New Report Finds USDA Food Purchasing Still Favors Industrial Agriculture, Concentrates Power Among a Few Corporations

Analysis shows billions in federal food contracts flow to a handful of large companies, sidelining independent and sustainable producers

Washington, D.C. – Friends of the Earth, today released a new report, Feeding Concentration: How USDA’s Commodity Food Purchasing Favors Industrial Agriculture, which analyzes the U.S. Department of Agriculture’s (USDA) $4.8 billion in food procurement for Fiscal Year 2024. The report finds that nearly half of all USDA food spending went to just 25 companies, with poultry giant Tyson Foods receiving the largest share despite a history of workplace safety, labor, environmental, and food safety concerns.  

The findings emphasize that USDA’s purchasing practices continue to concentrate power among a small number of multinational corporations, limiting opportunities for independent producers and undermining goals of fair competition, sustainability, and public health. Key findings include: 

• In FY 2024, USDA’s Agricultural Marketing Service (AMS) spent $4.77 billion on direct food purchases, with nearly half (46%) directed toward animal products. 
• USDA’s top 25 vendors received 45% of all USDA food spending. 
• Tyson Foods was the top supplier, receiving $238 million (5% of total spending and 43% of all poultry contracts). 
• Market concentration was evident across nearly every category: in 10 of 13 food categories, just five companies controlled the majority of spending — including 83% of pork, 76% of cheese, and 72% of poultry contracts. 

“This report builds on our 2023 analysis of federal food procurement and shows that little has changed,” said Chloë Waterman, a senior program manager at Friends of the Earth and the lead author of the report. “USDA’s food purchasing decisions directly shape what ends up on the plates of millions of children, families, and seniors. By directing so much spending to just a few large corporations, USDA is missing opportunities to support healthier food and a more diverse, resilient agricultural system.” 

“USDA spends billions each year in an agricultural system that picks winners and losers,” said Greg Gunthrop, an independent producer of pasture-based pork in Indiana. “Their choice to support the largest players with their agricultural commodity purchases for schools, institutions, and the military is but one more example of USDA choosing a system that is not kind to farmers, farm workers, rural communities, the environment, or animals.”  

The report offers recommendations to build a more fair, sustainable, and resilient food system. It calls on USDA to: 

• Diversify vendors by creating opportunities for small, mid-sized, and independent producers. 
• Prioritize health and sustainability goals, including organic and pasture-raised products raised without hormones or antibiotics. 
• Hold corporations accountable by disqualifying vendors with repeated labor, workplace safety, or environmental violations. 
• Improve transparency with detailed annual reporting on suppliers, production practices, and procurement outcomes. 

“The decisions made at the federal level shape what ends up on our students’ trays—and ultimately, the health and well-being of our communities,” said Ryan Cengel, MS, MA, RD, LD, SNS, Food Service Director for Manor ISD in Texas. “Right now, too much of the USDA Foods program is concentrated in the hands of a few large corporations, limiting districts like mine from serving meals that truly reflect our values. If USDA placed values-based procurement at the center—expanding access to plant-based proteins, organic produce, and responsibly sourced foods—we could nourish students with meals that power their learning while strengthening local farmers and producers. That shift would not just feed kids; it would help build a stronger, more resilient food system for the next generation.”   

The report also underscores the need for Congressional action. Many of these recommendations would be advanced through passage of the pending Preventing Child Labor Exploitation in Federal Contracting Act and the EFFECTIVE Food Procurement Act. 

About the Report 
Feeding Concentration: How USDA’s Commodity Food Purchasing Favors Industrial Agriculture shows that USDA’s lowest-cost contracting model continues to favor large-scale industrial producers while shutting out smaller, sustainable, and independent operations. 

Drawing on purchasing data from USDA’s Agricultural Marketing Service (AMS), which accounts for nearly half of all federal food procurement, the analysis examines how $4.8 billion was spent in Fiscal Year 2024. AMS buys domestically produced food for child nutrition programs, food banks, Indian reservations, foreign aid, and low-income seniors. By comparing AMS spending by food type, contract value, and vendor concentration over multiple years, the report reveals how taxpayer dollars consistently flow to a handful of multinational corporations — limiting competition and reducing opportunities for more diverse and resilient food producers. 

Download the full report here.

Expert contact: Chloe Waterman, 812-345-4585, [email protected]   
Communications contact:  Jessica Christopher (Curator PR on behalf of Friends of the Earth), 610-945-8615 (PT), [email protected]