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loped countries. Milk consumption rose three-fold.By the 1980s, advances in conventional plant breeding had tailed off, but GM made it possible to do things with DNA that conventional breeding could not do. Despite scaremongering in Europe, GM technology is spreading elsewhere: most of the world's soya is now GM.Producing lots of food is not much good unless you can distribute it, so advances in distribution technology have been as important as those in production technology. Salt, used to preserve food, which meant that it could be stored and traded, was an early aid to distribution. Canning arrived in the early 19th century, when a Frenchman discovered that food could be stored longer if it was heated before it was bottled, and a Briton worked out that tin cans were easier to transport than bottles; and both the British and the French armies used the technology to feed their troops in the Napoleonic wars.Francis Bacon, a British scientist and essayist, was an early victim of the struggle to develop refrigeration technology: he died in 1626 after eating some chicken that he had stuffed with snow as part of an experiment. In 1877 the first shipload of frozen beef was carried from Argentina to France. The impact on the food industry of the spread of the domestic refrigerator in the 20th century was rivalled only by that of the car, which changed the face of retailing by allowing supermarkets to develop. Supermarkets have helped push down prices principally because of their scale. Big businesses can invest in IT systems that make them efficient. And their size allows them to buy in bulk. The more concentrated the retail business becomes, the bigger supermarkets get, the further prices get pushed down until, of course, there is so much concentration that there is not enough competition. Britain's Competition Commission indicated earlier this year that the supermarket industry was moving towards that point: it refused to let any of the top three supermarket chains buy one of the smaller players. In America, however, where the size of the country means a more fragmented retail business, there is still scope for further concentration: the “black death”, as Wal-Mart is known in the trade, is expected to claim more victims. Wal-Mart's scale, the efficiency of its IT systems and the cheapness of its non-unionised labour force ($8-10 an hour compared with $17-18 for mid-sized players such as Albertsons, A hold, Safeway and Kroger), give it a massive advantage. It sells Colgate toothpaste for an average of 63% of its competitors' price, Tropicana orange juice for 58% and Kellogg's Corn Flakes for 56%. Analysts expect at least one of the mid-sized firms to disappear.The concentration of power among retailers has led to another stage in the shift in power down the food chain. Once upon a time, power lay with landlords. In the 20th century, as processing and distribution became more important, so did the food producers. Lord Haskins, Tony Blair's adviser on farming, recalls going to food industry conferences in the 1970s, when there would be a line of Rolls-Royces outside, all belonging to producers.
Retailer concentration has shifted power (and profits) further down the food chainNo longer. Retailer concentration has shifted power (and profits) further down the food chain. But the retailers are not the type to swank around in flash cars. They are ostentatiously parsimonious, advertising their determination to keep prices down. Wal-Mart's headquarters in Bentonville, Arkansas, is in a converted w
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