by Marion Nestle

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Apr 11 2014

The secret life of food stamps: good for business

The writer Krissy Clark, in a collaboration between Marketplace and SLATE, has produced a remarkable series of articles (with audio and video) on business interests in SNAP, the Supplemental Nutrition Assistance Program formerly known as food stamps.

Here are brief excerpts:

The secret life of a food stamp, April 1

At a private dinner Walmart held for market analysts last fall in Bentonville, Ark., a company vice president estimated Walmart takes in 18 percent of all food stamp spending in the U.S….Meaning, Walmart took in more than $13 billion in revenue, or about 4 percent of Walmart’s total sales in the U.S.

So Walmart is likely the biggest single corporate beneficiary of SNAP, but it’s not just Walmart. A growing number of stores have baked food stamp funding into their business models since the Great Recession. The tally of stores authorized to accept food stamps has more than doubled since the year 2000, from big-box stores like Target and Costco to 7-Elevens and dollar stores. It’s a paradox that the more people are struggling to get by, the more valuable food stamps become for business.

Save money, live better, April 2

Although there are no federal numbers on where employed SNAP participants work, the state of Ohio…does keep a list of the top 50 companies with the most workers and their family members on food stamps. Ohio’s list includes lots of fast food chains and discount and big-box stores: McDonald’s, Target, Kroger supermarket, Dollar General. At the very top is Walmart, which had an average of more than 14,500 workers and family members on food stamps last year. If you take into account the average size of a family on food stamps, as many as 7,000 individual Walmart employees were on food stamps last year—nearly 15 percent of the company’s workforce across Ohio.

That means the same company that brings in the most food stamp dollars in revenue—an estimated $13 billion last year—also likely has the most employees using food stamps.

 Hungry for savings, April 3  

Like many anti-hunger advocates who receive donations from corporate retailers known for low wages, Elchert is in a tricky spot when it comes to addressing the paradoxes of the food stamp economy. His group gets financial support from Walmart and other food retailers. “When we’re talking a lot with corporations,” he says, “it’s one of those situations where, well, let’s talk about this in some way where we’re not offending them.”

I’ve talked about this issue in previous posts.  Here are some additional resources on the issue:

 

Aug 8 2012

Question for today: how should we support mid-size dairy farms?

My “thought for a summer weekend” post elicited interesting comments.

Let’s start with the one from FarmerJane, a mid-size dairy farmer who is a frequent contributor.

She asks: How can farmers and consumers find ways to dialog and share information?

She says (and I’m doing some heavy editing here, with her permission):

Thoughts about ag are dominated by a few powerful big media writers.  When we farmers try to speak, we find ourselves excoriated….Rural America does not seem to have any sort of spokesperson who has access to national media.  The issues are framed by a handful of urban food-elite writing whose thoughts then trickle down to how rural farmers are perceived…I think the inclusion of farmers in food dialog would bring a multidisciplinary approach to the issue of food:  environment, ag economics, animal welfare, food systems to name a few. But what are the ways this could happen?

I feel that we, the average farmer of the middle are being marginalized.

I asked: What would you like to see done for farmers like you, neither CAFO, nor small.  She had several suggestions, which I summarize here mostly in my words (hers are in quotes):

Fix milk marketing orders and “end-product” pricing.  Right now, prices are paid to farmers according to the use of the milk.  From high prices to low: Class I (fluid milk), Class II (yogurt), Class III (cheese), Class IV(butter/powder).  If the push is to turn milk into yogurt, cheese, or butter, dairy farmers don’t get paid as much.

Encourage local production.  “The eastern half of the country is actually in “milk deficit” of about 3.2 billion pounds per month, while the western half is pushing the milk out like there is no tomorrow…Farmers in the western part of the country are calling for supply management to rein in some of this rapid growth, while we here in the east are generally opposed to it.”

Make pricing more transparent.  “Farmers don’t know instantly what dairy prices are (hopefully this will change as farmers have pushed hard on this issue to come out of the Stone Age).”

Cap supports on CAFOs.  “Some of the major NY CAFO’s got millions in terms of ‘corn subsidies’ in addition to dairy payments.”

Support mid-size dairy herds: The trigger point at which a farm becomes a CAFO in NY is only 200 cows.  Extension estimates that meeting CAFO requirements at this limit keeps farmers at 199 cows because the compliance cost is something like $162,000.

Reregionalize dairy processing: “meaning more processors in NY who can compete for the farmers’ milk….The more competition for milk the better, especially from a number of smaller processors that farmers and smaller coops can negotiate with.”

Deal with anti-competitive forces. Large dairies are engaged in market collusion and this hurts smaller dairies.  “ Massive retail level buyer consolidation is another issue… Walmart has the power to drive down farmer prices in all dairy categories… The more we can do to break the Walmart grip, the better off we all will be.”

Look at the trends.  “ I know that NY has gone from 30,000,000 acres of farmland when we were kids, to just 7,000,000 today.  There are some 3,000,000 acres of abandoned grazing farmlands Upstate, with empty barns as far as one can see in some areas.  And, I see an increasing number of huge CAFO’s with all-immigrant work forces who send every penny home, cows that never go outdoors, and emptied out Main Streets up here….I wonder how it could possibly make sense not to encourage farms of all kinds, especially making use of the grasslands that are close to NYC.”

Her overall question: “How does one move these questions into the public realm for intelligent discussion?

Senator Gillibrand has made it her business to understand dairy policies as they affect New York State.  For anyone who has ever tried to understand milk marketing orders, that’s an achievement (see below).

Responses?  Any good ideas for FarmerJane?

Jun 13 2012

Who benefits most from food stamps? Follow the money!

While Congress is fussing over the farm bill, Michele Simon’s new report, Food Stamps: Follow the Money, identifies the businesses that most stand to gain from the $72 billion spent last year on SNAP.  This program, formerly known as food stamps, gave 46 million Americans an average of  $134 per month to spend on food in late 2011.

Just as health and anti-obesity advocates are working to bring agricultural policy in line with health policy by getting the farm bill to promote production of healthier foods, they also are looking at ways to encourage SNAP recipients to make healthier food choices.  At present, SNAP recipients have few restrictions on what they can buy with their benefit cards.

In contrast, participants in the Women, Infants, and Children program (WIC), which is not a farm bill program, can only use their benefits to buy foods of high nutritional value.  The idea of requiring SNAP recipients to do the same has split the advocacy community.

Anti-hunger advocates fear that any move to restrict benefits to healthier foods, or even to evaluate the current food choices of SNAP recipients, will make the program vulnerable to attacks and budget cuts.  They strongly oppose such suggestions.

Follow the Money explains some of the politics behind efforts to maintain the status quo:

  • Food industry groups such as the American Beverage Association and the Snack Food Association teamed up with anti-hunger groups to oppose health-oriented improvements to SNAP.
  • Companies such as Cargill, PepsiCo, and Kroger lobbied Congress on SNAP, while also donating money to America’s top anti- hunger organizations.
  • At least 9 states have proposed bills  to make health-oriented improvements to SNAP, but  none have passed, in part  due to opposition from the food industry.
  • Coca-Cola, the Corn Refiners of America, and Kraft Foods  all lobbied against a Florida bill that aimed  to disallow SNAP purchases for soda and junk food.
  • Nine Walmart Supercenters in Massachusetts received more than $33 million in SNAP dollars in one year.
  • Walmart received about half of the billion dollars in SNAP expenditures in Oklahoma over a 2-year period.
  • J.P. Morgan Chase holds contracts in 24 states to administer SNAP benefits.
  • Banks and other private contractors are reaping significant windfalls from the economic downturn and increasing SNAP participation.

The point here is that banks that administer SNAP have a vested interest in keeping SNAP enrollments high and makers of junk foods have a vested interest in making sure that there are no restrictions on use of benefits.

Another point: data on use of SNAP benefits exist but are either proprietary or not made available.

The report concludes with these recommendations:

  • Congress should maintain SNAP funding in this time of need for millions of Americans;
  • Congress should require collection and disclosure of SNAP product purchase data, retailer redemptions, and national data on bank fees;
  • USDA should evaluate state EBT contracts to determine if banks are taking undue advantage of taxpayer funds.

I’ve not seen this kind of analysis before and this report deserves attention.  At the very least I hope that it will encourage Congress to make sure that the poor get their fair share of SNAP benefits.

Apr 1 2012

The dilemma of pink slime: cost or culture?

I devoted this month’s (first Sunday) Food Matters column in the San Francisco Chronicle to the current hot-button issue, pink slime.

Q: I keep hearing about pink slime being fed to school kids. How could anyone even think about putting something so disgusting in school lunches?

A: Pink slime is the pejorative term for “lean finely textured beef,” a product designed to recover useful bits from carcass trimmings. These are warmed, centrifuged to remove the fat, treated with ammonium hydroxide gas to kill pathogens and compressed into blocks that are frozen for later use.

The final product is pink; therefore, it’s meat – or so says the meat industry. And from a strictly nutritional standpoint, it is. But from any other standpoint, LFTB creates a dilemma.

For one thing, it solves an enormous problem for meat producers. Only about half the weight of the 34 million cattle slaughtered each year is considered fit for human consumption. The rest has to be burned, buried in landfills or sold cheaply for fertilizer or pet food.

LFTB recovers 10 to 12 pounds of edible lean beef from every animal and is said to save another 1.5 million animals from slaughter.

This is the same argument Mal Nesheim and I used in our book, “Feed Your Pet Right.” If American pets were not fed byproducts of human food production, they would need the equivalent of food for 42 million people.

Our readers did not buy this argument. They do not want their pets eating byproducts. They believe their pets deserve food of higher quality. Don’t kids?

A dilemma

Here’s the dilemma. LFTB solves a serious food safety problem. The meat trimmings that go into cheap hamburger are said to often be heavily contaminated with bacteria, some of them dangerous. The ammonia processing makes LFTB safe.

Since LFTB’s introduction, safety officials say they rarely find toxic E. coli in school hamburger.

LFTB’s leading manufacturer, Beef Products Inc., has just announced suspension of LFTB production at three of its four plants. This alarms some food safety advocates. They worry that if public pressure causes LFTB to be eliminated, bacteria-laden beef trimmings will go back into hamburger, just as they used to, and the meat will be much less safe.

Under public pressure, some fast food chains, grocery retailers and school districts say they will no longer mix LFTB with hamburger. Walmart will offer customers a choice, and so will the U.S. Department of Agriculture.

Members of Congress have written the USDA, asking, “If fast food chains won’t serve pink slime, why should school cafeterias?”

Calling LFTB “pink slime” presents a massive public relations problem. Human culture determines what is socially acceptable to eat. Most of us don’t eat the parts of animals our culture considers inedible.

LFTB is not really slimy and it is reasonably safe and nutritious. But it violates cultural norms.

Chef Jamie Oliver proved this with schoolchildren. In one episode of his “Food Revolution,” he made the chicken version of pink slime (white slime?) from bird parts the kids found disgusting. When he formed the slurry into patties, the kids ate them anyway. They forgot about the patties’ origins.

But we are acculturated adults. Once we know how chicken nuggets are made, we might want to think twice before eating them. Now we know hamburger is mixed with LFTB. Do we still want to eat it?

Letter to USDA

School food advocate Bettina Siegel collected 230,000 signatures on a letter to the USDA to ban LFTB. She wrote, “It is simply wrong to feed our children connective tissues and beef scraps that were, in the past, destined for use in pet food and rendering, and were not considered fit for human consumption.” The USDA buys loads of LFTB for school hamburger because it is cheap. Districts that choose higher-quality meat will have to pay more for meat. Can they afford to?

Of course they can, says my go-to guru for all matters concerning school meals, Kate Adamick. Her new book “Lunch Money: Serving Healthy School Food in a Sick Economy” (cookforamerica.com/lunch-money) shows how schools can buy new equipment and better-quality food by creating strong breakfast programs and cooking meals from scratch.

This means that the acceptability of LFTB in supermarket hamburger or school meals boils down to a cultural choice. Even if LFTB is safe, nutritious and tastes like hamburger, it may not be culturally acceptable.

Do we want LFTB in our food? Or do we and our children deserve better? Serving healthy and delicious food is a way to show respect for our culture, food, children and schools, and to invest in the future of our nation.

Perhaps the best solution to the pink slime dilemma is simply to label LFTB as an ingredient. This would give individuals and schools the opportunity to decide for themselves whether culture or cost is the more important value in food choice.

An even better idea: Let’s produce safe meat in the first place.

Mar 19 2012

New books on ways of eating, American and not

Jonathan Deutsch and Natalya Murakhver, editors, They Eat That?  A Cultural Encyclopedia of Weird and Exotic Food from around the World, ABC-CLIO, 2012.

The editors, both graduates of my NYU department, got their students, colleagues, and friends to write short essays about nearly 100 foods considered weird, at least by someone.  The list includes foods that are anything but weird in other cultures—seitan, durian, nettles, haggis, huitlaloche, vegemite, but also those hardly ever available to even the most serious eaters.  On that list I would put camel, cavy, iguana, and walrus flipper.  As for what I would eat, stinky cheese, yes.  Urine, no way.  The entries put the foods in cultural context and provide references.  Most come with recipes.  This book is fun.

Tracie McMillan, The American Way of Eating: Undercover at Walmart, Applebee’s, Farm Fields and the Dinner Table, Scribner 2012.

McMillan followed the footsteps of Barbara Ehrenreich (Nickel and Dimed) and went to work at low wage jobs.  She has plenty to say about how hard it is to do them and how little they pay; she provides balance sheets to prove it.  Like Ehrenreich, she’s a good writer and her stories are compelling.  Eating well in America, she says, is difficult—bordering on impossible—for people who don’t have much money.

Feb 28 2012

Occupy Your Food Supply

Yesterday was Occupy Your Food Supply Day, the latest food-related manifestation of the Occupy movement.  The day was organized by the Rainforest Action Network, which considers it a resounding success.

 The day included more than 100 events across the globe, united an unprecedented alliance of more than 60 Occupy groups and 30 environmental, food and corporate accountability organizations, and featured prominent voices including Indian environmentalist Vandana Shiva, music legend Willie Nelson, actor Woody Harrelson, authors Raj Patel, Anna Lappe, Gary Paul Nabhan, author Michael Ableman and Marion Nestle, among others.

It was a teaching day for me and I wasn’t able to do much except lend some moral support:

Marion Nestle, professor and author of What to Eat and Food Politics: How the Food Industry Influences Nutrition and Health: “While the food industry digs in to fight public health regulations, the food movement will continue to attract support from those willing to promote a healthier and more sustainable food system. Watch for more young people going into farming and more farmers’ markets, farm-to-school programs, school meal initiatives, and grassroots community efforts to implement food programs and legislate local reforms. There is plenty of hope for the future in local efforts to improve school meals, reduce childhood obesity, and make healthier food more available and affordable for all.”

The day was designed to highlight some of the least democratic aspects of our current food system:

Never have so few corporations been responsible for more of our food chain. Of the 40,000 food items in a typical US grocery store, more than half are now brought to us by just 10 corporations. Today, three companies process more than 70 percent of all U.S. beef, Tyson, Cargill and JBS. More than ninety percent of soybean seeds and 80 percent of corn seeds used in the United States are sold by just one company: Monsanto. Four companies are responsible for up to 90 percent of the global trade in grain. And one in four food dollars is spent at Walmart.

The overwhelming support for Occupy our Food Supply underscores the unity between farmers, parents, health care professionals, human rights activists, food justice advocates and food lovers around the world who are increasingly viewing their concerns as different manifestations of the same underlying problem: a food system structured for short term profit instead of the long term health of people and the planet.

What to do about all this?  Get to work on the farm bill, for starters.

Jan 3 2012

Musing about organics leads me to the Farm Bill

Sales of organic foods continue to increase at a faster pace than sales of conventional foods.  This alone makes people suspicious of the organic enterprise.

Another reason is confusion about what organic production methods are, exactly.  If you are part of the food movement, you probably want your foods to be organic, local, seasonal, and sustainable.  You might also want them produced by farm workers who have decent wages and living conditions.

Unfortunately, these things do not necessarily go together.

  • Organic means crops grown without artificial pesticides, fertilizers, GMOs, irradiation, or sewage sludge, and animals raised without hormones or antibiotics.  Certified Organic methods follow specific rules established by USDA.
  • Local means foods grown or raised within a given radius that can range from a few to hundreds of miles (you have to ask).
  • Seasonal refers to food plants eaten when they are ripe (and not preserved or transported from where they were grown).
  • Sustainable means—at least by some definitions—that the nutrients removed from the soil by growing plants are replenished without artificial inputs.

That these are different is illustrated by a recent article in the New York Times about industrial organic production in Mexico.  The story makes it clear that organics do not have to be local, seasonal, sustainable, or produced by well paid workers.

While the original organic ideal was to eat only local, seasonal produce, shoppers who buy their organics at supermarkets, from Whole Foods to Walmart, expect to find tomatoes in December and are very sensitive to price. Both factors stoke the demand for imports.

Few areas in the United States can farm organic produce in the winter without resorting to energy-guzzling hothouses. In addition, American labor costs are high. Day laborers who come to pick tomatoes in this part of Baja make about $10 a day, nearly twice the local minimum wage. Tomato pickers in Florida may earn $80 a day in high season.

The cost issues are critical.  Dairy farms in general, and organic dairy farms in particular, are entirely dependent on the cost of feed for their animals, and the cost of organic feed has become almost prohibitively expensive.  This has caused organic dairy producers to cut back on production or go out of business.  As another New York Times article explains,

The main reason for the shortage is that the cost of organic grain and hay to feed cows has gone up sharply while the price that farmers receive for their milk has not.

While the shortage may be frustrating for consumers, it reveals a bitter truth for organic dairy farmers, who say they simply need to be paid more for their milk.

Why is the price of feed rising?  Simple answer: because 40% of feed corn grown in the United States is being used to produce biofuels.

Why do farmers grow corn for biofuels?  Because the government gives them tax credits and other subsidies to do so.

But in a small step in the right direction, the ethanol tax credit program was allowed to expire last week,”ending an era in which the federal government provided more than $20 billion in subsidies for use of the product.”

One person quoted in the article connected the dots:

Production of ethanol, with its use of pesticides and fertilizer and heavy industrial machinery, causes soil erosion and air and water pollution. And it means that less land is available for growing food, so food prices go up.

Organics do not exist in isolation.  Their production is connected to every other aspect of the food system.

Wouldn’t it be nice to have a food system that promoted organic, local, seasonal, sustainable agriculture and paid farm workers a living wage?

Wouldn’t it be nice if the 2012 Farm Bill supported that kind of a food system if not instead of than at least along side of the one we have now?

I will be watching to see what Congress does with the Farm Bill.  Stay tuned.

Dec 27 2011

What’s with the problems with powdered infant formula?

Mead Johnson Nutrition says it has tested additional samples of its Enfamil baby formula and still does not find the bacteria responsible for the death of one newborn infant and the illness of another.

The bacteria at fault are Cronobacter sakazakii, formerly known as Enterobacter sakazakii (bacterial taxonomists proposed this reclassification in 2007).

Last week several retailers pulled Enfamil infant formula from their shelves because of fears that Enfamil was contaminated with this organism.

Walmart was the first to issue a recall.

The retailers actions were unusually cautious.  Neither Mead Johnson nor federal investigators had evidence that the formula caused the illnesses.  Federal agencies had not asked for a recall.

But the retailers must have connected the dots:

  • The most likely source of C. sakazakii is powdered infant formula.
  • The two infants ill with C. sakazakii were fed Enfamil powdered formula (although the second ill infant drank several kinds of formulas).

In the chapter on infant feeding in my book, What to Eat, I noted that the main difference between one kind of infant formula and another is its cost.  Powdered formula is much cheaper than the already reconstituted kinds.  I asked:

Beyond the difference in cost, does it matter which level of convenience you choose?

It might.   Powdered formulas are not sterile.  In this, they differ from concentrate and ready-to-serve formulas, which have been heated to sterilize them.

In 2002, the FDA warned pediatricians that powdered milk formulas could be contaminated with Enterobacter sakazakii, a type of bacteria that causes rare but terrible and sometimes fatal infections in infants, especially those who are premature, weak, or in hospitals.

The FDA says it is not aware of any E. sakazakii infections in healthy full-term infants in home settings.

Reports from other countries, however, suggest that even healthy babies may sometimes acquire such infections [see Kwan Kew Lai, “Enterobacter sakazakii infections among neonates, infants, children, and adults: case reports and a review of the literatur,”(see:  Medicine, Vol. 80, pp. 113-122, March 2001.]

In 2001, the CDC published a case report on this type of infection.  It pointed out that “…in 50-80 % of cases, powdered infant formula is both the vehicle and the source (direct or indirect) of E. sakazakii-induced illness.”

The CDC’s conclusion:

Clinicians should be aware of the potential risk for infection from use of nonsterile enteral formula in the neonatal health-care setting.

The World Health Organization has a Q and A:

3. How does infant formula get contaminated with Enterobacter sakazakii? Can other foods also be contaminated?

Basically there are three routes by which Enterobacter sakazakii can enter infant formula:

a) through the raw material used for producing the formula;

b) through contamination of the formula or other dry ingredients after pasteurization; and

c) through contamination of the formula as it is being reconstituted by the caregiver just prior to

feeding.

Enterobacter sakazakii has been detected in other types of food, but only powdered infant formula has been linked to outbreaks of disease.

So the recalls were precautionary.  It’s hard to argue with that—unless you are a stockholder; Mead Johnson stocks declined by 5% as a result.

At the moment, the source of these particular C. sakazakii infections is unknown.  Let’s give the retailers credit for taking precautions to protect the public.

As for infant feeding in general: Breastfeeding is best, of course.  If you are using formulas to feed your infant, the liquid ones are safer—but much more expensive.