Discuss the problems that independent farmers have to face with the increasing control of the global food market by large agricultural corporations. Describe the economic and ecological impacts resulting from the increasing global exchange of agricultural

Authors Avatar

Due to the worldwide trend of urbanization, fewer people are directly engages in agricultural activities. With the declining number of independent farmers, large agricultural corporations have emerged.

Discuss the problems that independent farmers have to face with the increasing control of the global food market by large agricultural corporations. Describe the economic and ecological impacts resulting from the increasing global exchange of agricultural produce. Cite suitable examples to substantiate your arguments.

With the globalization of agricultural, the competition of farming activities has increase greatly, from local or national scale, to a global scale competition, meaning with the advancement in transportation, their competitors no longer from neighborhood but all over the world. Large agricultural corporations benefit from the scales in economics in many ways and slowly invade and success the market of independent farmers.

In general, the large agricultural corporation invade the market of independent farmers by having lower production cost. They can obtain the seeds and machines through bulk purchasing. They also have lower total transport cost of feight rate then individual farmers. As Economic Rent (ER), meaning the net profit equals to the difference between market price and the sum of production cost and transport cost, therefore it is obvious that the large agricultural corporation have higher economic rent. They are in mass production, thus they can in turn lower their selling price to attract customers. This raises their competitiveness and can expand their market by invading that of the independent farmers.

Join now!

The quality of individual farmers may not as high as that of They usually have a huge group of Research and develop department (R&D), which are highly specialize and can use the latest biotechnology to produce better seeds such as having the ability of high yielding, fast growing, pest, drought resistance. Their farming produces are with usually higher control of quality, because they have set the procedure to standardize every process in the production.

They can are also specialize in producing machines which can be use for that specific farming areas to raise farm produce and carry ...

This is a preview of the whole essay