Facts & Figures on Corporate Agribusiness & Corporate Power

Date: Sun, 14 Jan 2001 22:11:58 -0800
From: Albert Krebs <avkrebs@earthlink.net>

BETWEEN THE FURROWS
Plowing the Fertile Factual Fields of Corporate Agribusiness
An AGRIBUSINESS EXAMINER Supplement
A.V. Krebs,
Editor\Publisher

Issue # 1
January 15, 2001

AGRIBUSINESS:
"The term agribusines means more than just owning and cultivating the land
to raise crops and livestock (agriculture production). The term also refers
to the financing of agriculture and the manufacturing, transporting,
wholesaling, and distribution of farm machinery,fertilizers, chemical
poisons, seed, feed and packaging materials (agricultural inputs).
Agribusiness also manufactures, processes and markets food (agricultural
outputs)."
--- A.V. Krebs, The Corporate Reapers: The Book of Agribusiness

CORPORATION:
"That inglorious device for obtaining individual profit without individual
responsibility."
--- Ambrose Bierce, The Devil's Dictionary

1999 SALE REVENUES:
TOP TEN CORPORATE AGRIBUSINESS CORPORATIONS
[Company, rank among all U.S. public corporations, sales revenues]

1. WAL-MART STORES (2) . . . . . . . . . . . . . . . . . . . . . . $ 165.0 BILLION
2. PHILIP MORRIS COS. (9) . . . . . . . . . . . . . . . . . . . . . .$ 61.7 BILLION
3. BANK OF AMERICA (11) . . . . . . . . . . . . . . . . . . . . . $ 51.6 BILLION
4. KROGER (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45.3 BILLION
5. AMERICAN INTERNATIONAL GROUP (16) . . . . . $ 40.8 BILLION
6. PROCTER & GAMBLE (18) . . . . . . . . . . . . . . . . . . . .$ 39.1 BILLION
7. ALBERTSON’S (22) . . . . . . . . . . . . . . . . . . . . . . . . . $ 37.4 BILLION
8. SAFEWAY (40) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 28.8 BILLION
9. DU PONT DE NEMOURS (46) . . . . . . . . . . . . . . . . . $ 26.9 BILLION
10. CONAGRA (54) . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 24.9 BILLION

SOURCE: FORBES 500S - Ranking the Top U.S. Companies, FORBES, April 17, 2000

1999 FOOD DISTRIBUTOR LEADERS
BASED ON PERCENTAGE OF RETURN ON CAPITAL

5-YR. AVERAGE LATEST 12 MOS.

ALBERTSON’S . . . . . . . . . . . . . . . . . . . . . . . . ..9.7% 9.1%
BRINKER INTERNATIONAL . . . . . . . . . . . . .11.5% 15.1%
CASEY’S GENERAL STORE . . . . . . . . . . . . . 10.3% 10.0%
DARDEN RESTAURANTS . . . . . . . . . . . . . . . . 8.8% 14.7%
JACK IN THE BOX . . . . . . . . . . . . . . . . . . . . . 19.4% 221.%
MCDONALDS . . . . . . . . . . . . . . . . . . . . . . . . . .12.7% 13.0%
OUTBACK STEAKHOUSE . . . . . . . . . . . . . . . . 25.8% 24.4%
PERFORMANCE FOOD . . . . . . . . . . . . . . . . . . 11.4% 10.0%
ROYAL AHOLD . . . . . . . . . . . . . . . . . . . . . . . . . 8.3% 5.7%
SAFEWAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4% 12.7%
SUPERVALUE . . . . . . . . . . . . . . . . . . . . . . . . . .10.9% 9.1%
SYSCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16.4% 18.5%
WENDY’S INTERNATIONAL . . . . . . . . . . . . . .10.7% 12.0%
WAL-MART STORES . . . . . . . . . . . . . . . . . . . . .16.4% 15.9%

SOURCE: FORBES: America’s 400 Best Big Companies. FORBES, January 8, 2001


TOP FIVE U.S. GROCERY RETAILERS

1997 2000

Kroger Co. Kroger Co.
Safeway Wal-Mart
American Stores Albertson’s
Albertson’s Safeway
Ahold USA Ahold USA
CR5 = 24%* CR5 = 42%**

CR 5 refers to percent of market share held by the top five retailers.

SOURCE: * Pacific Crest Securities, January 8, 1999
** Supermarket News, January 24, 2000


1999 FOOD , DRINK & TOBACCO COMPANY LEADERS
BASED ON PERCENTAGE OF RETURN ON CAPITAL

5-YR. AVERAGE LATEST 12 MOS.

ANHEUSER BUSCH COS . . . . . . . . . . . . . . . . . .
15.0% 16.8%
BROWN-FOREMAN . . . . . . . . . . . . . . . . . . . . . ..
19.7% 19.5%
CAMPBELL SOUP . . . . . . . . . . . . . . . . . . . . . . .
34.2% 42.3%
COCA COLA . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.40.7% 17.7%
H.J. HEINZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.8% 19.5%
HORMEL FOODS . . . . . . . . . . . . . . . . . . . . . . . .
14.9% 17.3%
MCCORMICK & CO. . . . . . . . . . . . . . . . . . . . . . .
15.7% 23.4%
PEPSICO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.6% 20.1%
PHILIP MORRIS . . . . . . . . . . . . . . . . . . . . . . . . . .
24.7% 30.9%
PILGRIM’S PRIDE . . . . . . . . . . . . . . . . . . . . . . . .
12.5% 11.5%
SARA LEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.19.9% 31.9%
SMITHFIELD FOODS . . . . . . . . . . . . . . . . . . . . .
11.4% 7.7%
UST INC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89.9% 75.8%
WILLIAM WRIGLEY JR. . . . . . . . . . . . . . . . . . . .
28.3% 27.4%

SOURCE: FORBES: America’s 400 Best Big Companies. FORBES, January 8, 2001


TOP TEN PRIVATE COMPANIES
INVOLVED IN CORPORATE AGRIBUSINESS
[Rank, Rank among all U.S. private corporations in paranthesis,
1999 revenues, businesses]


1. (1) CARGILL $48 billion
International marketer & processor agricultural & industrial commodities
2. (2) KOCH INDUSTRIES $36 billion
Oil, chemical, minerals, energy, environmental technology, ranching
3. (4) MARS $15.3 billion
Makes candy, icre cream, meals & pet food, processes rice, electronics
4. (7) PUBLIX SUPER MARKETS $13 billion
631 supermarkets in Alabama, Florida, Georgia & South Carolina
5. (9) CONTIGROUP COMPANIES $10 billion
Process poultry, pork & beef, mills flour & feed
6. (11) MEIJER $9.5 billion
General merchandise & grocery stores in the Midwest
7. (15) HE BUTT GROCERY $8.2 billion
H-E-B & H-E-B Pantry Food stores, milk plant & bread bakery in Texas
8. (17) ARAMARK $7.1 billion
Food & support services, uniforms, child care & development services
9. (18) C & S WHOLESALE GROCERS $7.1 billion
Wholesale food to supermarkets, retail stores & military bases
10. (21) ALLIANT EXCHANGE $6.5 billion
Distributes food to restaurants, hotels, hospitals & other facilities

SOURCE: FORBES: 500 Biggest Private Cos., FORBES, November 27, 2000


1999 TEN LARGEST COOPERATIVES (AGRICULTURE & HARDWARE)


REVENUES

1. FARMLAND INDUSTRIES . . . . . . . . . . . . . . . . . . $ 10.7 BILLION
2. DAIRY FARMERS OF AMERICA . . . . . . . . . . . . .$ 7.6 BILLION
3. CENTEX HARVEST STATES . . . . . . . . . . . . . . . . $ 6.3 BILLION
4. LAND O’LAKES . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 5.6 BILLION
5. WAKEFERN FOOD . . . . . . . . . . . . . . . . . . . . . . . . $ 5.5 BILLION
6. TRUSERVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4.5 BILLION
7. TOPCO ASSOCIATES . . . . . . . . . . . . . . . . . . . . . . $ 3.6 BILLION
8. ASSOCIATED WHOLESALE GROCERS . . . . . . $ 3.3 BILLION
9. ACE HARDWARE . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.1BILLION
10. UNIFIED WESTERN GROCERS . . . . . . . . . . . . .$ 2.9 BILLION

SOURCE: National Cooperative Bank, Washington, D.C.

TEN WORST CORPORATIONS OF YEAR 2000

Each year the Multinational Monitor publishes its annual list of the Ten
Worst Corporations of the Year. Appearing on the Year 2000 list are:

Aventis: Making Human Guinea Pigs

The biotech company recklessly raced its genetically modified StarLink
corn to market. Not approved for human consumption, Starlink soon found its
way into the food supply (through Taco Bell shells and other food items),
through cross-pollination with conventional corn crops, improper mixing in
grain elevators or otherwise. Critics say StarLink corn poses serious
allergenic risks, including fever, rashes and diarrhea.

BAT: Smuggler of Death

Industry documents uncovered in connection with the U.S. state litigation
against the tobacco industry reveal that British American Tobacco for
decades promoted and facilitated a worldwide cigarette smuggling scheme,
with extensive efforts in Latin America and Asia. Cigarette smuggling
evades excise taxes -- lowering cigarette prices and increasing smoking
rates.

BP/Amoco: Lawbreaker

The oil giant which likes to portray itself as environmentally responsible
paid major fines and entered settlements in 2000 for illegal disposal of
hazardous waste, alleged Clean Air Act violations, and underpaying
royalties for oil produced on federal and Native American lands.

DoubleClick: Cookie Crook?

DoubleClick is rubbing up against the edge of internet privacy
protections, having acquired the ability to match consumer information
from web usage and purchases -- mostly gained without consumer knowledge or
informed consent -- with consumers' names and addresses.

Ford/Firestone: Reckless Homicide?

Ford and Firestone placed the lethal combination of Ford Explorers and
Firestone tires on the road, leaving the deadly mix on the road even
after they had overwhelming evidence of the consumer hazard.

Glaxo Wellcome: Patents Over People

With the HIV/AIDS crisis at least as severe as the Black Death which
wracked Europe in medieval times, Glaxo Wellcome and other drug
manufacturers persist in engaging in a variety of tactics to block African
and other poor countries from making available cheap generic versions of
lifesaving AIDS drugs.

Lockheed Martin: Testing Its Pollutant on Humans

The Los Angeles Times reported in November that on behalf of military
contractor Lockheed Martin, Loma Linda University is conducting the first
large-scale tests of a toxic drinking water contaminant -- a rocket fuel
component -- on human subjects.

Philipps Petroleum: Deadly Employer

A massive explosion at a Phillips Petroleum plastics plant in Pasadena,
Texas in March killed one person and injured 74. It was the third fatal
accident at the sprawling petrochemical complex in the last 11 years,
including a 1989 blast that killed 23 people and an explosion in June1999
that left two dead.

Smithfield Foods: Pig Out

To the detriment of family farmers, Smithfield Foods is rushing to
consolidate control of the meatpacking industry, most recently with a
proposed merger with IBP Inc. While wrecking havoc on the farm economy, the
big hog companies are also destroying farm country. The rapid growth of
factory farms and the resulting mountains of untreated livestock manure are
fouling drinking water supplies and causing a public health risk throughout
the United States.

Titan International: Union Buster

Approximately 1,000 United Steelworker of America (USWA) workers at two
Titan facilities have struck the maker of agricultural, off-road and
construction tires, wheels and assemblies since 1998. The viciously
anti-union Titan CEO Morry Taylor responded to a National Labor Relations
Board unfair labor practices complaint by reportedly telling the Natchez
Democrat that "I figure in five years they'll get that to the first
federal court. By that time they'll all be enjoying retirement pay."

(The full story, "The Ten Worst Corporation of the Year," is posted at
<http://www.essential.org/monitor/mm2000/00december/enemies.html>http://www.esse
ntial.org/monitor/mm2000/00december/enemies.html.)


CORPORATE AGRIBUSINESS INDEX

Acoording to USDA figures compiled by Daniel Wood, Christian Science Monitor:
*Nearly 20% of the world's food now comes from city-based farms, averaging
anywhere from one to 20 acres.
* The average distance between food in the field and the dining room where
it is eaten is 1,500 miles.
* Refrigerating, transporting, and storing this food causes an expenditure
of energy eight times greater than the value of the food itself.
* In terms of calories, it takes eight calories of energy to produce and
deliver one calorie of food 1,500 miles.
* Spinach and other green leafy vegetables can lose as much as 50% of their
nutrients in five days.

* * *

According to Business Week's annual survey:
* U.S. executive pay in 1999 continued to grow at an out-of-this-world
rate, the average CEO of a major corporation made $12.4 million in 1999, up
17% from the previous year or 475 times more than an average blue-collar
worker and six times the average CEO paycheck in 1990.
* American companies are paying CEOs better than anywhere else in the
world, not 10% or 20% more, but 1,000 percent more and then some.
* According to Towers Perrin's 1999 Worldwide Total Remuneration report,
German CEOs make 13 times what the average manufacturing employee makes and
in Japan, the CEO-to-worker pay ratio is just 11-to-1.

* * *

Preliminary data from Thomson Financial Securities Data reports that:
* Mergers and acquisitions worldwide surpassed $3.4 trillion in 2000 ekeing
out a 3.5% increase over 1999's total and producing, the eighth consecutive
record year for the continuing M&A expansion.
* With three (weekend) days to go before 2000 drew to a close, total volume
of M&A deals announced around the world reached $3.409 trillion, compared
with $3.293 trillion in 1999.
* In the U.S., announced mergers managed to rack up a total of $1.766
trillion, up 12.9% over 1999's total of $1.564 trillion. While the increase
reversed a 3% decline in U.S. merger volume the previous year, the total
number of announced U.S. deals fell to 10,658 from 11,042 --- the second
straight year in recent memory the number has dropped.

* * *

USDA figures show that:
* U.S. fruit production fell 10% in 1999, declining for the second
consecutive year.
* Between 1992 and 1997, the number of U.S. farms with land set aside for
orchards and vineyards declined by nearly 10,000, or 13.5%, to 106,069.
* The state with the largest loss was California, where nearly 2,300 farms
disappeared as the number of acres devoted to fruit production increased.

* * *

FARM PRICE SQUEEZE
Farmers get only a fraction of the price consumers pay for produce.

Price spread to farmers.
Item Price paid Retail price
(Los Angeles)
Carrots (1-pound bag) $0.16 $0.49 206%
Potatoes (10-pound bag) $0.64 $1.91 198%
Tomatoes (per pound) $0.57 $2.22 289%
Iceberg lettuce (each) $0.43 $0.99 130%

SOURCE: Western Growers Association. Week ending November 17, 2000

* * *

* USDA has overestimated the amount of farm land that was developed between
1992 and 1997 by 30% and blamed faulty software for the mistake. It
initially reported that nearly 16 million acres of farm land were converted
to development between 1992 and 1997 --- a rate of 3.2 million per year.
The correct figure is 11.2 million acres, a development rate of 2.2 million
acres
per year.
* Between 1982 and 1992, the annual conversion rate was 1.4 million
acres a year.
* The U.S. had 98 million acres of developed land in 1997, about 6.6% of
the nation's non-federal land.
* About 25% of the non-federal land is farmed. More than half is in
rangeland or forests.

* * *

Public Campaign’s Author Blank reports that:
* Expected price tag for Bush-Cheney inauguration: $30 million.
* Portion coming from private contributions: 100%.
* Cost of a table at any of three candlelight dinners on January 18 that
President-elect George W. Bush and Vice President-elect Dick Cheney are
expected to visit: $25,000.
* Maximum contribution that the Bush-Cheney Presidential Inaugural
Committee is accepting from private donors: $100,000.
* Number of donors who gave a total of $100,000 or more to parties and
candidates in the 2000 elections awarded positions on George W. Bush's
Transition Advisory Teams: 14.
* Amount that Bush's Energy Department Secretary nominee, Sen. Spencer
Abraham (Rep.-Michigan), received from energy industry donors in his failed
2000 Senate race: $366,298.
* Rank of Abraham among all current senators in contributions accepted from
energy industry donors in the 2000 elections: 1.
* The number of industries that Bush's nominee for Attorney General, Sen.
John Ashcroft (Rep.-Missouri), ranks in the Senate top ten for
contributions in the 2000 elections: 42, many of which have anti-trust and
other matters pending before the Justice Department.


RECOMMENDED WEB SITE:
CORPORATE AGRIBUSINESS RESEARCH PROJECT

Readers of THE AGRIBUSINESS EXAMINER are reminded that past issues of the
newsletter can be found at the Corporate Agribusiness Research Project’s
web site on the Internet. The CARP web site features: THE AGBIZ TILLER,
THE AGRIBUSINESS EXAMINER and "Between the Furrows."

THE AGBIZ TILLER, the progeny of the one-time printed newsletter, now
becomes an on-line news feature of the Project. In-depth essays dealing with
corporate agribusiness activities are posted here periodically.

In "Between the Furrows," besides a modern search engine, there is a wide
range of pages designed to inform and educate readers on the inner workings
of
corporate agribusiness. In addition to CARP's "Mission Statement," "Overview"
and the Project director's "Publication Background," the viewer will find a
helpful "Fact Miners" page which is an effort to assist the reader in the
necessary art of researching corporations; a page of "Quotable Quotes"
pertaining to agribusiness and corporate power; a "Links" page which allow
the reader to survey various useful public interest, government and
corporate web sites; a "Feedback" page for reader input, and a page where
readers can order directly the editor's The Corporate Reapers: The Book
of Agribusiness.

The CARP web site was designed and produced by ElectricArrow of Seattle,
Washington.
http://www.electricarrow.com

Simply by clicking on either of the addresses below all the aforementioned
features and information are yours to enjoy, study, absorb and sow.

http://www.ea1.com/CARP
http://www.ea1.com/tiller/