Tag Archives: Industrial food system

advocate, Corporate control of food, Cost-price squeeze, Demographic crisis, Small-scale farming

The real costs of cheap food

Food Inc - lifting the lid on the industrialised food system
Food Inc – lifting the lid on the industrialised food system

The real costs of ‘cheap’ food

Nick Rose

This article first appeared in the Coffs Coast Advocate, 19.2.11

There’s been plenty of talk over the past month or so about the impact that the extreme weather events north of the border will have on food and grocery prices, vegetables and bananas especially.

There’s lots of things to say about this, beginning with the fact that if the mid-north coast still had a viable banana industry, and if production wasn’t so centralised and concentrated in cyclone-prone areas of north Queensland, then consumers might not be so vulnerable to the sorts of price spikes we’re likely to see in the coming months.

Be that as it may, there’s a bigger question at stake which is rarely addressed, and that’s whether the ‘normal’ price we pay for our groceries is sufficient to maintain a healthy, diverse and viable agricultural sector in this country over the medium and long-term, given the way that current market mechanisms operate.

It’s hardly any secret that many farmers are doing it tough, and have done so for a long time. So it should come as no surprise that Australia has lost around 50,000 farmers since the mid-1960s, and the exodus continues, with five farmers leaving the land every day.

Nor should it be any surprise that the average age of the Australian farmer is approaching 60. There simply aren’t the incentives for young people to want to embrace agriculture as a career and lifestyle choice. Which begs the question: who’s going to do the work of feeding us in 15 or 20 years’ time, when most farmers will be approaching 80, and there’ll be 35,000 fewer of them?

Does this sound like a crisis-in-the-making to you? It certainly does to me. In fact, it’s a crisis that’s been with us for many years now.

Which brings us back to the central issue: the proper cost of food. Through the centuries, farmers have always sought a fair price – a just price – for their produce. The trouble in recent decades is that they simply have not been getting it. At the heart of the global crisis in agriculture – Australia is but one of dozens of countries affected – is that farm-gate prices have failed to keep pace with the rising costs of inputs, freight and labour. In many cases farm-gate prices have barely risen at all.

Alongside this cost-price squeeze, we have seen an equally strong trend towards the concentration of ownership and control of most aspects of the food-value chain: from seed, to agro-chemicals, to grain trading and meat-packing, to food processing and manufacturing, and to retailing. We have witnessed the corporatisation and monopolisation of food and agriculture.

Many would say that the two trends  – the farm crisis, and the growth of agri-food monopolies – are closely linked. So closely, that the latter brings about the former.

There’s no simple answer to this, and I’m certainly not advocating a big price hike in groceries for consumers, least of all the many millions of middle and low-income Australians who are experiencing cost-of-living pressures already, with electricity and petrol price rises, not to mention the constantly rising cost of housing. But the question remains: how do we make farming viable – especially for smaller scale, bio-diverse farms – and yet keep food affordable?

We do need to move away from the culture of cheap food, where price is the sole criterion for making purchasing decisions. The logic of the food system as it stands points in one direction: the factory farm. And if you want to know why that’s a future we ought to say no to, come and watch Food Inc: see the interviews with factory farmers and workers in the United States; the conditions in which the animals are kept; the phenomenal waste that is generated, and the severe consequences for human and environmental health. The good news is that there are alternatives, and they’re being implemented all over the world, including on the Coffs Coast.

Alternatives, Collaborative cultures and networks, Corporate control of food, Democratic food systems, Fair Food systems, Food sovereignty, Growth paradigm, Local and regional food economies

Environmental Sustainability and Social Justice Requires Democratic Food Systems

This essay outlines the ‘biophysical contradictions’ and crises of legitimacy that the globalising industrial food system is now confronting. It argues that the system has become oligarchic by nature and is incapable of resolving these contradictions and crises within its own terms of continued geographical expansion and technological change, the dialectic of ‘plunder and productivity’. I argue that only a much more democratic food system can achieve lasting environmental sustainability and global social justice; and that developments in food sovereignty from around the world offer much promise towards these ends.

Hand plant

Some excerpts:

As in other spheres of human life, the most clearly apparent legacy of the era of neoliberal capitalism in food and agriculture is sharply rising inequality (Duménil and Lévy 2001: 578; Harvey 2005; Guthman 2011: 62). It is no exaggeration to categorise the global food system as oligarchic, even plutocratic, with a small number of giant transnational corporations controlling the sectors of research and development, proprietary seed, agri-chemicals, grain trading, meat packing, food processing and, increasingly, retailing, to the detriment of most producers and consumers alike (Patel 2007: 12-15). The system is designed to meet the needs of corporations for profit and capital accumulation, with the goals of human health and ecosystem integrity being secondary or tertiary considerations.

…

On one level, the plutocratic global food system faces a crisis of legitimacy, as the perversity of its operation, and the extent of its dysfunctionality, becomes more widely known. A crisis of legitimacy does not, however, translate into a systemic crisis, as long as the circuits of production and consumption can continue to be closed, enabling the system to expand and capital accumulation to persist. On another level, the system is confronted by a series of ‘accelerating biophysical contradictions’ (Weis 2010) which have the very real capacity to undermine its continued conditions of existence.

…

The conclusion to be drawn from the above discussion is that industrialising capitalist agriculture finds itself at a serious impasse; and yet its promoters in Northern governments apparently find themselves capable only of urging its continuation and expansion because their worldview is so constrained by orthodox economics, and the vested interests of large corporations, that they cannot see any alternative. Further, the ‘long waves’ of capitalist expansion over centuries have in turn rested on a series of agricultural revolutions, beginning with the first English agricultural revolution of the ‘long seventeenth century’; succeeded by the second English agricultural revolution of the nineteenth century, and most recently the industrialisation of agriculture, led by the USA, in the twentieth (Moore 2010: 403). These revolutions have played this enabling role by bringing about, through a combination of outright ‘plunder’ (in the form of the dispossession of indigenous peoples of their land and resources) and technologically-driven productivity gains, an ‘ecological surplus’, with ‘cheap food’ at its centre, that has managed to restrain the cost of labour relative to other factors of production, and so enable sustained profitability (Gutham 2011: 54; Moore 2010: 392-3).

The trouble is that as capitalist industrial agriculture encounters its biophysical contradictions in the form of a series of planetary boundaries and a steadily widening ‘ecological rift’ between humanity and nature (Foster et al 2011: 76-79; Rockstrom et al 2009), and as the global capitalist system as a whole now appears to be stagnating and entering a period of crisis, no new agricultural revolution, and thus no new ‘ecological surplus’, is in sight. Large hopes have been, and continue to be, placed in genetically modified organisms, but the evidence to date reveals a disappointing ‘failure to yield’ (Sherman 2009). The current era of cheap food may be drawing to a close, thus elevating the current crisis into a truly systemic, ‘epochal’ one, and intensifying the uncertainties and risks of the decades ahead (Moore 2010: 398).

…

Together, these pillars represent a pathway to a democratic food system. In transitioning away from the destructive oligarchy and plutocracy of market-led industrialised agriculture and agri-food regimes, the democratisation of food systems is a pre-condition to making them sustainable, fair and resilient. Many regions in North America have years of experience with democratic governance of their food systems via Food Policy Councils, and these models are now being embraced and adapted elsewhere (Food First 2009). At the global level, the reformed Committee on World Food Security offers the possibility of a more inclusive space for policy formation; and La Via Campesina have articulated a powerful framework for the protection of peasant and family farmers in their draft Declaration on Peasants’ Rights (La Via Campesina 2009). The food sovereignty movement has momentum: can it shift the power of vested interests?

To read the full article, follow the link below and go to pp33-39:

Political Reflection Vol 3 No 4