Occupy for the Love of Food!

Tom Philpott has written a great article on why food movement actors should support Occupy Wall Street. He makes the argument that the occupations (which have spread across the world, starting today!) challenge the concentration of power in the hands of the elite, and the agrifood industry is a prime example of this concentration, elite control, and marginalization of the consumer and small producer.

I thought I'd take three of Tom's key points, which use American examples, and make the case for his argument applying to Canada. (Of course, many of his examples of multinational corporations apply to us here as well.)

1. The food industry is a big fat monopoly

• The top five food retailers in Canada account for 60% of sales (Agriculture and Agri-Food Canada)
• Nilsson Bros. Inc. is Canada’s largest beef packing corporation, owning nearly half of Canadian capacity. In addition to its packing plants, holdings of the Nilsson Bros. conglomerate also include (wholly-owned or in partnership) feedlots, most of western Canada’s large auction facilities. ('Losing Our Grip', 2010)
• Three companies -- Archer Daniels Midland, Bunge and Cargill -- control an estimated 90% of the world's grain trade (USA Today) and the prairies export 80% of the grain they grow.
• The largest 5% of food manufacturing establishments accounted for over 50% of sales in 2003 whereas the smallest 80% of establishments accounted for only 15% of sales. (Agriculture and Agri-Food Canada)
• And, since transnational corporations sell the majority of Canadian farmers' inputs, some global stats are relevant: the top 10 seed companies account for 67% of the global proprietary seed market (Monsanto is 23% of that number); the top 10 pesticide firms (the six largest of which are also in the top 10 seed companies) control 89% of the global agrochemical market. (ETC)

2. Wall Street's greed leaves millions to starve—literally. 

• "In recent years, the financial markets have discovered the huge opportunities presented by agricultural commodities. The consequences are devastating, as speculators drive up food prices and plunge millions of people into poverty... Since last June alone, higher food prices have driven another 44 million people below the poverty line, reports the World Bank. These are people who must survive on less than $1.25 (€0.87) a day." (Der Spiegel, trans.)
• "Holdings in commodity index funds ballooned from US$ 13 billion in 2003 to US$ 317 billion by 2008...The promotion of biofuels and other supply shocks were relatively minor catalysts, but they set off a giant speculative bubble in a strained and desperate global financial environment. These factors were then blown out of all proportion by large institutional investors who, faced with the drying up of other financial markets, entered commodity futures markets on a massive scale." (De Schutter briefing note, 2010)
•  Some advice from a Canadian investment advisor: "the biggest and most worrisome near-term crisis of all, is a food crisis; and you will have the opportunity to make a ton of money from it. Speculators love crises as well, and only add fuel to the fire, which multiplies your gains. The writing is already all over the wall for a pending food crisis; the west just hasn’t seen it on a domestic level yet, but believe me, we will. It’s time to get ahead of this trade." 
•  The extension of food speculation, as you know from reading this blog, is speculation in land. "Bay Street investors like Sprott Resources and Lawrence Asset Management have been buying into farmland in Uruguay and the Democratic Republic of the Congo." (Canadian Dimension)

3. Our politicians are in bed with agribusiness.

• A homegrown prairies example: Assiniboia Capital Corp, "the largest farmland investment management company in Canada, with almost 100,000 acres under management" (from its website). Organization includes: Co-founder Brad Farquhar, who is the former Executive Director of the Saskatchewan Party and former Executive Assistant to Sask. Party leader Elwin Hermanson; Gord Nystuen—General Manager of Assiniboia’s farm input financing division, Input Capital—is former Saskatchewan Deputy Minister of Agriculture, former Chief of Staff to the Premier, and former Chair of Saskatchewan Crop Insurance Corporation; Advisory Board member Lorne Hepworth is President of Croplife Canada and former
  Saskatchewan Minister of Agriculture, Minister of Energy and Mines, Minister of Education,
  and Minister of Finance. (Assiniboia Capital website)
• Assiniboia Capital has tripled its land base over the past two years.  In light of this, it is interesting that Assiniboia’s primary capital source is taxpayer-owned and federal-government-controlled Farm Credit Canada (FCC).  ('Losing Our Grip', 2010)
• Five of the 100 lobbyists named in the Top 100 Lobbyists list compiled annually by the Parliament Hill insider newspaper The Hill Times have agriculture or food sector clients. (Western Producer)

To borrow a phrase from Dave Oswald Mitchell's excellent essay,

Occupy the market. Occupy the commons. Occupy the future.

Down to Earth on Land Grabs

This is a very important article if you would like to understand the global phenomenon of land grabbing. The researchers spent months in seven African countries, talking with representatives from every sector - international financial institutions to governments to individual investors to affected community members. A summary, and a few of the more arresting quotes:

By referring to surging influx of capital into primarily African land markets as ‘foreign direct investment’, players in the international policy arena including Food and Agriculture Organization (FAO), World Bank, International Fund for Agricultural Development (IFAD), and UN Conference on Trade and Development (UNCTAD) have affirmed that responsible land investment is possible and imply that African nations are beneficiaries in these deals. Their hope is that land investments will presumably create what has been hailed a ‘win-win situation’ in which food-insecure nations increase their access to food resources and investors profit from exports, while ‘host’ nations benefit from improved agricultural infrastructure and increased employment opportunities....reports reveal that these largely unregulated land acquisitions are resulting in virtually none of the promised benefits for local populations, but instead are forcing millions of small farmers off ancestral lands and food-producing farms in order to make room for export commodities...

According to Susan Payne of Emergent Asset Management ‘in South Africa the cost of agri-land, arable good agri-land that we are buying is one-seventh of the price of similar land in Argentina, Brazil and America. That alone is an arbitrage opportunity. We could be moronic and not grow anything over the next decade and we would still be making money,’ reflects true intentions of vultures sweeping into Africa, taking over land and other resources to profiteer from it....

I was in Zambia in February where the government is launching a farm block scheme that is being touted as a scheme to end poverty and bring economic development. In a meeting with a very high official in the ministry of agriculture, I asked what the purpose of the scheme was and he said, ‘Economic upliftment and poverty alleviation.’ And I asked, ‘How do you plan to do that? Are you asking investors for a lot of money for the land?’ And he said, ‘No, you have to put in $5,000 for putting in your tender; the land is really cheap.’ So I asked him, ‘Are you asking to put in infrastructure?’ ‘Oh, no, the government is putting in the necessary infrastructure.’ ‘OK, are you asking for a specific number of jobs that need to be created by these investors so we know that livelihood expansion happens?’ And he said, ‘No you can put in some general language around employment creation. We don’t ask for hard numbers’. So I asked him, ‘Will you help me understand how you will meet this objective of poverty alleviation and economic upliftment of the country when you are not asking investors for anything.’ And he comes close to me, smiles and says, ‘You and I both know that there is no such thing as a good foreign investor.’

And lest you despair and fall into apathy, there is encouraging news at the end of the article...