indaily diets. Foods like infant for-mula, pork, cheese and poultryare becoming staples for a grow-ing class of consumers who canafford meals that seemed luxuri-ous to an earlier generation.

To make more protein, meat

and dairy producers rely on asteady supply of inexpensive feedgrains. The Food and AgricultureOrganization projects that by2050, the world would need togenerate 455 million metric tonsof meat a year to feed an addi-tion 2.4 billion people. That isaround 40% more than even thisyear’s massive production.

Along the way, however, pro-ducers are increasingly suscepti-ble to missteps in the delicatedance of supply and demandacross the world.

For farmers who raise animalsfor food, calculating when to ex-pand the business is a gamble onmarket conditions that could bemonths or years away. It takesmore than a year for a calf to ma-ture to the point when it can beimpregnated, and nine months toproduce a new heir to be added toa milk or beef herd.

Some able to weather thelower prices say credit belongsto marketing arrangements, suchas long-term contracts with buy-ers or farmers, locked in well inadvance.

“We’re producing a very per-ishable product and have a fewhours or at most a day to sell”the milk before it spoils, saysScott McGinty, president of Au-rora Organic Dairy LLC, based inBoulder, Colo.

“You have to be close to yourmarket,” Mr. McGinty says, “orthe conditions that drove youinto the business might be goneby the time you get there.”

Ms. Gee and Ms. Newman areWall Street Journal reportersin Chicago. Email them [email protected] [email protected].

‘Farmers are trying to find any place they can to dump their crops,’ says one co-op manager.

Time of Plenty—and PerilU.S. annual farm production, in billion pounds. High output in the U.S. andabroad is undercutting prices.

*Forecast Source: U.S. Agriculture Department THEWALL STREET JOURNAL.

Corn Soybeans

Beef Pork

0

600

300

900

’110

200

100

300

’11 ’16*’16*

Chicken

Milk

200

100

300

0’11 ’16*

HowWe Got HereSUMMER 2012 | Severe drought strikes, corn prices top $8/bushelWINTER 2012 | Cattle herds culled as costs soarFALL 2013 | Mild weather restores crops, and Texas drought easesWINTER 2014 | Ranchers rebuild herds as cattle, meat prices skyrocketFALL 2015 | Record soybean harvest adds to ample grain stocksSUMMER 2016 | Massive grain, meat supplies send prices plunging

’11 ’16* ’11 ’16*

40

20

0

40

20

0

40

20

0’11 ’16*

olina and Maryland, and hasplans to open stores along theEast Coast from Pennsylvaniato Georgia—a region whereAldi operates hundreds of lo-cations.

“Everyone wants to sell gro-ceries,” says Scott Patton,Aldi’s divisional president. “Itgets people in stores.”

A move into the suburbs isone way for Aldi to reach newcustomers. Another is to caterto more upscale tastes. Back inthe 1990s, Aldi sold no freshmeat and barely any produce.Now it sells fresh organicground beef, and as of this year,all of its store-brand foods nolonger contain synthetic dyes.

Aldi recently added refriger-ated produce for the first time,and it’s so popular it’s causinga backup in the aisle. “Every-one’s stopping there,” Mr. Pat-ton says. “One of the thingswe’re working on is the turn atthe refrigerated section” to al-leviate the traffic jams.

The push into the suburbshas caught the attention ofgrocery executives across thespectrum. Whole Foods Mar-ket Inc. opened its own dis-count chain earlier this year,called 365 by Whole Foods, asit felt pressure to lower pricesgiven increased competition.

Natural-food stores, likeWhole Foods, will see their av-erage annual sales growth fallto 5% between 2015 and 2020from 17% over the prior fiveyears, partly because discount-ers have added more fresh andorganic food to their offerings,predicts Ms. Howard.

“We have a tremendousamount of respect for Aldi andLidl,” Rodney McMullen, chiefexecutive of Kroger Co., re-cently told investors whenasked about the new competi-tion. “There are certain cus-tomers that we believe like toshop in that environment.”

In 1998 and 1999, Krogerbought deep-discount grocery

chains Food 4 Less and RulerFoods, which resemble Aldiwith their bare-bones styleand requirement that custom-ers bag their own groceries.Kroger says its larger scale hashelped save money, but ithasn’t been able to make thestores work, finding it difficultto understand and communi-cate with that “value cus-tomer.”

For now, the Aldi formulaappears to be resonating withconsumers. On a recent visit toa store in Chicago, some shop-pers said they were willing tosacrifice luxuries like free gro-cery carts and plastic bags forcheaper groceries.

“I come for the prices,” saidSteve Bryla, a 70-year-old re-tiree.

Ms. Gasparro and Ms. Had-don are Wall Street Journalreporters in Chicago. [email protected] [email protected].

ARE SUBURBAN consumersready to give up the familiargrocery experience for bare-bones stores where they haveto do their own bagging andleave a quarter deposit for ashopping cart?

That’s what Aldi and otherdeep-discount chains are bet-ting as they make a big expan-sion push across the U.S.

Up until now, the Germanchain and competitors like Lidland dollar stores have mostlyattracted cash-strapped cus-tomers. Now they’re movinginto wealthier areas as Ameri-

cans of all stripes get morebudget-conscious and theirtraditional low-to-middle-in-come niche gets crowded withcompetitors. Aldi is going evenfurther in appealing to upscaletastes by stocking some fan-cier goods, such as organicfoods.

Bernstein Research analystAlexia Howard expects dis-counters to more than doubletheir average annual salesgrowth to 15% between 2015and 2020, from 6% over theprior five years. “They seem tohave rolled up their sleevesand planned to make inroadswith major expansions,” Ms.Howard says.

Still, she warns, the shop-ping experience may not reso-nate with Americans and “itmight be hard to re-createtheir European” success.

Indeed, for American shop-pers, especially those used tothe coziness of suburbanstores, Aldi’s stores can be jar-ring. The outlets feature no-frills décor, skimpy in-storemarketing and a limited as-sortment of foods, more than90% of which are house-branded.

Aldi, which has about 1,600locations in the U.S., says themajority of the latest 500stores it has opened have beenin large suburban retail cen-ters in middle-income orhigher neighborhoods.

The company takes a num-ber of measures to save on la-bor costs. The quarter depositsprod shoppers to return cartsto the holding bin. Aldi also

puts multiple bar codes on itsfood packaging so that ca-shiers can more easily andquickly scan them, cuttingdown on the need for morestaffers to handle customercheckout traffic.

Similarly, milk and egg re-frigerators have shelves thatroll in and out from both thefront and back so that employ-ees can restock 80 gallons ofmilk and 240 dozen eggs inseconds.

If Aldi customers have aquestion for their local store,they have to drive there. Indi-vidual stores don’t take phonecalls as a means of keepingcosts down and prices low.

The result? Prices can run25% to 40% lower than tradi-tional grocers.

Customers such as SamBridgeland, a 31-year-old con-sultant from Chicago, likeAldi’s no-frills approach. “Idon’t care about the services,”he says.

But Aldi—which opened itsfirst U.S. store in Iowa in1976—is feeling much morecompetition in its core marketthese days. A broader range ofretailers are getting into thediscount-food business, fromTarget to dollar stores.

Lidl, another German dis-counter, has plans to come tothe U.S. next year, and hasspent more than a decadestudying the U.S. market.While Lidl hasn’t confirmedhow many stores it will open,it’s building three regionalheadquarters and distributioncenters in Virginia, North Car-

Big Bets on No FrillsAldi, a German deep-discount grocery chain,is expanding into wealthier areas of the U.S.

What’s Behind the Commodities GlutThe boom-bust production cycle has expanded across the globe

BY ANNIE GASPARROAND HEATHER HADDON

Aldi stores stack cases of products rather than stocking individual packages on shelves.

Source: Bernstein Research


Growth on the CheapIf the Aldi and Lidl discountchains are successful in their U.S.expansion, they will shake up theindustry, mostly at the expenseof natural-food stores like WholeFoods. Here is one projection ofaverage annual sales growth offood in the U.S.:

NATURAL-FOODSSTORES

DISCOUNTERS TOTALGROCERYINDUSTRY

17%

5% 6.1%

15%

2% 2.5%

2015 - 20202010 - 2015

MARK

GAIL/THEWASH

INGT

ONPO

ST/G

ETTY

IMAGES

Science says it’s OK to pay your children to eattheir fruits and vegetables.

The strategy not only works in the short term, butcan create healthful eating habits in children in thelong run if the little bribe is carried out consistentlyfor several weeks, according toa study published earlier thisyear in the Journal of HealthEconomics.

“As a parent, imagine thatthere’s something to do thatmight be worth my effort, andI get the long-term benefit,”says Joseph Price, associateprofessor of economics atBrigham Young University. Heco-wrote the paper withGeorge Loewenstein, professorof economics and psychologyat Carnegie Mellon University,and Kevin Volpp, professor ofmedicine at the University ofPennsylvania.

For a year and a half, theresearchers carried out a study of 8,000 children infirst through sixth grade at 40 elementary schools totest whether short-run incentives could create better,and lasting, eating habits in children.

At lunchtime, students who ate at least one serv-ing of fruit or vegetable, such as an apple, freshpeaches, pineapple, side salad or a banana, received a25-cent token that could be redeemed at the school’sstore, carnival or book fair.

The researchers saw an immediate spike in con-sumption, Dr. Price says. “These small incentivesproduced a dramatic increase in fruit and vegetableconsumption during the incentive period,” the re-searchers wrote. “This change in behavior was sus-tained.”

Two months after the incentives ended, manymore students than before the program started werestill eating a fruit or vegetable at lunch. For schoolsthat provided the 25-cent incentive for three weeks,21% more children were eating at least one serving offruit or vegetable at lunch than before.

The effect was even greater for schools that im-plemented the program for five weeks, which led to a44% increase in consumption two months out.

Positive peer pressure played a role in getting thechildren to adopt and then stick to the program. Ahealth economist from Cornell University has evensuggested that one way to establish the social normeven quicker was by making sure the “cool kids” werethe early adopters of the behavior, Dr. Price says.“Anything you can do to change the norm,” he adds.

The researchers also believe that the more oftenstudents ate fruits and vegetables, the more theylearned to like them. Dr. Price draws an example fromhis personal life, saying he offered his son an incen-tive to practice hitting a baseball. The more his sonpracticed, the better he got and the more he likedplaying, Dr. Price says.

Parents or schools could also try nonmonetary re-wards, such as extended recess or gym class, Dr.Price says.

Ms. Strum is a writer in New York. She can bereached at [email protected].

A Buck forBroccoli?

Why you may want topay your children to eat

their vegetables

BY BECKIE STRUM

Short-termrewardsfor eatingfruits andveggiescan creategoodhabits inthe longterm.

DANIELACK

ER/B

LOOMBE

RGNEW

S

P2JW291000-0-R00300-1--------XA



FRUSTRATED WITH years ofhit-or-miss efforts, retailersand the government are stillsearching for ways to addressfood deserts.

These areas, which can bein either remote rural regionsor dense inner cities, don’t of-fer low-income residents bigsupermarkets where they canget fresh, healthy food. Thestumbling block preventingsupermarket chains from mov-ing into these areas is profit—their margins are already ra-zor-thin, and stores in fooddeserts subsist on a patchworkof government subsidies andfood-stamp payments fromlow-income customers.

Now some big supermarketplayers are opening test stores

that use charitable contribu-tions and tax incentives forfunding—an attempt to side-step the problem of turning aprofit. Other companies are ex-perimenting with online food-delivery services that bringgroceries to households thataren’t served by supermarkets.

“We think it’s important, sowe’re not going to give up, butwe still have a lot of work todo,” Kroger Co. Chief ExecutiveRodney McMullen said earlierthis year when asked about theprofit struggles of one of itsbanner stores serving lower-in-come areas. “The way I like totalk about it, we’ve learnedmore of the things not to dothan the ones to do.”

A struggling effortThe U.S. Agriculture De-

partment estimates that 23.5million Americans live in low-

income areas that are fartherthan one mile from a largegrocery store or supermarket,and 11.5 million of these peo-ple have incomes below thepoverty level.

In 2011, executives fromWal-Mart Stores, Inc., Wal-greens Boots Alliance Inc., Su-perValu Inc. and other grocerystores joined with the Obamaadministration to announce aninitiative to open more than1,500 stores in areas designatedas food deserts. The WhiteHouse sought hundreds of mil-lions of dollars in public andprivate funds toward financingand tax credits for companiesto open in areas that lacked ac-cess to a grocery store.

The government spendinghas ended up being far morelimited, and many of the brick-and-mortar stores haven’tgenerated enough sales to stayafloat. Earlier this year, Wal-Mart said it was closing 154stores, many of them smallerstores designed to serveneighborhoods with low vol-ume, like food deserts.

Kroger, the nation’s largestfood retailer after Wal-Mart,has been experimenting with achain of several dozen no-frillsstores called Ruler Foods,which serve rural areas in theMidwest. Company executiveshave said that its pilot hasproved difficult to make prof-itable, although it intends toopen a total of eight morestores this year.

“We’re still trying to under-stand the economics of themodel to get to where it actu-ally performs at [a return oninvestment] that we’re happywith,” Mr. McMullen told in-vestors earlier this year. “Wecontinue to make progress,but we do not think we’ve fig-ured it out.”

Some stores may get newsources of funding so that lowprofits won’t sink fledgling ef-forts. Whole Foods said itwould open stores in low-in-

come neighborhoods—includ-ing in New Orleans and Chi-cago—through a foundationthat relies on charitable contri-butions. The efforts are boostedby local tax incentives to breakground. The company, based inAustin, Texas, provides loansand training to local food pur-veyors to act as potential sup-pliers. The Chicago store beganhiring employees in July andopened in late September.

Online optionSome grocers are extending

online grocery shopping tolow-income neighborhoods.FreshDirect, the online deliv-ery service most associatedwith affluent urban foodies,started a pilot in two ZIPCodes in poor communities inNew York’s Bronx borough todeliver groceries two yearsago. Feedback so far has beenpositive, and the company iscollecting data to further as-sess the pilot’s effectiveness,says FreshDirect Vice Presi-dent Larry Scott Blackmon.

Part of the trick for FreshDi-rect was figuring out how re-cipients of the government’s$75 billion Supplemental Nutri-tion Assistance Program, orfood stamps, would pay forgroceries. The company’s deliv-ery people can use hand-held

debit-card readers to processSNAP benefit-card transactions,a company spokeswoman says.

Other retailers hope to beincluded in a federal pilot pro-gram next year that will allowfood-stamp recipients to usetheir benefits with online gro-cery sellers. Providing accessto fresh foods in food deserts,along with cost savings, moti-vated the Agriculture Depart-ment to conduct the test, anagency spokeswoman says. Un-like with FreshDirect, recipi-ents would pay for their gro-ceries directly online with theirSNAP benefits, not throughhand-held devices at delivery.

Some observers warn,though, that providing accessto healthier foods is only partof the problem. For instance,education on nutrition is cru-cial, says Roger Thurow, se-nior fellow at the ChicagoCouncil on Global Affairs, whowrites about nutrition.

Fast food is often cheaperthan fresh goods, and poorconsumers may not have thetime, transportation or incen-tive to cook healthy meals fortheir families if they don’tknow its importance, he says.“There’s all these variables,”Mr. Thurow says. “It’s not assimple as putting a grocerystore or farmers market or

some shop with fresh foodavailable there.”

Logistics are also impor-tant. Time is scarce in low-in-come neighborhoods wherepeople work shift jobs or mul-tiple jobs and aren’t home atmealtimes. “Long work timescut into cooking,” says Mr.Thurow, whose research hasfocused on poor mothers inChicago. Long work hours mayalso make it a challenge to getto stores, even if they’renearby, he adds.

Mari Gallagher, a Chicago-based consultant who re-searches food deserts agreesthat “plopping down a grocerystore is not a silver bullet.”

But at least having the op-tion can do a lot of good, sheadds. A study she conducted in2014 in rural Iowa found thatnot having ready access to asupermarket fueled obesityamong adults, and shorterheights and worse gradesamong children.

“We can’t choose healthyfood if we don’t have access toit,” Ms. Gallagher says.

Ms. Haddon and Ms.Gasparro are reporters inThe Wall Street Journal’sChicago bureau. [email protected] [email protected].

The Battle Against Food Deserts Rages OnAs many poor Americans continue to havelimited access to healthy food, companies andthe government struggle to find new solutions

BY HEATHER HADDONAND ANNIE GASPARRO

Unhealthy FareFood-stamp use at stores that typically offer little or no produceand other fresh foods has jumped. The dollar value, in billions, andpercentage of total food-stamp redemptions at these two typesof retailers:

Income LinkFrequency of fresh produce purchases, based on household income

AMOUNT PCT. OF TOTAL

Combinationgrocery / other*

Convenience store

Source: “The Power of Produce,” Food Marketing Institute and 210 Analytics LLC, based ononline panel of 1,327 U.S. consumers in April 2015 THEWALL STREET JOURNAL.

*Primary business is sale of general merchandise, but also sell a variety of food products;includes independent drugstores, dollar stores and general stores

Source: U.S. Agriculture Department

Frequently Sometimes

2007 2015

Hardly ever

High6%5%

89%

Lower income5%

24%71%

2%Low-medium

18%80%

Medium-high2%10%

88%

4.3%5.0%

$0.49$4.58

1.6%6.6%

$1.31$3.49

A scientific experiment has tackled an eternal question naggingcity dwellers and busy parents: Cook, or order takeout?

To someone with a GrubHub addiction, the first part of thestudy’s findings may surprise. Taste tests showed that when itcomes to healthy food, people like their own preparation betterthan the same recipe ready-made.

“The mere act of preparing foods leads to higher likings be-cause people overvalue objects that they have put effort in,” say ateam of European researchers in a paper published earlier thisyear in Health Psychology.

Their findings underscore what otherresearchers dub the “IKEA effect,” areference to the Swedish company thatsells assemble-it-yourself furniture.“When people prepare things—if theybuild, for example, a cupboard—peoplelike it more,” says Simone Dohle of theUniversity of Cologne. Dr. Dohle co-wrote the prepared-foods research pa-per with Sina Rall and Michael Siegristof the Swiss Federal Institute of Tech-nology in Zurich.

But the preference for self-made meals changes when the foodis unhealthy. We like our own concoction less when we know in-gredients like fat and sugar went into it, according to the study.

To reach that conclusion, the three researchers enlisted 120women, mostly German students, to taste two very differentshakes.

Half of the participants tasted a low-calorie smoothie madefrom raspberries, milk and sugar. Some measured and blended itthemselves, while others tasted one the researchers made aheadof time.

Those who had to mix their own rated the raspberry smoothiehigher on a scale from “do not like at all” to “like very much”than those who drank it pre-made. They also estimated that itwas healthier and had fewer calories.

“Psychologists explain this as ‘justification of effort’ becauseparticipants have put all this effort into making a milkshake,” saysDr. Dohle.

The effect was particularly pronounced for those women whosaid they were on diets or had other dietary restraints, the re-searchers found.

In contrast, the other half of participants tasted a high-caloriemilkshake of chocolate ice cream, milk and cream, which they ei-ther mixed themselves or received already prepared.

Those who made the chocolate milkshake on their own rated itworse than those who drank the prepared version—evidence thatpeople are turned off when they know exactly how much in theway of unhealthy ingredients is in their food, the researcherswrote.

The study lends credence to the avalanche of advice in coun-tries with rising rates of obesity that people should cook at homemore. It also shows that when people cook at home, they aremore likely to lean toward healthier recipes.

“There’s this second process: If you prepare something, youbecome more aware of all of the ingredients you put into yourfood,” Dr. Dohle says. “Food preparation could be a way to fosterhealthy eating habits.”

Ms. Strum is a writer in New York. She can be reached [email protected].

Prepare, Eat, EnjoyThe pleasure of self-mademeals

BY BECKIE STRUM

A sign on a Dollar General freezer case of ice cream and other desserts welcomes food stamps.

EMILEWAMST

EKER

/BLO

OMBE

RGNEW

S

CHICKEN MCNUGGETS1983 | Invented2003 | McDonald’s comes outwith all-white-meat chicken2015 | Announces plans toreduce antibiotics2016 | Removesartificial preservatives

BURGER KING FRENCH FRIES1953 | The chain opens, with original fries recipe1997 | Alters its fries, coating them with starch2001 | Changes the formula again to have less ofa coating after customers complained aboutthe previous recipe2011 | Changes again, making thefries thicker2013 | Introduces Satisfries, a versionwith less fat and fewer calories2014 | Drops Satisfries

TRIX CEREAL1954 | Invented2005 | Begins increasing whole grains to an eventual 11 gramsa serving from less than 8 grams2007 | Begins cutting sugar from 13 grams a serving to 10 grams2015 | Removes artificial colors and flavors

OREO COOKIES1912 | Invented2006 | Replacestrans fat withnonhydrogenatedvegetable oil2015 | Introducesthin versions,called Oreo Thins,with just40 caloriesper cookie

COCA-COLA1886 | Coke is invented1982 | Diet Coke is introduced1985 | New Coke debuts,in one of the biggest productfiascoes ever2005 | No-calorie Coke Zerodebuts, claiming to tastemore like the original recipethan Diet Coke2014 | Coke Life,sweetened witha naturalzero-caloriesweetener andcane sugar,comes to the U.S.

GGETS

t

2011 | Changes again, making thefries thicker2013 | Introduces Satisfries, a versionwith less fat and fewer calories2014 | Drops Satisfries

EO COOKIES| Invented

06 | Replacesfat withydrogenatedtable oil| Introducesersions,Oreo Thins,ustoriesokie

inal recipe

THECO

MPA

NIES

Healthy foodtastes betterwhen weprepare itourselves, astudy finds.

Food makers and restaurants are always hustling to tailor theirproducts to the latest trends in health, hoping that old-line brandscan stay relevant in this era of fast-paced change in food.

In the 1980s and 1990s, consumers were focused on low-fat di-ets as they were told reducing fat intake was the most importantthing they could do to improve their health. But that eventuallygave way to concerns about sodium, then sugar, then the artificial

sweeteners that replaced sugar, and now external factors likewhat the animals making up the food ate when they were alive.

Here are some popular foods and how they have evolved overthe years to keep pace with changing consumer demands onhealth and wellness.

—Annie GasparroEmail [email protected]

NOTYOURFATHER’SMCNUGGETSHow famous food products keep evolving to meet

consumers’ changing health priorities

P2JW291000-0-R00400-1--------XA


Pratt Industries, one of the largest corrugated box manufacturersin the United States, proudly supports the American food industry!

Export Food,Not Jobs

At the inaugural Global Food Forum hosted by The Wall Street Journal in New York City onOctober 6, Anthony Pratt, Executive Chairman of Pratt Industries, delivered the sponsor’sopening remarks. Here are the key points:

• America is the world’s food superpower and food production is its largest industry. It has salesgreater than the auto, movie, technology, and oil and gas industries — employing 4 millionAmericans and should get the attention it deserves.

• As big as it is, we can double the sales of the food production industry to $1.8 trillion and createmillions of new American jobs.

• America can do this by selling into the great Asian middle-class boom, as 2.5 billion more peoplehave access to greater disposable income.

• America can capture this opportunity by exporting more added value fruit, vegetables and meat,along with finished processed food such as infant baby formula — thereby playing to one ofAmerica’s greatest strengths, food safety.

• Food produced and packaged in America ensures its cleanliness and safety.

• Food exports are America’s greatest opportunity to expand the food industry, address tradeimbalances, compete for a larger share of the world’s expanding global food market and growjobs here in America.

Let’s start a national conversation abouthow to double the sales of the Americanfood production industry and createmillions of new American jobs.

Pratt Industries was proud to be the lead sponsor ofThe Wall Street Journal Global Food ForumGlobal Food Forum

ADVERTISEMENT

www.prattindustries.com

P2JW291000-0-R00500-1--------XA


As Crop Prices Fall, Farmers Focus on the SeedsNew services collect data from their members, giving growers information about what works best


santo and Syngenta AG patentthe genes they insert intoplants to protect their invest-ment. But in 2014, the first ofthose genes—one that enablessoybeans to withstand thepopular herbicide glyphosate,marketed by Monsanto asRoundup—saw its patent pro-tection expire after 20 years.

Newer varietiesNow, academic plant spe-

cialists like Donald Dombek,director of the Crop VarietyImprovement Program at theUniversity of Arkansas, areputting the formerly patentedgene into newer soybean seedvarieties, which farmers canbuy for about $28 to $34 abag, versus $44 to $68 a bagfor big companies’ latest vari-eties in the region. Mr.Dombek figures the universitywill sell about 190,000 acres’worth of generic Roundup-re-sistant soybean seeds acrossthe region this year, whichworks out to about 5% of Ar-kansas’ total soybean acreage.

Another plus: Unlike thelatest soybean seeds marketedby Monsanto, Syngenta, Du-Pont Co. and other companies,farmers using the Universityof Arkansas variety can savethe seeds they now harvestand replant them next year,yielding further savings.

Seed industry officials,however, don’t expect currentgeneric versions to displacethe big companies’ top brands,which use high-tech breedingtechnology to produce plantscapable of producing big har-vests. That means the compa-nies’ newest seeds typicallyyield the biggest crops.

“We’re not attempting tocompete with the big seedcompanies,” Mr. Dombek says.“We put this out there as analternative for our farmers.”

Mr. Bunge is a Wall StreetJournal reporter in Chicago.Email [email protected].

U.S. FARMERS, bogged downin one of their toughestpatches in years, are lookingfor a little magic—in seeds.

Some are returning to theold-fashioned variety, bredwithout genetic engineering,and back in fashion as farmersstrive to save money followingthree straight years of fallingprices for major crops likecorn and soybeans.

Others, meanwhile, are join-ing new subscriber-based ser-vices that collect seed andother detailed crop-related datafrom their farmer members,who then use the data to deter-mine which seeds and pesti-cides will work best on theirfields and at the fairest price.

The plunge in crop prices—corn has roughly halved sincethe start of 2013, while soy-beans have fallen by one-third—has chipped away atfarmers’ financial cushionsand led many to re-examinetheir costs across the board.

Plows and pencils“People are sharpening

their pencils,” says Brian Mar-shall, who farms about 4,600acres of corn, soybeans andwheat near Maysville, Mo.“When corn was double whatit is now, and soybeans were alot better than what they aretoday, you didn’t have to be asgood with a calculator.”

Many farmers already havefound ways to stretch the fer-tilizer applied to their fieldsand have switched to genericversions of popular pesticides.

Now, they’re scrutinizingseeds—often the most expen-sive component in raising acrop each year. Seeds havemultiplied in variety, complex-ity and cost in recent decades.As genetic engineering has en-abled plants to survive herbi-cides and fend off pests, corn-seed costs have nearly

BY JACOB BUNGE

quadrupled over the past 20years, and soybean seed costshave soared as well, accordingto data from the U.S. Agricul-ture Department.

Farmers today must con-sider thousands of seeds withvarying characteristics, withsome bred to flourish in cer-tain climates or soils, and oth-ers to resist plant diseases andbear different grain varieties.

A growing number of farm-ers thus are turning to newtypes of agricultural data-analysis services, such asFarmers Business NetworkInc., a San Francisco-basedstartup backed by GoogleVentures and other SiliconValley investors. FBN allowsfarmers to query thousands oftheir peers about seed andpesticide performance. Theidea, also being pursued bysuch startups as FarmersEdge and Granular Inc., is tocreate a Consumer Reports orKelley Blue Book of seeds.

“Farmers have basicallycrowdsourced the largestseed-performance databasethat’s ever existed,” saysCharles Baron, co-founder andhead of product for FBN.Members of the service havecontributed information onmore than 2,100 seed variet-ies, ranging from corn to cot-ton, rice and oats. The com-pany charges $500 a year andrequires members to sharedata on their own crop per-formances to access seeddata. Membership has tripledin the past 12 months toabout 2,800 farmers, Mr.Baron says, and more thannine million acres of farmfields are enrolled.

Top seed companies likeMonsanto Co. have developedsimilar services, capitalizingon their own expertise inplant science. Monsanto saysit has about 14 million acres’worth of farms paying for itsClimate Corp. suite of ser-

vices, and it expects to have25 million acres enrolled nextyear.

Some farmers are wary oftaking advice on seeds fromthe same companies that sellthem. FBN, for its part, con-tends that its independencemakes its service more attrac-tive to farmers.

Inside adviceOfficials for Monsanto’s Cli-

mate unit say that its privacypolicies keep farmers’ dataconfidential and that theirdata isn’t used to price seedsand pesticide products. Thecompany says its deep re-search on seed performance—Monsanto is the world’s larg-est supplier of seeds and cropgenes in terms of sales—al-lows Climate to draw on40,000 acres of research fieldsacross 20 states, in additionto thousands of other cropfield trials conducted by Mon-santo itself. That translates to

A sign along a field in Illinois shows the brand of Monsanto seed from which the corn was grown.

DANIELACK

ER/B

LOOMBE

RGNEW

S

better advice on seeds, offi-cials say. “The scale of ourproprietary field research isunmatched,” a Climatespokeswoman says.

Some industry watchers saythe rise of these types of data-analysis services in generalcould help farmers shave costsand raise bigger crops. Somealso assert that low cropprices have slowed adoption ofthe services. “When you lookat where current corn pricesare, people can’t fathomspending more on things theyaren’t certain will drive higheryields,” Piper Jaffray & Co. an-alyst Brett Wong says.

Farmers looking to lowertheir seed costs, meanwhile,could find help thanks to an-other development, a recentmilestone in agribusiness:Seeds with biotech genes arestarting to go off patent,clearing the way for genericversions with lower prices.Seed developers like Mon-

Out of WhackCorn seed prices have nearlyquadrupled over the past twodecades, while crop prices haveended up back roughly wherethey started. Seed price per acreplanted vs. crop price per bushel,indexed to 1996=100:


Sources: U.S. Agriculture Department (seeds);FactSet (crops)

Note: Crop prices are annual average, mostactive futures contract.

Seed price

Crop price

400

0

100

200

300

1996 ’00 ’05 ’10 ’15

FROM THE Minneapolis sub-urbs, Cargill Inc. runs oneof the biggest food empiresthe world has ever seen,spanning the supply chainfrom farm to table—ship-ping fertilizer to farmers,buying the crops that aregrown, processing grain intofeed for livestock and poul-try, and producing burgersand nuggets for the world’sbiggest restaurant chainsand retailers, including Wal-Mart Stores Inc. andMcDonald’s Corp.

As consumer tastes shift,Cargill is striving to make itsimmense size an advantagerather than a hindrance. Ithas revamped its corporatestructure and portfolio ofbusinesses as it responds toconsumer concerns in devel-oped countries about foodingredients and animal wel-fare, while investing to pro-vide more Western-style di-ets to developing parts ofthe world.

We spoke with Chief Exec-utive David MacLennanabout growing demand forfoods produced without ge-netically engineered crops,further investments neededin food-shipping infrastruc-

ture, and how Cargill can re-spond to climate change. Ed-ited excerpts of thediscussion follow.

Different needsWSJ: In developed countrieslike the U.S., more people areseeking food produced withless intervention, from or-ganic produce to cage-freeeggs, challenging companieslike Cargill to respond. But indeveloping parts of theworld, many people are juststarting to add meat to theirdiets and are looking forcheap, safe food. How doesCargill succeed on both endsof this spectrum?MR. MACLENNAN: When in-comes rise to several thou-sand dollars, people changetheir diets from a carbohy-drate-based diet to onethat’s more protein-based.In places like North Amer-ica, where as a consumeryou have plenty of protein,plenty of choices, you havepeople who want to know,“What’s in my food, whomade it, who suppliesthem?”

For us, that’s where youhave to be agile. Non-GMO,is that here to stay? Talkingto an egg farmer,McDonald’s is going to cage-free eggs—his dilemma is, is

that permanent? “I have toinvest, do I redo my barn?But if in 2020 nobody caresanymore, am I going to beable to make my return?”Going back to the supplychain, that is the chal-lenge—different parts of theworld have different needs,and there are differenttrends, and how can wemeet those needs doingbusiness in 70 differentcountries?

Personal choicesWSJ: How do you knowwhat’s the right thing to do?MR. MACLENNAN: More peo-ple are making their foodconsumption choices basedon their value system. So it’spart of, “I want to feelhealthy or identify with thefood that I eat.” The fact is, Ithink the food industry couldhave handled the non-GMOdebate in a more construc-tive way.

If you think back a fewyears, the strategy was, let’sfight it at the ballot box.Washington state, Califor-nia, Colorado, they had bal-lot initiatives on GMO label-ing. The message [of thoseinitiatives was], peoplewant to know. But the idea[of the food companies]was, let’s fight it at the bal-lot box, and the scienceshows that GMOs are notbad for you. But people whodon’t want GMOs don’t trustthe science.

There’s a growing groupof people who don’t wantGMO ingredients. So let’sdevelop a supply chain forthat, rather than say,“You’re wrong if you don’twant GMOs.”

If you think about con-sumption choices, healthcare and food are incrediblyintimate and personalchoices. And people need toand want to trust productsthat are providing themwith those choices and in-gredients. Our mind-set iswe’re going to empathize

AFoodEmpireIn aChangingWorldCargill’s CEO reflects on GMO food, recordharvests and climate change

BY JACOB BUNGE

and understand the con-sumer on what they want intheir food.

WSJ: Big harvests have pres-sured farmers’ incomes, andsome farmers in places likeSouth America have strug-gled to get financing. Whatabout the farming model mayneed to change to ensurepeople can stay in business?MR. MACLENNAN: Farmersare technologists. Many,many farmers have an iPadin their harvester or in theircombine, and they’re usingprecision agriculture. Andwe actually do a lot of thisin terms of sustainabilityand which parts of theirfarm have the most nutri-tious soil, the most mois-ture, where I need to plantthe seeds. They use GMOsas a tool for increased pro-ductivity.

And fewer people are go-ing into farming. The worldneeds farmers. There’s thefarm industry and the foodindustry. One of our ques-tions is, how do we make itexciting? Feeding the worldis exciting, it’s a noble pur-pose, but how do we commu-nicate that to a new genera-tion, where people areinterested in tech, or in con-sulting?

You have to make it excit-ing, to come work at a foodcompany. Technology andmodern farm techniqueshave helped take some pres-sure off, because yields have

come up over time, but youstill need people to go intofarming.

Getting it thereWSJ: Right now farmers arebringing in what could beanother record corn and soy-bean harvest in the U.S., andsupplies of poultry, pork andbeef are swelling. As grainbins fill around the world, isfood security meaningfullyimproving as a result?MR. MACLENNAN: Not at therate that it needs to. Theproduction areas—NorthAmerica, South America, theBlack Sea, where food isgrown—it’s really unbeliev-able. You are looking at afourth successive year ofbumper crops, great growingweather and significant sup-plies. It’s keeping the priceof food down. That’s a goodthing. At the same time,we—food and farming sup-ply-chain companies—needto do a better job of how dowe get it to where it’sneeded.

Infrastructure in Brazil forthe agricultural economy isnot yet where it needs to be.That’s one of the areas thatneeds investment. Ports,river terminals. It’s great ifBrazilian farmers can growcorn and beans and get it toChina to feed that country orget it to the Middle East. Butif you don’t have the infra-structure, the barges andports to get it out, it doesn’tdo any good.

WSJ: How do you see climatechange affecting food pro-duction and what you’re do-ing at Cargill?MR. MACLENNAN: Climatechange is here, and it’s goingto change how and wherefood is grown. Today, the U.S.corn belt is in Iowa, Illinois,Indiana. In 50 years, it maybe in Hudson Bay, Canada.

What does that mean forsupply-chain companies andfood production, and tryingto get in front of it? Howfarmers grow the food,where they grow it, the needfor analytical tools to helpthem respond to periods ofgreat weather or horribleweather—that’s where Car-gill can play a role.

WSJ: Free trade has been oneof Cargill’s guiding principlessince the company started151 years ago. How much isat stake in the U.S. election?MR. MACLENNAN: It’s one ofthe critical issues.

We have worked diligentlywith Secretary of CommercePenny Pritzker, who’s been abig supporter of the Trans-Pacific Partnership, Agricul-ture Secretary Tom Vilsack—the administration’s beengreat. I don’t know wherethis election will go, but Ihope that when a new ad-ministration is in place thereis a more open issue aroundTPP. I think it would betragic if we go backward rel-ative to trade, and I thinkthe world needs it.

David MacLennan says Cargill must be agile to meet different needs and trends around the world.

CHRISRA

TCLIFF

E/BL

OOMBE

RGNEW

S

Challenging TimesCargill’s annual revenue. After several flush years, sales fell more than10% in fiscal 2015 and 2016.

THEWALL STREET JOURNAL.Note: For years ended May 31.Source: Cargill Inc.

2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

25

50

75

100

125

$150billion

P2JW291000-0-R00600-1--------XA


Export Food,Not Jobs

PAID ADVERTISEMENT

BY ANTHONY PRATTExecutive Chairman of Pratt Industries

Iwas delighted to be part of the firstGlobal Food Forum held by TheWall StreetJournal. Pratt Industries was excited about

our sponsorship, which is a testament to theJournal’s leadership in reporting about food.Food is vital for America’s economy— a powerful engine

for job creation employing 20 million Americans. Ameri-can food is also crucial to global food security: ExportingAmerican-produced food to a needy world helps well-being, without exporting American jobs.

But the food production industry is neglected. In fact,Bill Gates said to me (and I agree) that the American foodindustry doesn’t get the attention it deserves. Yet lastyear, food manufacturing sales were $850 billion, makingfood production the biggest nongovernment industry inthe United States — bigger than movies, tech, auto, andoil and gas.

So food’s worth focusing on. And that’s why we spon-sored this forum. We want to shine a spotlight on Ameri-ca’s food industry to identify how it can grow, invest andgenerate evenmore quality jobs for the nation. We pro-pose starting a national conversation, including industry,government and civil society.

One goal is to double our food production sales to$1.8 trillion, creating millions of new American jobs. Achallenging goal, but achievable given the huge food ex-port opportunity. And when we increase manufacturinghere, we support American jobs.

The big opportunity to grow exports is that Asia hasover 2.5 billion people coming into the middle class whowant safer, cleaner American food. So Asia is a massive op-portunity, with countries like China, Indonesia, Vietnam,Korea and India wanting more high-quality food. If weview these Asian economies as major valued customersfor our safe and nutritious food, America can begin to ad-dress its $550 billion imbalance in goods traded with Asia.

But we are not alone in seeing this opportunity. In fact,in the past 15 years America’s share of global exports hasslipped, with countries like Brazil, New Zealand and sev-eral others lifting their food-export game and nipping atour heels.

By comparison, unbelievably, America’s food exports in

dollars have begun to decline. Last year, there was actuallyalmost 10% decline in the value of U.S. agriculture exports,compared to 2014—while Asia’s total food imports contin-ued to rise, especially high-protein food, which the Asianmiddle class craves. The reasons for this decline are com-plex, and part of the issue is America’s traditional focus onexporting bulk commodities like soybeans.

I believe America can leverage an important advantageif it pivots towards more high-value agriculture exportslike fruit and vegetables and processed exports like meat,dairy and infant formula. That’s because American foodstandards are the highest in the world. And the over2.5 billion Asians joining the middle class want safe, cleanfood produced and packaged in America.

Food processing and packaging also means more facto-ries and therefore more jobs for America. And for smallfood processors, export is easier and less risky thantrying to set up factories overseas. In China alone, thedemand for infant milk formula has grown by about 15%annually since 2010 and is currently $27 billion. Americanmilk cows are the most productive globally, so our dairyexports have the potential to take off. The U.S. has lessthan a 2% share of the global market for infant formula,where safety is critical.

Another big focus for food export must be California—the fruit and vegetable salad bowl of America. It’s also theclosest mainland American state to Asia, making shippingcheaper. To help California, we must address the mostimportant food production issues it faces — the ongoingdrought and, what many Californian farmers consider aneven greater challenge, the labor shortage. I’ve been toldthat in some areas, up to 20% of crops are left unpickedbecause of labor shortages, as it’s backbreaking work.

Could technology help? It’s already starting with dra-matic advances in robotic harvesting and processingtechnologies. Technology can also tackle water issues, andis being used in Israel and Australia to help boost water-use efficiency.

Improving freight and logistics efficiency on theWestCoast will also improve our competitive edge.

All these ideas are up for discussion, so let’s give this an“all-of-society” focus and create a vision for new, sustain-able jobs and investment here, while helping Americaboost global food security.

TheWall Street Journal news organization was not involved in the creation of this content.

P2JW291000-0-R00700-1--------XA


JOURNAL REPORT | GLOBAL FOOD FORUM

ple say if you eat 2,000 caloriesof salad, that’s preferable to2,000 calories of Twinkies.MS. MAYNE: Calories are im-portant, and FDA has donemany things to try to makethis really clear. The first isthe update to the nutrition-facts label, where calories willbe displayed much moreprominently, along with serv-ing-size information.

Other changes includemenu labeling, which comes tous through the Affordable CareAct, where now menus willhave to display calorie infor-mation for chain restaurantswith 20 or more locations.

MR. MURRAY: Isn’t the evidencethat, here in New York, afterMayor Bloomberg introducedit, people ate more? That ithad the opposite effect ofwhat was intended?MS. MAYNE: There’s researcharound this as well, and one ofthe things studies have indi-cated is if you only give calo-rie information but don’t tellpeople what a normal amountof calories is, they have a hardtime interpreting it. Putting“700 calories” on an entreedidn’t mean things to peoplewho didn’t know what normalcalorie intake is. So this is be-ing implemented.

The politics of food can bea touchy subject. On the onehand, most people care deeplyabout guarantees that theirfood is safe. On the other, notmany like being told what theyshould and shouldn’t eat.

Issues such as these are atthe heart of what the Food andDrug Administration sees as itsmission. Robert Califf, commis-sioner of food and drugs at theFDA, and Susan Mayne, direc-tor of the FDA’s Center for Food

Safety and Applied Nutrition,sat down with The Wall StreetJournal’s Matt Murray, to dis-cuss the challenges surroundingfood and public health. Editedexcerpts follow.

Healthy eatingMR. MURRAY: There’s a lot ofconfusion or conflicting infor-mation out there. How can theFDA make things better?MS. MAYNE: We have a bigpublic-health mission. We’re

concerned about things in ourfood supply like too much so-dium. How do we help pro-mote health by working withindustry to make a healthierfood supply? Often people fo-cus on the food-borne illness,contamination side of things,but don’t think about thechronic diseases.

In our country today, thetop killers are heart disease,cancer, diabetes—diet-relatedchronic diseases. I want to besure people realize thathealthy eating is a tool to re-duce the rates of these reallyprevalent chronic diseases. Iwant consumers to be confi-dent in the safety of produceand fruits and vegetables, andthat’s one of the things we’reworking on.

MR. MURRAY: Are there thingsthat have FDA approval rightnow that aren’t optimal?MS. MAYNE: Many industrieshave been trying diligently toreduce sodium in food. Thequestion is, what are the alter-natives? Industry has indi-cated to us there may be somechallenges we might be able tohelp with, making sure thatthere are healthy alternatives.

With the updated nutrition-facts label—added sugars willnow be declared—I would ex-pect that some companies willbe using fruit as a sweetener,rather than things like high-fructose corn syrup. So byputting something on a label,we can help incentivize ahealthier food supply.

Food labelingMR. MURRAY: Talk a littleabout the redefinition of theterm “healthy” and how thatprocess is shaping up with re-gard to food labeling.MR. CALIFF: What’s healthy inthe long run, I would bet, aswe get better data, will de-pend somewhat on your genesand what you eat. I’ve inter-preted what we’re doing at theFDA as mostly trying to nudgesociety in the right directionwith enticement and better in-formation. Hopefully, it’s be-ginning to work.MS. MAYNE: Healthy has a reg-

ulatory definition that said[the product] couldn’t exceed acertain amount of total fat,saturated fat, etc., containingbeneficial nutrients as well.Some of that science haschanged over time. I’ve workedin nutrition policy for almostthree decades, and the monu-mental shift in how we look atthat science is really striking.My training was in nutritionbiochemistry, and the term“fat” really doesn’t mean any-thing. There’s polyunsaturated,monounsaturated, saturated,omega-3’s, omega-6’s. Eachone of those means somethingspecific to me.

But what’s difficult is tak-ing that complexity and givingit to consumers in a way thatthey understand. What the sci-ence really shows is that thetype of fat matters, and thathigher-fat foods can behealthy as long as the predom-inant sources of fat are mono-unsaturated and polyunsatu-rated fatty acids.

So, under the old regulatorydefinition of healthy, certainfoods would not have qualified,while the dietary guideline saysthese are healthy foods. That’swhy the FDA wants to relook atthis issue of the term healthy.What should it mean? What dopeople believe about that? Thisis again a regulation to reallymake sure that that reflects themost current science.MR. MURRAY: What are thethings most concerning to youin the American diet?MR. CALIFF: The dietary pat-tern. A lot of it is tied to so-cioeconomics, where you haveso-called food deserts wherepeople can’t even get to aplace that has generallyhealthy food. And it worriesme a lot that there seems tobe an inverse relationship be-tween the price of food and itsnutritional value. That is, thethings that are best for ustend to be more expensive. So,poor people are eating muchworse diets.

Good and bad caloriesMR. MURRAY: There’s a lot ofdebate about calories and thequality of calories. A lot of peo-

TheNutritionMission at the FDARobert Califf and Susan Mayne say the agency can—and should—give consumers more incentives to eat healthier

chemicals or preservatives orthings that you have to have.Can you go all the way andmake everything totally clean?MS. MORRISON: We do believethat consumers today wantsimplicity, and they wantcleaner labels. So we have,similar to Panera, been takingout the artificial colors andflavors, BPA [bisphenol A, achemical often used in packag-ing] out of our cans, reducedhigh-fructose corn syrup.Things that are on consumers’minds.

Food is art and science. So,you take something out, youhave to work with the recipeto make sure that you’re pro-viding delicious food withcleaner labels. And so we workat that constantly.

We do not have preserva-tives in our soup. We sterilizeit. It’s cooked for safety. Wecall that “prepared with care.”

It’s also a matter of educat-ing people. They want to knowwhat’s in their food. We have awebsite and an app, whatsin-myfood.com, where people canactually go and click on anyproduct that we make, andfind out right down to wherethe food is sourced, how it’smade, what ingredients weuse, and why.

So, there’s an education tothat. It’s not perfect yet, butit’s a good start. And we’llcontinue to build out moreproducts on it and enhancethe information as we get intomore traceability and ethicalsourcing.MR. SHAICH: I think in our caseit came down to a fundamen-tal commitment. And it camefrom the very top, from theboard, and from me as theCEO, that we really wantedclean food.

We wanted it free of any ar-tificial colors, any artificialflavors, any artificial preserva-tives and any artificial sweet-eners.

We essentially introducedthe policy two years ago. Wesaid, “If we’re going to do this,let’s make it comprehensive.And let’s make it so that theconsumer doesn’t have to reada label.”

They know when they walk

in, there’s a certain fundamen-tal commitment.

We simply said, “We’re go-ing to take anything out ofthere that people essentiallyquestion.”

MR. MURRAY: What aboutGMOs?MR. SHAICH: We’ve beenaround this debate. I’ve seenarguments on both sides of it.Our view is we simply are nottrying to draw the conclusionon GMOs, from our perspec-tive. What we want is GMO la-beling. For us it’s a matter oftransparency.

We’re not taking a unilat-eral position that we’re re-moving all GMOs. We are say-ing we very much supportGMO labeling.MS. MORRISON: GMO, for me,is more a transparency issuethan an ingredient issue.You’ve got 90% of the soy,corn and sugar-beet crop inthis country that’s GMO. Peo-ple have been eating that formore than 20 years, and it’sfine. But they want to knowwhat’s in their food, and theyhave the right to know. So wehave declared that we are la-beling.

Changing consumer tastesand priorities are shaking upthe food industry. The hungerfor healthier and fresher fareis growing, as well as trans-parency about what food con-tains. What opportunities—and challenges—does thischanging situation create forbig companies that put foodon the plate?

Matt Murray, deputy editorin chief of The Wall StreetJournal, spoke with Denise M.Morrison, president and chief

executive officer of CampbellSoup Co., and Ronald M. Sha-ich, founder, chairman andchief executive of PaneraBread Co., to get their take onthe state of the food businessand where they think it’sheaded.

Here are edited excerpts oftheir discussion.

New tastesMR. MURRAY: Let’s start bytalking about your customer.Who are you trying to serve,and how are they changing?MS. MORRISON: Our customersare really different today.Mom, Dad and two kids and aLabrador retriever are 24% offamilies. The family has defi-nitely changed. I would saythat we focus on two cohorts,baby boomers and millennials.

More important, when youlook under the hood, there areall different kinds of families.That has fundamentally trans-formed the way people eat.

MR. MURRAY: What does thatmean for you? Are you goingin other directions?MS. MORRISON: One of themost fundamental shifts thathas happened is the change inconsumers’ preference forhealthier food. We see thismanifested in both fresh food,

and natural and organic. And adesire for cleaner labels. Thathas prompted acquisitionsthat we’ve made in the pastfive years.MR. SHAICH: Today’s consumeris really in conflict betweenwhat they think they shouldeat and what they want. Or-ganizations that can resolvethat conflict for them—givethem food that is both whatthey want and [what they be-lieve they need]—are the or-ganizations of the future.

MR. MURRAY: How contradic-tory is the consumer in want-ing both healthy food and foodthat’s not as healthy?MR. SHAICH: Let me start andsay that I think we all knowthere is no such thing as anaverage. The reality is there

are niches. The largest singleniche in the marketplace todayis that the consumer wantsfood that is both good forthem and is simply good.

Each of our organizations,Denise’s and mine, and each ofour brands, we have to figureout who we are, what westand for and what consumerwe’re in alignment with. Pan-era isn’t the place for the av-erage, or for everybody. It isfor a consumer that is particu-larly interested in resolvingthat conflict. Food that’s bothgood and good for you.MS. MORRISON: Health andwellness does mean differentthings to different people. Wetend to treat eating and dietsas one size fits all. But the hu-man body is very personal-ized. And so a food regime forme could look different thanthe one for Ron.

I think that with technologythat’s coming there’s a wholeworld opening up to have adeeper understanding of theimpact of nutrition for betterliving, better-quality living.

MR. MURRAY: Are you talkingabout technology for me, theconsumer, or for you, the com-pany?MS. MORRISON: There’s been69 million wearables sold thisyear. People are literally track-ing everything. People are be-coming more empowered, andknowing what’s going intotheir body.

Cleaning up mealsMR. MURRAY: You’ve both haddifferent clean-food and label-ing efforts. How hard is it totake ingredients out? There’sgot to be a certain amount of

The FoodConflictConsumers FaceTwo CEOs on what people think they should eatvs. what they actually want to eat

ROBERT CALIFF | The FDA is ‘trying to nudge society in theright direction with enticement and better information.’

DENISE M. MORRISON | ’We do believe that consumers todaywant simplicity, and they want cleaner labels.’

GABE

PALA

CIO/D

OW

JONES

(4)

RONALD M. SHAICH | ‘We have to figure out who we are,what we stand for and what consumer we’re in alignment with.’

SUSAN MAYNE | ‘In our country today, the top killers areheart disease, cancer, diabetes—diet-related chronic diseases.’

At The Wall Street Journal’s recentGlobal Food Forum, Journal editors andreporters talked with leaders in thebusiness of food about the principalopportunities and challenges they face.Highlights of the conference appear onthese pages and, with additional

interviews and video excerpts, at WSJ.com/LeadershipReport.

TheWall Street Journalthanks the sponsors of theGlobal Food Forum for their

generous support.

FOR MORE INFORMATION, PLEASE VISIT:GLOBALFOOD.WSJ.COM

© 2016 Dow Jones & Co. Inc. All rights reserved. 2C8415

P2JW291000-0-R00800-1--------XA


Pratt Industries is proud to be the lead sponsor of TheWall Street Journal Global Food Forum


Thank You!ThePrattGroup

Our corrugated boxes save money and save the environment

Thanks to all who participated in the inaugural Global FoodForum hosted by TheWall Street Journal. The team at Prattwasproud to sponsor a conference with somany great leaders toraise the profile of the important issues facing the American foodindustry. We have started a national conversation that we hopewill lead to lasting change that bolsters America’s economy andglobal food security. We believe in the American food industry!

At Pratt, we also believe in:CreatingNew JobsPratt employs 11,000 people in well-paying, green-collar manufacturing jobs.

InvestmentPratt has invested $5 billion in sustainable infrastructure, including a newstate-of-the-art paper mill that opened earlier this year, which brings us to atotal of 67 factories in America.

GrowthOur profits are reinvested in growth, enabling us to create additional jobs,openmore factories and fund philanthropic activities.

RecyclingWe are the sole major American paper company in the industry to produceonly 100 percent recycled paper. As a result, we save approximately 68,000trees a day— that’s enough to cover about 120 football fields — and divertmore than 1.5 million tons of waste paper from landfills every year.

ANTHONYPRATTExecutive Chairman of The PrattGroup

Sincerely,

Learn how your company can benefit from using Pratt Industries’100% recycled packaging, and join us in making your business

more profitable and environmentally friendly!

ADVERTISEMENT

TheWall Street Journal news organization was not involved in the creation of this content.

P2JW291000-0-R00900-1--------XA



How can meat companiesbest respond to rapidly chang-ing consumer priorities aboutanimal care and healthy prod-ucts?

For insights into the ques-tion, The Wall Street Journal’sJason Anders spoke with JimPerdue, chairman of PerdueFarms Inc.

Here are edited excerpts oftheir conversation.

Slashing antibioticsMR. ANDERS: We’re at thisunique moment where con-sumers are scrutinizing likenever before what goes intothe food they eat. And there’sa big focus on antibiotics.They’re a very effective toolfor fattening chickens andfighting off disease, but there’san increase in attention nowand some debate over whetherall this exposure to antibioticsin the food chain is weakeningour ability to use them to fightdisease in humans.

So you have been on a verylong journey to banish antibi-otics. We want you to tell ushow you did it.MR. PERDUE: We had enoughevidence that this was becom-ing an issue that was not afad. We needed to do some-thing about it. We called itProject Wheaties. The reasonwe called it Wheaties is be-cause I believe a consumerwill let us do to our chickenswhat they’d do to their kids.

What we were doing to ourchickens, we were giving themantibiotics every day in thefeed, regardless of whetherthey were sick or not. But aconsumer—they don’t put an-tibiotics in the cereal everymorning.

MR. ANDERS: You’re still in thebusiness of selling large chick-ens. How do you get the chick-ens big without using the anti-biotics?MR. PERDUE: When we took itout, there was no difference inthe growth. We had been us-ing it because we had alwaysused it, which is not a goodreason to do anything.

They also have to have pas-ture access. They have to havefull light, six hours of sleep atnight or there are density dif-ferences. And there are en-hancements, things that thechickens can play with in thehouse. That may sound funny,but what we have found isthat the organic chickens aretwice as active as our chickenswere in our houses which haveno windows.

When we embarked on theno-antibiotics-ever program,we went to an all-veggie diet.We replaced the animal by-products with more soybeanmeal. We replaced the lardwith corn oil or soybean oil.We found it actually gave it abetter flavor.

MR. ANDERS: Is the price ofPerdue chickens any higher be-cause you made this no-antibi-otics push?MR. PERDUE: If it is or isn’t,it’s because of the market ingeneral, and whatever pre-mium we may enjoy that theconsumer is willing to give us.Most of the time you invest inthings hoping down the road,they will pay off with marketshare, and that’s most impor-tant to us.

What we’ve found is thatthis has created somewhat ofa revolution in the last coupleof years. Chick-fil-A, for exam-ple, is a customer of ours, and

only way it’s going to work.Consumers can’t get it done.

MR. BUSSEY: What are com-panies doing right or wrongin analyzing their sourcing?MR. FIELDS: We’ve been disap-pointed at the general level ofcompliance to basic standardsacross the industry. If you takea look at all the facilities thatare actually food-safety au-dited, it’s 10% to 12% of all thefacilities registered with theFood and Drug Administration.And there’s a lot of companiesthat do business that aren’tregistered.

So, in terms of a safe prac-tice and audit, not enough ofthat is being done. It’s so pa-per-intensive when you havethousands of suppliers, it justhasn’t been done till now. Theconsequence is an unsuper-vised supply chain. Not every-where. Many companies dothis just right. But in general,there’s not enough compliance.

MR. BUSSEY: A majority ofAmericans say they would notbuy a food product fromChina. But a lot of our foodcomes from China. People justare not aware of where theirfood comes from, right?MR. FIELDS: Absolutely cor-rect. We [Americans] eat onaverage 2,000 pounds of foodper person per year. That’s abig number. Almost 400

pounds of that comes fromoutside the U.S. one way oranother. And because of thesemultiple points of distributionwhere a grower in China sendsit to a broker in China, whosells it to a broker in Europe,who then sends it to the U.S.,there’s absolutely no way toknow where that came from.

Here’s a stunning fact: Sev-enty-some-odd percent of theingredients that go into sup-plements and vitamins aresourced in China or India. Howmany of you will now quit?

Food-safety officerFROM THE AUDIENCE: MarkBaum, with the Food Market-ing Institute. As an industry,we’re only as strong as ourweakest link. So, in an erawhere we’re sourcing moreglobally, and locally—becauseof consumer preferences—thatexposes us. What can we as anindustry do to advance a cul-ture of food safety throughoutthe supply chain?MR. FIELDS: If I were CEO of afood firm, the food-safety per-son in my company would be-come an officer and a directreport. He or she would be-come as important to me asmy general counsel. I wouldgive him the ability to pull onthe cord of the bus and stopthe bus at any moment. Untilthat’s done, honestly, we don’thave a culture of food safety.

The food industry has be-come so globalized that muchof the U.S. public doesn’t evenknow where its food comesfrom, much less whether it issafe. Randall K. Fields, CEOof ReposiTrak Inc., a com-pany that helps retailers andsuppliers in the food, phar-maceutical and supplementsindustries comply with fed-eral requirements, sat downwith John Bussey, associateeditor of The Wall StreetJournal, to discuss some ofthe challenges. Edited ex-cerpts follow.

Organic concernsMR. BUSSEY: If I presentedyou with a head of lettuce ina package that said organic,would you as a consumer beinterested, or would you see itas a lethal weapon?MR. FIELDS: It’s much closer tothe latter than the former.Most heads of lettuce have rel-atively indeterminate origin.So, for people who know toomuch about the supply chain,it’s not something you’d bewilling to eat without a lotmore knowledge.

In supermarkets and otherretail food sources, they don’thave a lot of transparency intheir supply chain. Their jobis to keep a product on theshelf. So if they’re short oncantaloupe, their buyers willcall the broker who in turnwill find cantaloupe. Maybe itcomes from a farm that theyshould be doing businesswith, and maybe not. Becauseof the opacity of the supplychain, the risks are higherthan any of us would like.

It’s going to get fixed. It’seither going to get fixed be-cause, under the new FoodSafety Modernization Act[signed into law in 2011], theFood and Drug Administra-tion and their partners at theDepartment of Justice willdress a few executives up inorange and silver, or becausethere’s pressure from retail-ers—we see that—to improvethe compliance and safety ofthe supply chain. That’s the

The food industry is con-stantly adapting to changes inconsumer tastes and priorities,and today a big part of that isadjusting to resistance amongconsumers to foods made withgenetically modified ingredi-ents.

Mike Frank, senior vicepresident and chief commer-cial officer of Monsanto Co., aglobal leader in seed sales andcrop genetics, talked with TheWall Street Journal’s Chicagobureau chief, Joanna Chung,about the GMO debate andwhat other technological ad-vances are in store for agricul-ture. Edited excerpts of theirconversation follow.

How GMOs fit inMS. CHUNG: Why is it that thenon-GMO side of the debateseems to have prevailed?MR. FRANK: If you look at thescientific journals, the regula-tors around the world, they’veall come to the same conclu-sion—that GMOs are safe from

a consumption standpoint,they’re safe in the environ-ment, and they offer farmersreal benefits. And so, from ascientific consensus stand-point, there’s really no argu-ment on that from my per-spective anymore.

Now, some people do wantto buy organic or non-GMO,and I think that’s great. Wesell a lot of seed that’s non-GMO.

Often what happens is,there’s a conversation that it’skind of good versus evil, orgood versus bad. Farmers ev-erywhere, whether they’re or-ganic or conventional or usingGMOs, they’re all trying to dothe same thing: They’re tryingto produce successful har-vests, they’re trying to man-age pests, they’re trying to dothe right thing in the environ-ment, and they’re trying tocreate a viable businessmodel, so that they can handit down to the next genera-tion.

And so it’s not one systemis good and one system is bad.I think all of the systems aregood. And ultimately, in orderto feed a growing planet, weneed every farmer on theplanet, whether they’re or-ganic or conventional, or theyuse GMOs, to be more success-ful going forward.

MS. CHUNG: Do you think it’s agood thing for people to wantto know where their foodcomes from, and have more in-formation about it?MR. FRANK: Yes. It’s great thatconsumers are interested inwhere their food comes from.The more the agricultural in-dustry and the food compa-nies can help educate the pub-lic and give them honest,factual information, so thatconsumers can then choosewhat they want, then I thinkthat’s fantastic.

I also think affordability isa very important issue. A lotof our population in the U.S.

TheProblemWithAll-or-NothingGMOMonsanto’s Mike Frank says there is a danger inmaking this a debate of good vs. bad

or in the Western world hasthe luxury of making economicchoices. And that’s great. Butif the idea is that it should allbe one way, and it should be away that’s more costly, then Ithink that is a problem.

Families want to feed them-selves and their childrenhealthy, nutritious and afford-able food. So, it’s a matter of,how do you create the envi-ronment so that farmers andfood companies can ultimatelybring that to the consumers?

MS. CHUNG: I think what you’resaying is that in order to meetall those demands of afford-ability as well as nutritiousfood, that we’re going to con-tinue in the direction of havingmore technological interven-tion in our food.MR. FRANK: Words like techno-logical intervention, thatsounds kind of scary. We needinnovation.

Most farmers make deci-sions at the field level. They’llgo in with the same seed, thesame fertilizer rate, the samepesticides, and they’ll kind oftreat the field as a field.

Agriculture is changingdramatically right now. Bigdata is really impacting agri-culture. And so, our view isthat in the very near future,farmers will farm on thesquare meter—they’ll makeseed decisions and fertilizerdecisions and pesticide deci-sions on [the level of] thesquare meter [as opposed tothe entire field]. And that’llmake farming more efficientand more productive.

The next big thingMS. CHUNG: What are you mostexcited about, in terms of thenext technological advances?Or what are the most near-term advances that we’reprobably going to see?

MR. FRANK: Data science in ag-riculture is probably at the topof the list for us. We thinkthat by understanding the soilconditions, the weather, andbeing able to track year afteryear exactly how all of thesethings combine to impact theultimate harvest, this willchange agriculture. It’ll changeit for the equipment compa-nies, it’ll change it for the seedcompanies, for the crop-pro-tection companies and for thefertilizer companies. This isgoing to be an extremely im-portant change that’s comingquickly to agriculture, and it’svery exciting.

I also think it’s the integra-tion of solutions. A lot of thesolutions that farmers use arevery fragmented. They go buytheir seed from one supplier,they buy their fertilizer fromanother supplier, and theircrop-protection products.With data science, being ableto provide in a seamless waythat solution on the squaremeter, that’s going to be veryimportant.

So, it’s not just the data sci-ence, it’s also how can youbring it together in a way thatthe farmer can ultimatelytranslate it into the field in apractical way?

MS. CHUNG: In terms of globalmarkets, what are the hurdlesto offering our technology andour experience with agricul-ture in markets like China?MR. FRANK: China has 20% ofthe world’s population, and9% of the arable land. Theywant to try to be self-suffi-cient, but they’re not. So thereality is China imports a lotof grains from around theworld. A lot of our soybeansgo to China.

And this is the same in Eu-rope. A lot of people think,well, Europe doesn’t haveGMOs. Europe is not self-suffi-cient either.

And so, whether it’s Chinaor Europe, most of the grainsthey’re importing are GMOs.Their regulators have lookedat the science of it and said,yeah, this is fine. But becauseof political and societal pres-sures, they haven’t allowedtheir farmers access to thetools.

GABE

PALA

CIO/D

OW

JONES

(3)

Growing in the U.S.The genetically engineered share of the these cropsby year in American agriculture

Biotech BoomAcreage in biotech crops around the globe by year.Developing countries had a slower start but havecaught up to and passed industrial countries.

THEWALL STREET JOURNAL.Source: U.S. Agriculture Department

Source: Clive James and ISAAA, Brief No. 51: “Global Status ofCommercialized Biotech/GM Crops: 2015”

100%

0

25

50

75

2000 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16

CottonCorn

SoybeansIndustrial countriesDeveloping countries

1996 2000 2005 2010 ’15

0

100

200

300

400

500million acres

WhereOur FoodComes FromThe problem is that most of the time, we haveno idea, says Randall Fields of ReposiTrak

RANDALL K. FIELDS | ‘Because of the opacity of the supplychain, the risks are higher than any of us would like.’

MIKE FRANK | ’It’s not one system is good and one is bad. Ithink all of the systems are good.’

we do about 20% of their vol-ume. And they came to usonce they saw what we weredoing and they wanted no-an-tibiotics-ever chicken.

So they made a commitmentover five years. Once theymade their statement, then youhad a lot of other [chains makesimilar statements]. You’reseeing sort of a domino effectbecause now somebody largeenough can provide enough no-antibiotics-ever product to sat-isfy a large customer.

Humane treatmentMR. ANDERS: The other pieceof this that people are veryfocused on now is animal wel-fare. Walk us through some ofwhat you’re doing on thatfront.MR. PERDUE: We have a goal todouble the activity of ourchickens in the next twoyears. We’re putting windowsback in our chicken houses,for natural light. We’re put-ting enhancements in thehouses, as I mentioned. Balesof hay. Swings.

Reducing stress. We’re go-ing to use CO2 combined withoxygen to put the chickens tosleep before they are killed,versus electricity.

We give chickens what theyneed, which is a roof, food andwater. The question is, whatdoes a chicken want? That’sthe question we’re asking.

ChickensWithoutAntibioticsJim Perdue on the impact of the change—onboth the chickens and the market

JIM PERDUE | ‘We have a goal to double the activity of ourchickens in the next two years.’

P2JW291000-0-R01000-1--------XA


OurCorrugatedBoxes SaveMoneyandSave the Environment

Pratt IndustrieswasProud to be theLeadSponsor of the Inaugural Global Food Forum


Learn how your company can benefit from using Pratt Industries’100% recycled packaging, and join us in making your business

more profitable and environmentally friendly!

P2JW291000-0-R01100-1--------XA


now. Measures for protectingintellectual property, or mak-ing sure that we have a freeand open internet also weren’tincluded. There wasn’t an in-ternet when we negotiatedNafta. So this is a chance forus to raise the standards ofsome of our current tradeagreements with existingtrade partners, as well as es-tablish new and very highstandards with other partners.

Staying competitiveMS. BLUMENSTEIN: You say theU.S. in a way is uniquely posi-tioned here. We almost under-estimate the diversity of whatthe U.S. produces.MS. VETTER: We are blessedwith good supplies of water.We have rich and fertile soils.We can grow cold-weathercrops and tropical products.

The vastness and the rich-ness of our agriculture pro-duction is often underesti-mated. But because of that,when we do negotiate theseagreements, you see benefitson everything from grains andstaple products to specialtycrops—tree nuts, fruits.

MS. BLUMENSTEIN: AnthonyPratt, executive chairman ofpaper and packaging companythe Pratt Group, said earliertoday that he’s concerned thatexports from the U.S. are slip-ping a bit. Are you concerned?MS. VETTER: Well, I think theslippage in recent numbers, inpart, is by value, and reflects areal drop in commodity prices.But if we don’t move forwardwith these free-trade agree-ments, we will fall behind.

During our TPP negotia-tions, Australia and Japancompleted and implemented abilateral free-trade agreement.And so today, a pound of beeffrom the U.S. going to Japanpays a 10% higher tariff thanthat same pound of beef com-ing from Australia.

And Australia, one of ourkey competitors in SoutheastAsia in dairy and wine, has theAsean free-trade agreement,where they will have zero-tar-iff access for wine and dairy,and we will fall behind. If weimplement TPP, we will stayon a level playing field withour competitors in that region.If we stand still, we won’t.

session. And agriculture is re-ally critical in that fight.

I grew up listening to pricereports every morning aboutwhether pork-belly futureswere up or down, and whatthe price of wheat and cornwas. But in that same reportevery morning, U.S. farmersand ranchers hear aboutwhether there’s a drought inBrazil or too much rain in Rus-sia. They firmly understandthat they are competing in aglobal commodity market. So Ithink there’s a real opportu-nity to continue to build thesupport and momentum, andthere is time to get this done.

MS. BLUMENSTEIN: We’re nothearing a lot about agricultureand the benefits of trade in thecurrent discourse.MS. VETTER: I think that’sright. Although I would saywe’ve been working veryclosely with agriculture stake-holders who are getting theword out about what this

means, and the income returnsto the average American farmfamily that will come fromTPP. There are certainly partydifferences on trade in gen-eral. Typically any tradeagreement that passes does sowith a bipartisan effort. Andwe will be looking for thatsame effort here.

MS. BLUMENSTEIN: Could wetalk a bit more about Canadaand Australia, which are partof TPP? You said earlier thatwe really haven’t renegotiatedtrade pacts with them sincethe North American FreeTrade Agreement.MS. VETTER: You’re right thatwe already have free-tradeagreements with several of thecountries that are part of TPP.And TPP gives us a chance toupdate those agreements.

When we negotiated Nafta,we didn’t put inside tradeagreements the labor and en-vironmental commitmentsthat we put in agreements

GABE

PALA

CIO/D

OW

JONES

DARCI VETTER | ’You see benefits on everything from grainsand staple products to specialty crops—tree nuts, fruits.’


Utilize Mobile Trader, the #1 mobile trading app in the App Store, to set custom alerts and monitoryour watch lists on the go. Get live updates straight to any device so when the market moves, you’ll beready to move with it.

When the market calls, answer it.

The #1 trading app accolade applies to thinkorswim® mobile, also known as TD Ameritrade Mobile Trader. See tdameritrade.com/600offer for offer details/restrictions/conditions and information onaccount fees/expenses. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. TD Ameritrade, Inc., member FINRA/SIPC. © 2016 TD Ameritrade IP Company, Inc.App Store is a service mark of Apple, Inc.

Download the app or visit tdameritrade.com/mobile

Trade commission-free for 60 days when you open and fund an account.

The White House is in anuphill battle to win support inCongress this year for thesweeping 12-nation tradeagreement known as theTrans-Pacific Partnership, orTPP. Darci Vetter, chief agri-cultural negotiator in the of-fice of the U.S. Trade Repre-sentative and a key figure inthe negotiations, is helping tolead that charge.

She sat down with RebeccaBlumenstein, deputy editor inchief of The Wall Street Jour-nal, to discuss TPP and whyshe thinks it will level theplaying field for U.S. farmersand food companies.

Edited excerpts follow.

Sensitive spotMS. BLUMENSTEIN: You werethe lead negotiator for the ag-riculture section of the Trans-Pacific Partnership. You alsowere born and raised on afarm in Nebraska, so you havea unique perspective on agri-culture. It seems the success ofthe negotiations on agricultureis kind of a hidden story in

TPP that not enough peopleunderstand, from what you’retelling me.MS. VETTER: I think TPP reallyprovides an opportunity forU.S. agriculture to access somevery high-income, high-valuemarkets, but also to get a foot-hold into emerging economiesin Southeast Asia throughVietnam and Malaysia. Viet-nam and Malaysia right nowbuy our feed grains, skim-milkpowder and basic commodi-ties. But as their populationsgrow and more people enterthe middle class, we see ahuge opportunity to sendthem more protein, freshfruits and vegetables.

MS. BLUMENSTEIN: Let’s talkabout Japan. You were sayingevery country has a sensitivesector. Japan is famously pro-tective of rice. But you gotthem to blink a bit on this.MS. VETTER: I think it’s impor-tant for people to rememberthat the second part of agri-culture is culture. And whenyou look around the world, the

most protected markets, thehighest tariffs, the most diffi-cult barriers are often in thatagriculture sector.

If you look at both Canadaand Japan, which have somevery closed markets, for thefirst time in a free-trade agree-ment every product without ex-clusion was on the table andwas liberalized in some way.Never before in a free-tradeagreement had Japan openedits sectors for beef, pork,wheat, rice, dairy or sugar. Allof those products are on the ta-ble in TPP, with significant newaccess. In our previous tradeagreements with Canada, theydidn’t offer any access to dairyor poultry or eggs. We willhave access in all three sectorsif TPP is entered into force.

MS. BLUMENSTEIN: Many peo-ple aren’t optimistic about theprospects for TPP. What hap-pens if it isn’t passed?MS. VETTER: I’m an eternal op-timist. And there is in fact anarrow window to be able toapprove TPP in the lame-duck

HowU.S. FarmersMayGainFromTPPDarci Vetter argues that the trade pact wouldexpand access for American agriculture

2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15THEWALL STREET JOURNAL.Source: World Trade Organization

Feeding theWorldGlobal trade in agricultural products more thandoubled from 2005 to 2014 before a decline lastyear. Annual totals:

Top 10 agricultural exporters in 2015

0

250

500

750

1,000

1,250

1,500

1,750

$2,000 million

Argentina

India

Australia

Thailand

Indonesia

Canada

China

Brazil

European Union*

U.S. $163158

80

73

63

39

36

3635

35

Pct. ofworldexports Total (In billions)

10.4%

10.0

5.1

4.6

4.0

2.5

2.3

2.3

2.2

2.2

*Excludesshipments

within the EU.

P2JW291000-0-R01200-1--------XA

ADVERTISEMENT A4 ,397-MILE FOOD DRIVE TO...

Documents

Transcript of ADVERTISEMENT A4 ,397-MILE FOOD DRIVE TO...