Such people argue that in some cases agribusiness is, to some extent, responsible for food crisis, both creating and sustaining it. These arguments are on the whole based on situations in the South, where traditionally land that can be farmed is done so by small scale local farmers to feed the local population. In fact 75% of people in most African countries depend on the land for a living. The problem lies in that large scale agribusiness operations leaves locals without fertile land to feed their families. Some may claim that locals can make wages from agribusiness to purchase food, or indeed benefit from what is normally a greater yield from an agribusiness affair. Frequently however this is a false claim due to two grounds.
Firstly because agribusiness activity is generally large scale, a situation most predominantly associated with mechanisation. Therefore the services of few, if any, locals would be required, besides most of which lack money for expensive inputs and lack the skills and opportunities to find waged work as a substitute. This of course renders the newley unemployed without means to purchase food, particularly that produced by the agribusiness as it tends to be expensive, due to the high cost of inputs (such as machinery and chemical fertilisers and pesticides).
Secondly because agribusinesses have tended toward cash crop production ie. foods produced for export. “Scarce resources are diverted to meet the needs of affluent consumers in cities or developed countries, leaving unsatisfied demands for basic food crops” (Glover & Kusterer, 1990:17). This, of course, means that the food is generally not suited for local consumption anyway. In defence it can be said that the revenue made on exporting these goods does provide an income to the area. In fact cash crops are vitally important in Africa. At least twelve countries are dependant on just one main crop for over 70% of their income. Despite their primary aim of making profits (not feeding the hungry), agribusinesses generally assume that the poor will be earning sufficient income to purchase food. Yet such assumptions do not take into consideration that the poor are left dependant on market and commodity prices, that characteristically can change significantly and price such social groups out of the market. Also in their book ‘Agribusiness in Africa’, Dinham and Hines point out that “the purchasing power provided by agricultural exports rarely keeps pace with the price of the manufactured products which Africa imports” (1984:11).
Nevertheless these are not the only reasons why agribusiness is often held accountable for food crisis in the South. Another problem is the role it plays in the green revolution. Often agribusiness is involved with the culturing of high yield varieties and genetically modified produce. Some GM crops are designed to produce high-value goods, which are presently imported from developing countries eg. An oilseed rape that is high in lauric acid has been designed to produce oils to substitute for coconut palm oil. Such substitutions could potentially drive down world prices or even eliminate some suppliers. Where suppliers are located in the South this could lead to a fall in export earnings and eventually food crisis. Not only this but with increased yields, market prices for goods could plummet reducing the income for those in the South, “greater productivity could intensify competition and drive don world prices – while encouraging changes in landuse away from local food production towards more lucrative exports, possibly affecting people’s livelihoods and food security” (Allen & Thomas, 2000:477). Not to mention that local farmers would be unable to compete due to the high input costs of GM farming, and the patented seeds that have to be paid for each harvest as sometimes the second generation seeds are genetically engineered to be sterile.
On top of this is the negative environmental effects the farming of such varieties can have, such as exhausted soil fertility, low water tables (such crops require more water) and salinisation. What chance do locals stand farming their land post agribusiness? In addition there is the uncertainty surrounding GM crops. It is still not yet known exactly what effects they can have on wildlife and humans. There is also the problem of cross-pollination and the creation of ‘super weeds’. Such occurrences could leave the South with severe ecological problems and potentially unable to support crops and therefore feed themselves.
On the other side of the coin agribusiness has been responsible for alleviating food crisis in some situations. “Agribusiness and rural enterprises…can have powerful and far-reaching catalytic effects in accelerating rural development” (Kinsey, 1987:6). Kinsey supports agribusiness operations on a small to medium scale, as such schemes tend to be labour intensive, and therefore provide ample employment for locals.
I do think that agribusiness in the South should be more strictly controlled, purely and simply because of its ability to trigger and sustain food crisis. Suitable controls could ensure agribusiness only has a positive effect on food crisis in the South. The way in which they are controlled however, is difficult to decide. Firstly because of all the ‘red tape’ surrounding not only the businesses but countries in the South too. Also there is a sensitivity issue, some countries reject interference and the agribusinesses are unlikely to appreciate being told how to function. Either a subtle approach needs to be taken or a severe change in national and international policy is required to ensure that agribusiness is regulated in a suitable manner so as to prevent food crisis. In all other aspects I think agribusiness should be encouraged to continue where it is benefiting the people hosting them.
In conclusion I would agree that in some situations, certainly on a large scale, agribusiness can be responsible for food crisis, but in others it can help alleviate them. It should be remembered that there are many things that trigger a food crisis and it is often not as simple as one factor being responsible. Where agribusiness is responsible for food crisis, steps should be taken to control their activities, but where it can be used or manipulated to relieve a crisis it should be encouraged.
Bibliography
-
Poverty and Development into the 21st Century, Tim Allen and Alan Thomas, 2000, Oxford University Press, Oxford Uk
-
Agribusiness in Africa, Barbara Dinham and Colin Hines, 1984, Africa World Press, Trenton New Jersey
-
Small Farmers, Big Business, David Glover and Ken Kusterer, 1990, The Macmillan Press Ltd, Uk
-
Agricultural Initiative In The Third World, The Agribusiness Council, 1975, D.C Heath and Company, USA
-
Agribusiness and Rural Enterprise, B.H Kinsey, 1987, Croom Helm Ltd., New York USA