What is the difference between farm commodities and food products? How does the number of competing firms change as farm commodities are processed into food?

Farm commodities are agricultural products such as grains, milk, cattle, fruits, and vegetables that are usually sold to processors who use the products as inputs in creating food products. Food products are processed farm commodities sold through grocery stores and restaurants. Examples: bread, meat, fish, chicken, pork, lettuce, peanut butter, and breakfast cereal. The number of competing firms in the market diminishes as farm products are refined into commercial food products.