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The Corporate Food Takeover

Summary:
Yves here. Many of you have probably noticed some of the many signs of increasing corporate buyouts in the agriculture industry. I knew Japanese companies in the bubble years that were acquiring chicken farms and processors in Vietnam and hedgies in the 1990s who were buying agricultural land in Africa and South America. In more recent years, China has been buying food producer in Africa. Corporate interests have been hoovering up potable water sources in the US and many other major countries. And these examples only scratch the surface. This post describes how this trend, along with increased techno-monitoring, is set to increase, but efforts are underway to stem this tide. By Jomo Kwame Sundaram, a former economics professor, who was United Nations Assistant Secretary-General for

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Yves here. Many of you have probably noticed some of the many signs of increasing corporate buyouts in the agriculture industry. I knew Japanese companies in the bubble years that were acquiring chicken farms and processors in Vietnam and hedgies in the 1990s who were buying agricultural land in Africa and South America. In more recent years, China has been buying food producer in Africa. Corporate interests have been hoovering up potable water sources in the US and many other major countries. And these examples only scratch the surface.

This post describes how this trend, along with increased techno-monitoring, is set to increase, but efforts are underway to stem this tide.

By Jomo Kwame Sundaram, a former economics professor, who was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought. Originally published at Inter Press Service

– Producers and consumers seem helpless as food all over the world comes under fast growing corporate control. Such changes have also been worsening environmental collapse, social dislocation and the human condition.

Longer Term Perspective

The recent joint report – by the International Panel of Experts on Sustainable Food Systems (IPES-Food) and the ETC Action Group on Erosion, Technology and Concentration – is ominous, to say the least.

A Long Food Movement, principally authored by Pat Mooney with a team including IPES-Food Director Nick Jacobs, analyses how food systems are likely to evolve over the next quarter century with technological and other changes.

The report notes that ‘hi-tech’, data processing and asset management corporations have joined established agribusinesses in reshaping world food supply chains.

If current trends continue, the food system will be increasingly controlled by large transnational corporations (TNCs) at the expense of billions of farmers and consumers.

Big Ag Weds Big Data

The Davos World Economic Forum’s (WEF) much touted ‘Fourth Industrial Revolution’ (IR4.0), promoting digitisation, is transforming food systems, accelerating concentration in corporate hands.

New apps enable better tracking across supply chains, while ‘precision farming’ now includes using drones to spray pesticides on targeted crops, reducing inputs and, potentially, farming costs. Agriculture is now second only to the military in drone use.

Digital giants are working with other TNCs to extend enabling ‘cloud computing’ infrastructure. Spreading as quickly as the infrastructure allows, new ‘digital ag’ technologies have been displacing farm labour.

With the pandemic, e-retail and food delivery services have grown even faster. Thus, e-commerce platforms have quickly become the world’s top retailers.

New ‘digital ag’ technologies are also undermining diverse, ecologically more appropriate food agriculture in favour of unsustainable monocropping. The threat is great as family farms still feed more than two-thirds of the world’s population.

IR4.0 Not Benign

Meanwhile, hi-tech and asset management firms have acquired significant shareholdings in food giants. Powerful conglomerates are integrating different business lines, increasing concentration while invoking competition and ‘creative disruption’.

The IPES-ETC study highlights new threats to farming and food security as IR4.0 proponents exert increasing influence. The report warns that giving Big Ag the ‘keys of the food system’ worsens food insecurity and other existential threats.

Powerful corporations will increase control of most world food supplies. Big Ag controlled supply chains will also be more vulnerable as great power rivalry and competition continue to displace multilateral cooperation.

There Is No Alternative?

But the report also presents a more optimistic vision for the next quarter century. In this alternative scenario, collaborative efforts, from the grassroots to the global level, empower social movements and civil society to resist.

New technologies are part of this vision, from small-scale drones for field monitoring to consumer apps for food safety and nutrient verification. But they would be cooperatively owned, open access and well regulated.

The report includes pragmatic strategies to cut three quarters of agriculture’s greenhouse gas emissions and shift US$4 trillion from Big Ag to agroecology and food sovereignty. These include “$720 billion in subsidies” and “$1.6 trillion in healthcare savings” due to malnutrition.

IPES-ETC also recommends taxing junk food, toxins, carbon emissions and TNC profits. It also urges criminal prosecution of those responsible for famine, malnutrition and environmental degradation.

Food security protocols are needed to supercede trade and intellectual property law, and not only for emergencies. But with food systems under growing stress, Big Ag solutions have proved attractive to worried policymakers who see no other way out.

Last Chance to Change Course

Historically, natural resources were commonly or publicly shared. Water and land have long been sustainably used by farmers, fisherfolk and pastoralists. But market value has grown with ‘property rights’, especially with corporate acquisition.

Touted as the best means to achieve food security, corporate investments in recent decades have instead undermined remaining ‘traditional’ agrarian ecosystems.

Big Ag claims that the food, ecological and climate crises has to be addressed with its superior new technologies harnessing the finance, entrepreneurship and innovation only they can offer.

But in fact, they have failed, instead triggering more problems in their pursuit of profit. As the new food system and corporate trends consolidate, it will become increasingly difficult to change course.

Proposed by the WEF, the UN Secretary-General’s Food Systems Summit later this year clearly seeks to promote corporate ‘solutions’. Very timely, A Long Food Movement is an urgent call to action for the long haul.

With so much at stake, representatives of food producers and consumers need to act urgently to prevent governments from allowing a UN sanctioned corporate takeover of global governance of food systems.

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