NEW YORK (TheStreet) -- The food industry -- fast, slow, greasy or otherwise -- is one of the largest in the world, and one nobody talks about. Much like the housing market with its trickle-down effect, the food industry has many facets that usually aren't considered by everyday consumers.
Admittedly, it's easy to do. When you bite into a sandwich or cook a nice dinner, you rarely stop and think,
I wonder what chain of events led to this food being in my kitchen?
Let's forget for a moment that food is a necessity, unlike many other things such as cars, computers or furniture. While we could get by with rice and potatoes, our country
In a recent
Kraft Foods Group
, 57% of Americans would "go to some length" to keep cheese in their diets.
"Go to some length" included 36% of respondents giving up their cell phones for a week, 23% turning off the TV for a month and 39% giving up coffee for a year.
Just because it's a necessity, doesn't mean we Americans don't embellish it. That latte from
or donut from
Krispy Kreme Doughnuts
is half the reason some of us get up in the morning.
I used to think housing had the biggest trickle-down effect, where perhaps 100 people were needed for a certain product to reach just one person.
Housing is easy to understand: Someone digs up the land, pours in the foundation, frames the house, tons of different tradesmen do their individual job to finish the project, then voila! The house gets sold by a realtor (another job) to a family.
Food is similar and just as vital to our economy. Think about it.
You sit down at a
location, such as Red Lobster or Olive Garden. You order a steak with corn on the cob, mashed potatoes and for seasonality purposes, an Octoberfest from
Pretty standard meal -- but where did it all come from?
Let's start with the side dishes. For all intents and purposes, we can assume two different farmers were required to plant the corn and the potatoes.
A company such as
, which makes hybrid corn seed, could be used for the planting process and chemicals to protect crops made by
(which also produces hybrid seed), may have been applied as well.
The farmer and his employees use
equipment to harvest their crop and get them ready for shipping.
As the product is shipped -- which requires more jobs -- and spread across the nation to many different buyers, it ultimately ends up on your plate at the restaurant.
This is just for the corn. Steak is similar.
A cattle farmer slaughtered, or sold for slaughtering, his cow, which went to a processing plant and ultimately ended up packaged in a freezer truck on its way to the local eatery.
Who made that Octoberfest beer? What about the plate and silverware? Don't forget about the waitress that brought your food from the cook in the kitchen, or the Food and Drug Administration employee who tested the meat.
See what I mean? The trickle-down effect is incredible and can be applied to just about everything we eat.
, 11 of the
are food-based. This does not include companies such as
, although the three of these do sell food.
Those 11 companies accounted for 4.33 million of the 11.52 million jobs from the top-50 largest employers. In other words, while only 22% of the list was comprised of food companies, they still accounted for over 37% of the total jobs.
full-service restaurants, limited-service eating places and grocery stores made up three of the top six industries with the largest employment (ranked second, fourth and sixth, respectively).
The money that's in the food industry is enormous. It's
that in 2012, U.S. consumers alone spent nearly $1.8 trillion dollars on food.
I was surprised to learn that only $860.4 billion was
on tech products in 2012, less than half of that on food.
That includes companies such as
, which are considered titans in the U.S.
So whether it's the farmer, his equipment or fertilizer; the men and women who ship, distribute and sell the products across the country; the employees in food processing, marketing or technology; the morning shelf stocker, cashier or waitress, one thing is for certain: Food is the real king in the U.S.
Should we opt for potatoes, rice and ramen noodles, then our economy could take a real slug to the gut -- both, figuratively and literally.
At the time of publication, the author was long SBUX and AAPL.
-- Written by Bret Kenwell in Petoskey, Mich.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.