Globalization
of the world's food economy continues to change the shape of agriculture.
The integration of capital, technotogy, and information into a single global
market is redefining the significance of national boundaries and restyling
consumer preferences. Despite a strong economy in the United States this
past year, an economic crises gripped the Asia Pacific region and growth
rates slowed dramatically across the emerging economies of Asia, Eastern
Europe, and Latin America. The demand for protein and vegetable oils throughout
these regions fell precipitously while abundant crops were being harvested
from the earth's arable lands. The value of farm commodities declined to
the Lowest levels in more than a decade and failed to return the costs of
production for most of the world's farmers. Narrowing profit margins brought
continued consolidation in agriculture as the entire food chain became increasingly
competitive. The realities of our markets constrained our ability to maximize
earnings. |
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