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Global Food Security Challenges and Opportunities
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Food Security and Developing Countries

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Food security and Globalization

Food Security and Developing Countries

  1. 1. The issue of access to food in Developing countries
  2. 2.  Food is an absolute human right (UN), however 800 millions people suffer from hunger each year (undernourished) (FAO 2014)  Food security is a priority goal for global governance (G20 + WB + Davos Forum). Objective: to allow each human to access to “quality agricultural products”  Global governance on this issue is build with the participation of many global and local actors: WB, FAO [Food and Agriculture Organization of the UN], Governments, NGOs, local civil associations and the growing presence of MNFs
  3. 3. Hunger in DCs and LDCs: more vulnerable countries are from Sub-Saharan Africa (basically: % of people who are undernourished) India: 17,8% China: 5,4%
  4. 4. Orange countries suffer more from hunger
  5. 5. Agricultural characteristics since the 2nd War World  Strong increase in productivity at the global level thanks to : Subsidies in ICs (currently subsidies for this sector are representing more than 40% of the European budget) Green revolution in many DCs as China and India to face the population growth Actually, world is producing enough food:  To sustain world population To avoid any famine  To tackle the nutritional problem
  6. 6. Productivity is growing almost eveytwhere
  7. 7. Brief presentation of the USA (Farmland Forecast 2015) that ranks 1st for food security (FAO 2013)  Households in the US dedicate 6% of their income for food  UK 9%  France 14%  Brazil 25%  India 35%  Kenya 45%  World share of the US agriculture:  26% of the world soybean production  41% corn  20.5% cotton  13% wheat
  8. 8.  US agricultural industry: 25% of global market (they have important MNFs as Mars, PepsiCo, Kellogg's, Coca Cola, Johnson&Johnson, Kraft; they count on a huge national market; they reach an intensive and very productive agriculture thanks to subsidies) => Feeding more and more people in the world  1.4% of the population is employed in agriculture Vs 61.4% in China; 48,8% in India; 11,2% in Brazil; 8,3% in Russia; 4% in EU; for Sub-Saharan Africa and Southeast Asia: agriculture is the main activity for 80% of the population
  9. 9. Agriculture is very important for DCs: (1) to guarantee human being’s necesities and (2) because many people are still living in the countryside
  10. 10. We are producing more and more agricultural products however there is an important problem of access to food, food prices are rising exponentially and there is a worrying deterioration of the Food security in many DCs
  11. 11. Evolution of food prices
  12. 12. Food prices increase more than other goods
  13. 13. Case of India
  14. 14. Food security global index (105 countries were evaluated; FAO 2013); USA are in the 1st place and Japan in the 2nd; Congo: 105  Takes into account: Quality Accessibility Food availability
  15. 15. Activity:  Form groups of 3  Answer the questions (20 minutes): 1. What are the main reasons to explain the food crisis? (rising prices + lack of access to food) 2. How to resolve this issue?  Make your presentation
  16. 16. Main reasons to explain the current food crisis
  17. 17.  Geopolitical instability in Africa (conflicts and failed states) very often caused by the struggles between ICs countries to access to natural resources  Environmental change (sub-Saharan region) due to global warming  Globalization and MNFs: global networks tend to concentrate the distribution in ICs (Purchasing power) => There is an easy access in ICs and more and more difficulties to access to food in DCs Current situation: growing concentration of the production/distribution of food products among few MNFs oligopolistic situation
  18. 18.  Due to the global distribution chains there is a rising number of intermediaries => tends to increase the price (each one takes a profit)  In emerging countries we have seen a steady (1) rise in the Demand for agricultural products and (2) change of diet ↑ World population Purchasing power is increasing in BRICS Diversification of the daily diet (↑ milk and meat) It means a higher demand for water too: 1kg
  19. 19.  More and more global actors are looking for profitability:  For over a century, food prices have dropped but since the 2000s they started to increase (Neveu 2013)  Many actors started to think in terms of profitability => they invest in big exploitations in Africa or Latin America (Banks, Insurance companies, Big fortunes, Governments...) Consequence: Many actors speculate over agricultural products and natural resources => high volatility of the prices Agro-industry sector and big farmers know that prices will be higher in the future => these actors are storing the food products to be able to sell later  ↓ Current supply  ↑ the current price (Cascante)
  20. 20.  Many actors are buying fertile lands in many DCs: Governments of countries with important problem of food security and huge financial capacities (Saudi Arabia buys land in Ethiopia; China in many African countries) Speculators (Banks and MNF): Buying and selling Consequences: Concentration of the food towards countries with financial capacities Many fertile lands are not dedicated to the
  21. 21. The purchase or lease of lands  Buyer countries (FAO 2010): 1. Saudi Arabia (2 million of hectares) 2. India (1.6Mha) 3. South Korea (1.4Mha) 4. Japan(1mha) 5. Egypt(0.89Mha) 6. USA(0.7Mha) 7. China (0.3Mha) Land sold:
  22. 22. Green: purchasing countries and Orange: seller/renter countries
  23. 23. China’s land acquisition: Ukraine, Philippines, Laos, Mozambique, Zimbabwe, Russia, Tanzania, Zambia, Democratic republic of Congo.…
  24. 24. China purchased las year (in 2014) 3 million hectares of Ukrainian land for agriculture use (Source: Duartz)  Represents 5% territory and 9% agricultural lands in Ukraine  China consumes 20% agricultural global products but produces only 10 % of the products at the global level That area is roughly the size of
  25. 25.  Biofuels (ICs are committed to produce “green energy” and they also want to recover their energy sovereignty/security: it is the case for China): ICs and DCs use grains for energy production: Sugar cane, soy, corn, beetroot… Many are imported from DCs => consequence: ↑ prices and reduce the area of farming lands dedicated to feed local population 75% produced in Brazil and USA However only 1% of the arable lands
  26. 26.  Tariffs on exports (not forbidden by WTO; Argentina, China, India, Russia, Vietnam, Ukraine) Ex: In Argentina Kirchner adopted high tariffs on export of agricultural products ( to slow down exports)  More products remain in the national economy  It allows to maintain low prices (other consequence for the rest of the world: less agricultural products => increase price)  Subsidized agriculture from ICs destroys local agricultural fabric in DCs (it is almost impossible to compete): they are largely responsible for the disappearance of local suppliers (access to food, migration, violence…)  ↑ Contamination of land and water in agricultural
  27. 27. Conclusions Globalization and “financialisation” have eliminated small producers to build big exploitation with a production oriented towards consumers with purchasing power (export of agricultural products is easier due to the greater capacity to transport food)
  28. 28. Consequences:  Less agriculture jobs (economies of scale)  Lack of supply for local populations (due to the concentration of food supply there is a deterioration of the local access)  (1) need to import through big global distributors (vulnerable to international prices and monetary fluctuation) or (2) depend on humanitarian programs  Alignment of prices to those in ICs => In 2008: 30 countries suffered “hunger war” caused by an increase in the prices for basic products (Wheat and corn prices were multiplied by 2)  Poverty and Migration  Change of diet  health problems  Monoculture  loss of biodiversity and reduced soil
  29. 29. The problem is not a matter of quantity produced but management (i.e. distribution and access) (Peggy Pascal from “Action against Hunger” NGO) For most of the DCs there is an important loss of food security  they depend on (1) the international prices and (2) the political/social/economical/climatic dynamics of ICs to get access to food The problem is the same when we talk about access to (clean) water: It is not a problem of quantity but it is a problem of management and concentration Water is more and more managed by MNFs with private interests Agriculture, which needs huge quantity of water, tends to export the “blue gold” from DCs to ICs (Foucras 2014)
  30. 30.  All the attention is now turning to family farmers (FAO, WB or NGOs) because they play an important role in food security ( FAO 2014):  Provide more than 80% of the global food production/consumption  Stimulate local economies  Strengthen autonomy => they avoid import of food which leads to a worrying instable situation  They have the capacity to adapt price/production to local market  They produce according to the characteristics of the local environment  They participate to the sustainable development model since they consider environment and they allow to build a model much more inclusive and stable (they enable to low poverty, migration and
  31. 31. Main Food Importers
  32. 32. Main Food Producers
  • TALIBMUTONGI

    Aug. 19, 2019
  • CuixiaSun

    Oct. 14, 2018
  • RajatSinghSomvanshi

    Apr. 20, 2017
  • MerinaMaharjan1

    Nov. 21, 2016

Food security and Globalization

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