The New York State food industry is one of the most diverse and dynamic state-wide industries in the country. Increasing manufacturer consolidation along with intensifying competition has created a dramatic need for more and better information regarding both current operations and anticipated trends in the food industry. This report is the first in a series of annual studies which examines the nature of the food industry in New York State, with a particular focus at the retail level. The research approach for this study consisted of gathering information and operating data from a variety of government and industry sources and included an in-depth questionnaire sent to every wholesale and retail company operating in N~w York State. Until now, such comprehensive and interrelated information has never been assembled in one place. The picture that emerges from this study is that of an industry which is vibrant and dynamic. New York State supermarkets lead the nation in a number of key productivity measures, while at the same time lagging behind in a number of indicators relating to technology adoption and innovation. Reflecting New York's great ethnic and cultural diversity, the report points sharply to the significant degrees to which the State's retail food companies have responded to this unique challenge. New Yark State supermarkets, for example, carry nearly 50 percent more products than their counterparts in the rest of the United States in similar size stores. While the report quantifies many aspects of the New York State food system, it also raises a number of questions and challenges. Our objective in future studies is to further examine the benchmarks established here, explore new food industry issues, and continue to provide food industry professionals with timely information on the changing conditions of this dynamic industry.