Special organizational features in the food industry
The food industry has a number of special features that play a larger role than in many other industries. This chapter will review a number of these features, including cooperatives, marketing orders, vertically integrated coordinated companies, and franchises. We will also examine the role government plays in the food industry, which involves not just price supports and crop insurance for farmers, but antitrust exemptions for producers and processors, food safety regulations, food labeling rules, governmental food purchase programs such as WIC and SNAP, laws covering advertising claims, and international trade laws that impact both imports and exports of raw agricultural commodities and processed food products. To properly manage a business in any area of the food industry, you must understand how these various special features and government rules interact with your business and the businesses that you buy from and sell to; without knowledge of the government’s role in the food industry, you could miss opportunities or run afoul of the law and end up paying a ﬁ ne or going to jail.