Optimizing Food Delivery

This Econtalk podcast with Frito-Lay executive Brendan O’Donohoe from 2011 gives a great account of how optimized the production and marketing system for potato chips and other salty snacks has become. The industry has a lot of very smart people trying to figure out how to ensure that you maximize food consumption from how to peel potatoes to how to stack store shelves with bags of chips. This increased efficiency is our hypothesis (e.g. see here) for the obesity epidemic. However, unlike before where I attributed the increase in food production to changes in agricultural policy, I now believe it is mostly due to the vastly increased efficiency of food production. This podcast shows the extent of the optimization after the produce leaves the farm but the efficiency improvements on the farm are just as dramatic. For example, farmers now use GPS to optimally line up their crops.