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CARROTS FOR CAMPBELL'S

OUR OHIO: EXPLORING OUR ECONOMY PAGE �

Lesson objectiveStudents will be able to describe the influence of production costs on plant location, explain how incentives influence decisions about how and what to produce, and explain the circular flow of money, goods, services, and productive resources in the economy.

video synopsisStudents will visit the Campbell’s plant in Napoleon, Ohio to find out how this food manufacturing giant is working with local farmers. Students will learn about the economic benefits this relationship offers both to the company and to suppliers.

teacher backgroundSince 1940, Campbell Soup Company has operated a soup manufacturing plant in Napoleon, Ohio. This plant employs about 1,200 people and manufactures 90 million cases of soup and juice products per year. Lo-cal farmers provide fresh produce such as parsley, lettuce, spinach, and carrots to the plant. Over half of the plant’s 800,000 pounds of fresh produce comes from local producers.

Although Campbell’s products have a global reach, working with local producers helps keep costs low. Shorter trips are needed from supplier to plant. This practice also helps smaller family farms make a profit. In fact, to keep up with demand, Campbell’s secures vegetable contracts up to one year in advance. This is where farmers such as Tom O’Neill, who specializes in carrot production, come in.

O’Neill produces up to 2,500 tons of carrots each year for Campbell’s to meet their demand. Since most of his carrots are used for making Campbell’s V8 juice, he is able to specialize in a smaller carrot perfect for the needs of the final product. At times, Tom must work late and on weekends to supply Campbell’s need. As with all agricultural production, the health of Tom’s crop depends on the often-unpredictable seasonal changes in weather. Even so, being a processor-contracted grower is less risky than being an open-market grower who does not have guaranteed customers or prices.

vocabuLary

AcreAgricultureCapitalize

SpecializationIncentive

EntrepreneurOpen-market



ohio academic content standards

economicsgrade 9 markets

1. Describe costs and benefits of trade with regard to: B. Productive capacity; C. Usage of productive resource2. Explain how changing methods of production and a country’s productive resources affect how it answers the fundamental economic questions of what to produce, how to produce, and for whom to produce.3. Analyze characteristics of traditional, market, command and mixed economies with regard to: A. Private property; B. Freedom of enterprise; C. Competition and consumer choice; D. The role of government.

grade 10 markets1. Evaluate the effects of specialization, trade and interdependence on the economic system of the United States.2. Analyze the development and impacts of labor unions, farm organizations and business organizations on the U.S. economy.

government and the economy3. Demonstrate how U.S. governmental policies, including taxes, antitrust legislation and environmental regulations affect individuals and businesses.

grade 11 scarcity and resource aLLocation2. Explain ways that people respond to incentives when allocating their scarce resources in their roles as producers, consumers, savers, workers and investors.

grade 12 scarcity and resource aLLocation1 Compare how values and beliefs influence economic decisions in different communities. 3. Select a current issue; identify the costs and benefits of various choices to determine the impact of personal and social economic decisions on the allocation of productive resources.

production, distribution, and consumption4. Use the circular flow model to explain the flow of money, goods, services and productive resources in the economy.



instructionaL procedure

before viewing Announce the following scenario to your class: You and some friends have been working over the summer and have managed together to save enough money to start your own business after graduation.

Ask your students to do the following: • Decide what product you want to manufacture. • Make a list of raw materials you will need to make your product. ○Yourlistshouldincluderawmaterialsthatcomefromtheground,air,orwater. (For example, clothing comes from cotton grown in fields.) ○Listthestepsthatareneededtochangethoserawmaterialstoafinishedproduct. • Decide if you want to do all of those steps yourself, or if you want to buy some of them already processed. Consider the costs and benefits of these choices. • Discuss: Why did you make these choices?

Based on the information in the Teacher Background, describe how a company such as Campbell’s is faced with similar concerns. Explain that farmers as producers must make certain decisions about what to produce based on demand.

Now, show students the video Carrots for Campbell’s and instruct them to take notes while watching.

After viewing the video write the word incentive on the board. Asks students what an incentive is (a positive motivational influence) and discuss what those might be for both the farmer Tom O’Neill and the Campbell Soup Company.

Now distribute copies of the worksheets and have students hand in when completed.

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answer key

muLtipLe choice Questions

1. B2. B3. B4. C

5. C6. A7. D8. B

9. B10. A

visuaL and constructed response Questions Individuals in and around Napoleon, Ohio They sell their product. In this case, it is V8 Vegetable juice and vegetable soup. Individuals get the goods and services that they want.

short response QuestionsPlant: It would not have any money to buy carrots and labor, and it would close down. People: They would be put of work and would not have any money coming in for their work or their carrots. Town: The town would shrink as people left to find jobs in some other town or city. Business and Individuals: The business needs individuals to buy their product, the individuals need to buy their carrots or their labor so they can buy food (including vegetable soup). Community: The community is willing to be a home for the Campbell’s Soup Company because they get taxes from the company as well as taxes from the wages of the workers who work in jobs the company creates. Growers: Growers are willing to grow carrots because Campbell’s will buy them and the growers will get a profit. They can spend the money they get to buy what they want. Workers: Workers are willing to work because they are paid to for their wages. They use these wages to buy what they want. Company: The company is willing to make soup so that they can sell it for profit. The company gives this profit to the shareholders who own the company. The shareholders spend this money to buy what they wantThe demand for unskilled labor will decrease. The demand for skilled labor will rise. The demand will increase and this will cause the price for college educated workers to rise.Competition for a seat in the local university’s computer program will increase.

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3.4.5.6.



muLtipLe choice QuestionsName: __________________Date: __________________Class: __________________

read the Questions beLow and circLe the correct answer for each. (1 point)

1) Tom O’Neill’s farm uses a very advanced machine to harvest carrots from the fields. How does this use of technology affect the demand for labor in the area?A. It makes the demand for highly skilled labor lower, because the machine does all the thinking for you.B. It makes the demand for unskilled workers lower, because farmers will use machines instead of carrot

pickers to harvest their produce.C. It makes the demand for unskilled workers higher because anyone can run the machine, and farmers

don’t want to go out into their fields very often.D. It will have no effect on the demand for labor because no one in the area wants to pick carrots for a

living.

2) Tom O’Neill could hire low-paid migrant workers instead of using a harvesting machine. What is one incentive for a producer to buy the expensive machine?A. The machine is cheaper than workers the first year you get it.B. The machine is more expensive than hiring workers for the first year, but over time it is less expensive.C. It is a capital investment rather than a labor investment.D. Machines are more efficient workers than people are.

3) Children of field workers attend school near Tom O’Neill’s farm. They see the machinery and decide to go to college instead of working in the fields. To what incentive are they responding?A. The incentive of college advertising that convinces people to go to school.B. The incentive of higher wages and better job prospects for college graduates.C. The incentive of staying in school and not going to work for four more years.D. The incentive of participating in the market economy.

4) Tom O’Neill has specialized in a type of carrot used in Campbell’s V8 Juice. It is smaller than a normal carrot. Mr. O’Neill can plant and harvest them twice in a year, doubling his productivity. Mr. O’Neill does this because he is responding to what incentive?A. Mr. O’Neill loves to farm, so anything that makes him farm more, makes him happy.B. By maximizing his production, he can hire more workers and help the local economy.C. The more carrots he sells, the more money he makes.D. Mr. O’Neill is trying to help people eat more vegetables by growing more carrots.



5) When growing carrots, farmers plant them as early in March as they can to take advantage of the spring rains. These rains are what type of resource?A. renewable resourceB. non-renewable resourceC. environmental resourceD. public resource

6) Farmer Tom O’Neill is an entrepreneur. That means that he combines what three things to make a profit?A. land, labor, and capitalB. land, seeds, and equipmentC. land, labor, and rainD. natural resources, manufactured resources, and personal resources

7) Farmer Tom O’Neill operates in a market economy, so he has to keep his customers satisfied. For example, if Campbell’s needs more carrots to be brought in quickly so that they can keep their production going, A. farmer O’Neill is willing to go back out late in the day to harvest some more carrots because he wants

the money that Campbell’s will pay him.B. farmer O’Neill is willing to go back out late in the day to harvest some more carrots because he enjoys

working in the fields and will gladly keep working.C. farmer O’Neill will not to go back out late in the day because he will have to pay overtime for his

employees.D. farmer O’Neill is willing to go back out late in the day to harvest some more carrots because he needs

to keep his customer happy or they will buy carrots from someone else.

8) Campbell’s put their plant in Napoleon, Ohio because they were responding to an incentive for doing so. What was that incentive?A. a big tax break that the city gave them for opening in NapoleonB. most of the vegetables they need to make their soups are grown in the surrounding areaC. the cost of shipping is lower in Napoleon because wages are lowD. workers in Napoleon are not likely to join unions and demand higher wages and rights

9) If Campbell’s considered moving the soup plant out of Napoleon to China, what would be their incentive?A. a better supply of carrotsB. lower wages for workersC. lower costs of shipping soup to New YorkD. new soup recipes that use agricultural products abundant in China

10) After weighing the options, Campbell’s decided to stay in Napoleon. What was the major incentive for staying?A. very low shipping cost for their fresh vegetablesB. Napoleon offered them a lower wageC. China was too close to New YorkD. the large supply of rice in Ohio



visuaL and constructed response QuestionsName: __________________Date: __________________Class: __________________

directionsUse the Circular Flow graphic below to answer the following questions.

1. According to the circular flow of money graphic, who originally owns the natural resources?____________________________________________________________________________________________________________________________________________________________________________

2. Where does the Campbell Soup Company get the money to buy carrots from the farmers and to pay workers’ wages? ____________________________________________________________________________________________________________________________________________________________________________

3. What do individuals get for their money?____________________________________________________________________________________________________________________________________________________________________________

Individuals sell labor and produce to Campbell’s

Campbell’s sells soup and vegetable juice to individuals

They get money through wages and profits in return

Consumers spend money buying soup and vegetable juice

reso

urces

money

money

goods & se

rvices

NAPOLEON, OHIO

Producer SectorConsumer Sector



short answer QuestionsName: __________________Date: __________________Class: __________________

1. Since the Campbell’s soup factory is the main employer in Napoleon, what three things would happen to the plant, the people, and the town, if everyone stopped buying vegetable soup and V8 juice? (4 points)

PlANT: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

PeOPle: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

TOWN: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

explain why the business and individuals rely on each other to survive:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



short answer QuestionsName: __________________Date: __________________Class: __________________

2. The video shows that the community, growers, workers, and the Campbell Soup Company must all work together to make soup for the entire country to enjoy. Choose two of the contributors in this process (community, growers, workers, or the company) and explain why they are willing to cooper-ate and what they will do with what they get (4 points).

Community: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Growers:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Workers: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Company: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


OUR OHIO: EXPLORING OUR ECONOMY PAGE �0

short answer Questions

Name: __________________Date: __________________Class: __________________

3-6. Imagine that Campbell’s bought a new machine that would make all of the soup without any person touching the ingredients in the process. However, this complicated machine has to have the constant attention of many skilled chefs and mechanics, and also many more college-educated computer programmers.

3. What effect will this machine have on the local market for unskilled labor? _________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. What effect will this machine have on the local market for skilled labor? _________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. What effect will this machine have the local market for college educated workers? _________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. What effect will this machine have on the competition for a seat in the local university’s computer

programming courses? _________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Documents

CARROTS FOR CAMPBELL'Sbento.cdn.pbs.org/hostedbento-prod/filer_public/thinktv/files/pdf/k...Students will be able to describe the influence of production costs on plant ... show students