Globalization of world food markets has had a number of unintended consequences. Nations find themselves limited in their ability to avoid food shortages in the face of increased consumption elsewhere on earth. The poor all over the world are adversely affected by food price increases. The risks inherent in the globalization of food production have not yet been adequately addressed within the system, leading to the potential of further shocks in the future.
Global Food Markets
The idea of global food markets relatively new. The economic theory of comparative advantage gave rise to the idea that a country should only produce those goods in which it has a comparative advantage and use the income made from that production to purchase the remaining goods that it has. The result of this idea has been the rise of the global economy, and all commodities are impacted by this global trade. Food markets have emerged as one of the major commodity markets affected by global trade. Nations that cannot or do not produce enough food to meet their own needs have survived and even grown as food importers. Tied to this growth is the fact that economic expansion increases the purchasing power in many parts of the world has increased consumption per capita, so say nothing of population growth.
Global food markets function roughly in the form of perfect competition, meaning that there is equal information among all buyers and that the products are largely indistinguishable. There are substitute products, for example lentils can be substituted for white beans and tea for coffee. Prices are therefore set on the world market, and are driven by agricultural production, demand, the cost of inputs such as fuel and to a lesser extent the price and availability of substitutes. Demand is increasing, which has meant that in recent years when shocks occurred in either the price of inputs such as with the 2008 oil price run-up or when supply falls due to a decline in agricultural output, prices increase significantly. The problem can then be exacerbated as countries move to protect domestic food supplies with trade barriers.
There are several impacts of escalating food prices. The world’s poor, for whom food costs are a significant component of spending, suffer the most as they must reduce their food consumption. In the wealthiest countries, food prices increase resulting in inflation if the cost increases are sustained. In other nations, governments find their budgets strained by the need to spend more on world markets to provide feed for their people. If the strain grows too great, as has been the case in Venezuela, the nation faces currency devaluation, which in turn reduces purchasing power and reduces food intake.
The Case for Increased Trade
Comparative advantage created global food markets, and it is the most powerful tool by which food price shocks can be alleviated. When nations use trade barriers to shore up their own food supplies, they lower the supply on the world market, which drives up the price and creates even worse shortages in other nations. If nations committed to greater free trade, the markets would be more liquid, and therefore less subject to these types of strongly negative price shocks. Prices would increase during times of shortage, but the impacts would be lower. Tariffs may alleviate problems domestically in the short run, but they also cause harm to the global market for food.
Food Security
The problem with comparative advantage is not that it fails to work — it does work. The problem is that it convinces some nations to eschew food production. Through trade in food, populations grow rapidly in places that normally could not sustain much human life. Rapid population gains in desert landscapes like the American Southwest and the Arabian Peninsula are perhaps most emblematic of this problem. This commitment to surviving via the production of other goods and trading them for the means to buy food works as long as there is sufficient food to purchase. What the spring of 2008 indicated was that for the first time we are beginning to realize that there are constraints to this produce and trade strategy. The earth has limited capacity to produce, and when demand exceeds this capacity, the inevitable result will be starvation.
National food markets function in a similar fashion to global ones. The presence of a border, however, allows for that market to become closed. Nations that can feed themselves will continue to do so even if there is unmet demand elsewhere, because ultimately food is more important to survival than money. The value of money for survival, after all, is dependent on the ability to exchange that money for the means of survival. During the food price run-up in the spring of 2008 many nations restricted trade in key foodstuffs, a trend that is likely to escalate in the face of rapidly increasing demand.
Agribusiness
In Monsanto’s 2009 Annual Report the company points out that a farmer today must feed 130 people, whereas 30 years ago a farmer only fed 25 people. The company’s mission, therefore, is predicated on increasing the yield of agricultural land in order to help meet the needs of a growing population. Innovation is at the core of this strategy to improve yields (Monsanto 2009 Annual Report). There is a tacit recognition in this strategy that demand is beyond our control, so we as a species must work to increase supply. There are risks inherent with Monsanto’s innovations, of course, but agribusiness does offer the hope of increased yields and with it the ability to feed the world’s growing population.
Imperialism and Neo-Colonialism
The application of the comparative advantage model of trade on the world can be viewed as an act of imperialism. The concept may be universally true but its application is rooted squarely in Western thought. The modern global trading system was designed by Western nations and it, more or less, serves to meet the needs of Western nations. The food price shock impacts illustrate this — we see it as a source of inflation while the world’s poor see it as a threat to life. In times of food shortage, we can still afford food. Moreover, many Western nations have done a better job of protecting their food supplies than the developing world. This has occurred because weak governments in the developing world have had little impact on global trade policy and have little power over the actions taken by multinationals on their soil due to rampant corruption. Ultimately, the solutions proposed for hunger in the developing world are those proposed by agribusiness and bodies rooted in Western thought such as the World Trade Organization.
Western food interests have also guided consumption patterns in the developing world, to the detriment of food security. The example of swapping lentils for white beans is important, because aid agencies imposing diets on people have the ability to make such substitutes based on pragmatism. In many parts of the world, however, traditional foods are being replaced by heavily marketed foreign foods (Streitfeld, 2008). Nations that do not grow wheat now eat bread, causing trouble when the price of wheat escalates if local producers of substitutes have exited their businesses due to falling demand. Likewise, a wheat price increase causes crisis a land where noodles or pasta are the norm, because consumers will be reluctant to switch to rice or other cheaper substitute. At the low end, consumers dependent on rice have few if any lower-priced options in the event of a rice price shock.
Conclusion
The patterns of food consumption and food production that evolved over time around the world have been dramatically disrupted by modern global food markets. Nations consume more than they can produce, and they consume items for which they must trade. This dependence on trade for survival is a challenge for government both at the national level and the international level. The shifting patterns of food consumption represent neo-colonialism because they are typically influenced by either Western interests or Western ideas, both of which may be applied roughly to a foreign nation in a manner that is incompatible with long-term success. While agribusiness and free trade offer the promise of food security across the globe, they do not address the issue of rapidly increasing demand, and may ultimately compromise food security in poor nations so strongly that future food shocks will be met with more starvation and crises than occurred during the food price run-up in 2008.
Works Cited:
Monsanto 2009 Annual Report. Retrieved July 16, 2010 from http://www.monsanto.com/investors/financial_reports/annual_report/2009/letter_to_shareowners.asp
Streitfield, D. (2008). A global need for grain that farms can’t fill. New York Times. March 9, 2008.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Literature
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Finance
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
Computer science
Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!
Psychology
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
Nursing
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Sociology
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
Business
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
Statistics
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Law
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
Reasons being:
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
