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global food crisis
Corporate Takeover of the Global Food System Should Not Get UN Approval
The U.N. should address issues such as land concentration, so that peasant agroecology can have a real chance to flourish and make a significant contribution to tackling hunger, climate change, and biodiversity loss.
Jul 23, 2023
A U.N. summit on global food systems should be an opportunity to address structural inequalities and tackle hunger. It should be a chance to learn from small-scale producers whose sustainable food practices feed 70% of the world. Instead, next week’s conference in Rome will be a festival of greenwashing, allowing Big Agriculture corporations to tighten their grip on food systems.
This will be the second Food Systems Summit (UNFSS). The first, in 2021 was supposed to address the lack of progress towards the U.N.’s sustainable development goals. It was dubbed a “people’s summit” by the organizers, but caused an outcry among local producers when their calls to roll back the power of transnational corporations were cynically ignored.
Corporations that dominate global food systems, such as Bayer and Nestlé, used the summit to promote greenwashing initiatives rather than address pressing problems such as food speculation and the impact of Covid-19 on world hunger.
The U.N.’s special rapporteur on the right to food Michael Fakhri described it as “inviting the fox right into the henhouse.”
Discussions on eradicating hunger were hosted by the Global Alliance for Improved Nutrition (GAIN), a foundation partly funded by processed food and consumer goods giant Unilever, while transnational corporations were invited to discuss solutions to problems they had largely created. The whole event was an excellent opportunity for them to identify new profit-making ventures and to “capture the global narrative of ‘food systems transformation.’”
More than a thousand small-scale food producer associations and Indigenous Peoples’ groups, academics, and social movements boycotted the event, which was also widely criticized by U.N/ human rights experts and others.
The U.N.’s special rapporteur on the right to food Michael Fakhri described it as “inviting the fox right into the henhouse.”
Agribusiness vs Small Farmers
Food is a common good and access to healthy and nutritious food is a basic human right enshrined in U.N. covenants. These are the issues that governments and the U.N. should focus resources on, and next week’s summit provided a perfect opportunity.
Sadly, it looks set to simply consolidate corporate control over food and natural resources.
Hundreds of grassroots groups have called out the U.N., saying they are still being excluded and claiming the summit is “poised to repeat the failures” of two years ago and want to see fundamental change in food systems.
Here’s the picture as it stands. A handful of agribusinesses control more than 70% of the world’s farmland. Smallholder farmers, fisherfolk, pastoralists, and Indigenous peoples, who use agroecology and other sustainable practices, feed 70% of the world’s population with just 10% of global farmland.
In just the last five years, the world’s nine largest fertilizer companies—with nearly 40% of global synthetic fertilizer sales— have tripled their profits.
Agriculture is responsible for nearly 40% of global greenhouse gas emissions, almost 90% of deforestation, and 80% of biodiversity loss, the bulk of which can be attributed to industrial agriculture and agribusiness operations.
The disruption of global fertilizer supply chains has been a major focus of the U.N.’s response to the global food crisis. But the dangers of market concentration, which make food systems extremely fragile to shocks, have been largely ignored.
In just the last five years, the world’s nine largest fertilizer companies—with nearly 40% of global synthetic fertilizer sales— have tripled their profits. Rocketing fertilizer prices have less to do with disrupted supply chains than quasi-monopolies.
Despite all this—and the growing global obesity pandemic, for which consumption of ultra-processed industrial food bears a major responsibility—the U.N. continues to empower corporations. What it should be doing is addressing issues such as land concentration, so that peasant agroecology can have a real chance to flourish and make a significant contribution to tackling hunger, climate change, and biodiversity loss.
Industrial Agriculture Has Failed
A dystopian future where a handful of corporations control everything we eat is just around the corner, if we do not resist now.
About 60% of all calories consumed worldwide come from just four crops: rice, wheat, corn, and soy. Everyone is vulnerable if we are over-dependent on global corporate-controlled supply chains. Industrial agriculture has failed to address rising levels of hunger and malnutrition across the world, which are now at an estimated 828 million people.
We are facing a stark choice between unsustainable, exploitative, corporate-controlled food systems and diverse, locally sourced ecological food.
The global governance of food is being hijacked by corporate interests. The U.N.’s Food and Agriculture Organization receives less than a third of its $3.25bn budget from the world’s governments, making it dependent on “voluntary contributions”—including from corporations and their proxies—for the rest.
We are facing a stark choice between unsustainable, exploitative, corporate-controlled food systems and diverse, locally sourced ecological food that prioritises the needs and rights of those most affected by the hunger, climate, and health crises.
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Most Vulnerable Will Bear the Brunt as Russia Pulls Plug on Ukraine Grain Deal
Urgent action is needed now more than ever to help countries rebuild their capacity to produce the food they require to break their dependence on the global market.
Jul 22, 2023
Russia announced on Monday that it was suspending a crucial deal that allows grain to be exported from Ukraine to countries in Africa and the Middle East.
The grain agreement, which was brokered in July 2022 by the United Nations and Turkey to allow grain that had been blocked by the conflict to be exported through the Black Sea, was aimed at alleviating the global food crisis, which had been worsened by the war in Ukraine.
And it was effective too. Prices of global foods have been declining in recent months thanks in large part to this initiative. The U.N. FAO Food Price Index shows that prices are now 13% lower than they were in February 2022, when Russia invaded Ukraine.
Local communities in the Global South are on average now spending twice as much on a loaf of bread, fertilizer, and petrol as before the war.
But not everywhere experienced this relief. In 14 countries surveyed as part of ActionAid’s recent research into the human impacts of the cost-of-living crisis across Africa, Asia, and the Caribbean, the cost of essential items has been continuing to escalate to crisis levels over the past 18 months. Local communities in the Global South are on average now spending twice as much on a loaf of bread, fertilizer, and petrol as before the war.
It’s a far worse picture than the last time we looked. Research released in May 2022 indicated that at worst, some local communities were paying up to quadruple the food, fuel, and fertilizer prices from before the war began. Now, in Zimbabwe, where an estimated 2.8 million people are unemployed, families are spending up to 10 times more. In some districts, petrol prices reportedly rose by more than 900%, pasta by up to 750%, fertilizer costs by more than 700%, and period pads by an extra 600%.
So what will happen now that the grain deal is dead? While the U.N. is hard at work to find a solution to this problem and ensure that Ukrainian and Russian grain and fertilizer can still make it out on the global market, I simply can’t agree with those who suggest that the move will have little immediate impact due to the current harvest season in the Northern Hemisphere. While the E.U.’s “Solidarity Lanes” should be applauded for enabling the export of about 25 million tonnes of Ukrainian grain, oilseeds, and related products to world markets between May and October last year, communities in the Global South are still suffering. We can’t take the chance that prices will increase even more, further exacerbating the harsh situations faced by many vulnerable countries already facing acute hunger.
If the situation worsens, women and girls will be the hardest hit. They already are: Community leaders in 10 out of 11 of the countries ActionAid surveyed said that rates of child marriage were increasing in their local areas, while almost half of survey respondents said mothers in their communities were reducing their food intake so their children could eat. More than half of those we spoke to said the price hikes made them feel sad or hopeless.
East Africa has faced four years of failed harvests, unpredictable rainfall, and rocketing global food prices. In Somaliland, people have been pushed to the brink since war broke out more than 3,000 miles away and are facing an extreme drought which scientists say would not have happened without climate change. Hibo Aden, women’s rights officer at ActionAid Somaliland, says that the situation has become so desperate for some families in a country where in one district, the price of cooking oil has risen by 224%, that girls are being forced to marry in exchange for food and water.
Russia pulling out of the Black Sea grain initiative could plunge food consumers in countries dependent on Ukrainian and Russian food supplies, like Somaliland, into food shortage, and re-ignite food price rises and volatility. If prices go up again, with the current dollar depreciation, the food import bills for countries already suffering will become even more unaffordable, leading to millions experiencing famine.
Our food system is to blame: 75% of the world’s nutrition comes from
12 crops and five animal species, while an even smaller group of just three crops—maize, wheat, and rice—constitute nearly 60% of humans’ caloric needs. Production of these three grains, plus soybeans, is concentrated in a few key regions, and is dominated by less than 15 companies. These factors combined make it easy for any industry to maintain high prices and reduce the number of farmers, making food production highly susceptible to shocks.
Ever-rising prices are likely to continue to push communities to their limits, and the devastating impacts we are seeing—both in Ukraine and across the Global South—will only intensify. Urgent action is needed now more than ever to help countries rebuild their capacity to produce the food they require to break their dependence on the global market. The World Bank, International Monetary Fund, and private banks have a role to play here. By cancelling the debts of countries like Malawi, where in one district the price of bread has risen by up to 233%, they would enable them to invest in greater domestic food security, shifting their focus towards climate-resilient agroecological farming, strengthening local food systems to help stabilize food supplies and prices.
Don’t take it from me—Meem, a student from the remote village of Kolpara in southern Bangladesh puts it best: “The rich may get away with price hikes, but the poor will struggle. Something has to be done, or society will suffer a lot.”
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War in Ukraine, Drought Pushed Global Food Prices to All-Time High in 2022
"It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs," said the FAO's chief economist.
Jan 06, 2023
Russia's war on Ukraine, climate change-intensified drought, and other factors drove global food prices to a record high and worsened hunger around the world in 2022, the United Nations Food and Agriculture Organization said Friday.
The FAO Food Price Index—which tracks monthly changes in the international prices of grain, vegetable oils, and other commonly traded food commodities—averaged 143.7 points last year. That marked the highest level since records began in 1961 and an increase of 14.3% over the 2021 average, according to the Rome-based U.N. agency.
As The Associated Pressreported:
Russia's invasion of Ukraine in February exacerbated a food crisis because the two countries were leading global suppliers of wheat, barley, sunflower oil, and other products, especially to nations in parts of Africa, the Middle East, and Asia that were already struggling with hunger.
With critical Black Sea supplies disrupted, food prices rose to record highs, increasing inflation, poverty, and food insecurity in developing nations that rely on imports.
The war also jolted energy markets and fertilizer supplies, both key to food production. That was on top of climate shocks that have fueled starvation in places like the Horn of Africa. Ethiopia, Somalia, and Kenya are badly affected by the worst drought in decades, with the U.N. warning that parts of Somalia are facing famine. Thousands of people have already died.
In the month of December, the FAO Food Price Index fell to an average of 132.4 points, a slight decrease from the previous year. The U.N. attributed most of the decline to a recent drop in the price of palm, soy, rapeseed, and sunflower oils. Lower vegetable oil prices, which hit an all-time high in 2022, came as a result of reduced global import demand, expectations of a seasonal boost in soy oil production in South America, and declining crude oil prices, according to the FAO.
While world prices of wheat and maize surpassed previous records in 2022, the price of both cereals declined slightly in December, the organization said, thanks to ongoing harvests in the Southern Hemisphere, which increased global supply.
The price of rice, however, rose last month, as did the price of sugar and cheese, FAO noted. Beef and poultry prices fell slightly in December, but that came at the end of a year in which dairy and meat prices reached their highest levels since 1990.
"Calmer food commodity prices are welcome after two very volatile years," FAO Chief Economist Maximo Torero said in a statement. "It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies."
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