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Arabica Robusta

Gambling with the futures | SocialistWorker.org - 0 views

  • HISTORICALLY, FUTURES contracts were traded primarily between producers of commodities and consumers of commodities at large, regulated commodities exchanges. Most futures contracts eventually resulted in the actual delivery of a commodity on a set date. That's all changed in recent years. Now, the bulk of firms trading on futures exchanges are speculators with no intention of ever receiving delivery of the commodities they are trading.
  • All other things being equal, the prices of expiring futures contracts should converge with the pricing on spot markets on the date of expiration--that is, the price of oil in June should be pretty close to the price of oil futures contracts trading today that expire in June. But there are huge divergences developing. Why? Because there are too many investors chasing too few futures contracts, and this is creating demand for the underlying commodity that drives up the price of the commodity to be delivered in the future.
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    HISTORICALLY, FUTURES contracts were traded primarily between producers of commodities and consumers of commodities at large, regulated commodities exchanges. Most futures contracts eventually resulted in the actual delivery of a commodity on a set date. That's all changed in recent years. Now, the bulk of firms trading on futures exchanges are speculators with no intention of ever receiving delivery of the commodities they are trading.
Arabica Robusta

What's the new global source for fresh, shiny produce? Famine-ridden Ethiopia - 0 views

  • Every day, a workforce of 1,000 locals pick, pack and load hundreds of tons of fresh produce onto waiting trucks, including 30 tons of tomatoes alone. After reaching the capital, Addis Ababa, the produce is flown to a handful of Middle Eastern cities, entirely bypassing Ethiopia, one of the hungriest places on the planet. The trip from vine to store shelf takes less than 24 hours. It’s the latest project by Saudi oil and mining billionaire, Sheikh Mohammed Al Amoudi. And it may be the future of farming.
  • The controversial trend has been dubbed “outsourcing’s third wave”—following manufacturing and information technology (IT) in the ’80s and ’90s. The high cost of installing irrigation systems, and importing fertilizers, combines and tractors is no deterrent. Defenders of the new projects say they’re bringing desperately needed new technologies, seeds and investment to Africa. But opponents see the trend as a “land grab” that is forcing poor farmers off their land, and benefiting only the governments inking the deals.
  • The new scramble for Africa was triggered by a convergence of events: surging demand for biofuels, rising consumption patterns in China and India and the 2008 global food crisis, when the price of corn and wheat tripled, almost overnight. Responding to sudden hyperinflation, rioting and panic buying, at least 30 countries, including Argentina, Vietnam, Brazil, Cambodia and India, banned or sharply reduced food exports. In short order, Japan and South Korea, who import 70 per cent of their grains, joined a parade of countries turning to Africa to lock in means of production beyond their borders.
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  • When it emerged that Daewoo, the South Korean giant, had signed a 99-year lease granting it close to half of Madagascar’s arable land, protests broke out in Antananarivo, the country’s capital, eventually sinking both the deal, and the president.
  • as Heilberg told the German magazine Der Spiegel after closing the deal in Darfur, “When food becomes scarce, the investor needs a weak state that does not force him to abide by any rules.” Sudan, a dictatorship ranked among the five most corrupt countries on the planet, certainly qualifies. Heilberg’s deal was approved by the deputy commander of Sudan’s People’s Liberation Army (SPLA), the official army of semi-autonomous southern Sudan. “This is Africa,” he recently told Rolling Stone. “The whole place is like one big mafia. I’m like a mafia head. That’s the way it works.”
  • Some African intellectuals bridle at Western criticism of the play on Africa. “They’re here because we want them here,” says Teshome Gabre-Mariam, one of Ethiopia’s top lawyers. “We can’t ignore the development potential of this venture. We have everything to gain, nothing to lose.”
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    Every day, a workforce of 1,000 locals pick, pack and load hundreds of tons of fresh produce onto waiting trucks, including 30 tons of tomatoes alone. After reaching the capital, Addis Ababa, the produce is flown to a handful of Middle Eastern cities, entirely bypassing Ethiopia, one of the hungriest places on the planet. The trip from vine to store shelf takes less than 24 hours. It's the latest project by Saudi oil and mining billionaire, Sheikh Mohammed Al Amoudi. And it may be the future of farming.
Arabica Robusta

Pambazuka - A new Philanthro-Capitalist Alliance in Africa? - 0 views

  • Elegantly simple in its proposal and presentation, AGRA is the global face of a renewed international effort to revive Africa’s sagging agricultural research institutions and introduce new Green Revolution products across the sub-Sahara. The complex array of institutional and financial interests lining up behind Gates and Rockefeller include multilateral and bilateral aid organizations, national and international research institutes, and the handful of powerful multinational seed, chemical, and fertilizer monopolies upon which the entire financial future of the new Green Revolution ultimately rests.
  • That same week in Davos, the soon-to-retire president of Microsoft put his money where his mouth was by giving another $306 million to AGRA. That’s a lot of recognition, by anyone’s standards. Clearly, the “halo effect” created by the Bill and Melinda Gates Foundations’ altruism will benefit everyone associated with AGRA—from the CGIAR to Monsanto, DuPont and Syngenta.
  • as a creative capitalist, what—or for whom—is AGRA’s market-based reward? Recognition for Microsoft? Undeniable, but not significant or necessary for a company who already has all the recognition it wants. Gates’ financial interests in genetic engineering? These investments pale behind AGRA itself. The answer is; there is no market-based reward. Rather, the prize is political. AGRA, backed by Gates’ enormous philanthropic power, bolstered by the best world-renown diplomats and CEOs money can buy, and driven by the sheer financial and institutional momentum of the industrial players within the Green Revolution, is a political machine of immense proportions. AGRA allows the Gates foundation unprecedented influence not only in setting the national food and agricultural policies of many African governments, but in the agenda-setting of continental agreements (like NEPAD), multilateral development institutions (e.g. FAO), the strategies of agricultural research centers (e.g. WARDA), and the political economic re-structuring of Africa’s food systems in general. The Alliance for a Green Revolution for Africa is the Gates’ Foundations bold foray into big philanthropy’s latest incarnation: philanthro-capitalism.
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  • A logical extension of current of neo-liberal hegemony, philanthro-capitalism sees unregulated markets not only as engines for creating wealth, but as the ultimate drivers of social change. In this view, governments are too bureaucratic and corrupt, and social movements too unruly and inefficient. Only the market can save us from… well, the market.
Arabica Robusta

Pambazuka - Land grabs: Africa's new 'resource curse'? - 0 views

  • In Madagascar, a 99-year lease on 3.2 million acres of land – 50 per cent of Madagascar’s arable land, granted to multinational Daewoo ‘ensuring food security’ for South Korea, lead to a coup. ‘In the constitution, it is stipulated that Madagascar’s land is neither for sale nor for rent, so the agreement with Daewoo is cancelled,’ said current president Andry Rajoelina, a baby-faced former DJ, backed by the army – and allegedly, the majority of Malagasys, 70 per cent of whom depend on farmland for income. ‘One of the biggest problems for farmers in Madagascar is land ownership, and we think it’s unfair for the government to be selling or leasing land to foreigners when local farmers do not have enough land,’ an official from Madagascar’s Farmer’s Confederation revealed to Reuters.
  • The mentality of ‘grabbers’ could not be more different. ‘We are not farmers…’ stated an official from SLC Agricola, Brazil’s largest ‘farm’ corporation. ‘The same way you have shoemakers and computer manufacturers, we produce agricultural commodities.’
  • But with Africa losing an estimated US$148 billion in development finance each year, 60 per cent as a result of multinational mispricing, in addition to the direct servicing of odious debts – (amounting to a global figure of US$560 billion per annum of an outstanding US$2.9 trillion), little or no rents derived from the liquidation of exhaustible resources is redistributed in intangible capital. This is precisely because across Africa citizens are not required to finance the state budget – as occurs in high-income countries through intangible capital – they lack the political representation necessary to influence policies and usurped power structures.
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  • The terms differ from country to country, with the bulk of Ghana’s leased land allocated for export, in contrast to Ethiopia’s mixed status, but the issue remains one of control and exploitation, whether it is over local food monopolies or exported crops.
  • over 100 known specialised land funds and investments firms have embarked on ‘private sector’ land grabs, including well-known entities such as Morgan Stanley. Facilitating this process is the International Finance Corporation (IFC), the private sector arm of the World Bank group, ensuring for investors the ‘enabling environments’ and positive ‘investment climates’ required for the extractive industries, such as repatriation of profits and tax ‘competition’. From 1991-2002, deregulation proposed by IFIs composed 95 per cent of changes implemented in host countries.
  • development finance siphoned from Africa, whether through the extractive industries, or land grabs, are unlikely to be revealed as the IMF scrapped mandatory information exchange. Global watchdogs, such as the Financial Action Task Force (FATF) remained beholden to high-income nations as a ‘subsidiary’ unit in the Organisation of Economic Co-operation and Development (OECD). Meanwhile, the International Accounting Standard Board (IASB), founded and finance by the ‘big four’ accounting firms – maintaining units in secrecy jurisdictions such as the Cayman Islands – prefers multinationals to self-regulate trade via arms length transfer. What this effectively does is enable multinationals, conducting 60 per cent of global trade within rather than between corporations, to determine the future of entire continents such as Africa, where primary commodities – extracted by corporations, account for 80 per cent of exports.
  • Studies by the International Institute for Environment and Development (IIED) revealed, ‘Many countries do not have sufficient mechanisms to protect local rights and take account of local interests, livelihoods, and welfare. Moreover, local communities are rarely adequately informed about the land concessions that are made to private companies. Insecure local land rights, inaccessible registration procedures, vaguely defined productive use requirements, legislative gaps, and other factors all too often undermine the position of local people vis-à-vis international actors.’[1]
Arabica Robusta

From Food Crisis to Food Sovereignty: The Challenge of Social Movements | Books | AlterNet - 0 views

  • Neoliberal retrenchment has met growing resistance by those most affected by the crisis—the world’s smallholder farmers.
  • Clashes and declarations of protest at recent summits in Rome, Hokkaido, and Madrid, the growing public resistance to the industrial agrifood complex, and the rise, spread, and political convergence of movements for agroecology, land reform, food justice, and food sovereignty, all indicate that the food crisis has become the focal point in a class struggle over the future of our food systems.
  • The contradiction of increasing hunger in the midst of wealth and abundance sparked food riots, not seen for many decades. Protests in Mexico, Morocco, Mauritania, Senegal, Indonesia, Burkina Faso, Cameroon, Yemen, Egypt, Haiti, and twenty other countries were sparked by skyrocketing food prices.
Arabica Robusta

Pambazuka - Successful African alternatives to corporate 'green revolutions' - 0 views

  • AGRA proposes exactly the kind of agriculture the panel of agricultural experts (from South Africa, Nigeria, Uganda, Morocco, Brazil, Mexico, Japan, China and more) rejected: Monoculture of one or two crops with the goal of increasing yields through the high use of fossil fuels, chemicals (fertilisers, pesticides) and biotechnology (patented genetically modified seeds).
  • As the demand for agrofuels seems to be insatiable, global corporations are noticing Africa for its extensive land masses, while not seeing the hungry. Calling Africa the ‘green OPEC’, they assert that 15 countries in Africa have a total combined land area greater than all of India ‘available’ for agrofuel production, not bothering to explain what ‘available land’ means in the context of a food deficit continent.[2]
  • the amount of plant material needed is massive. Lester Brown offers the comparison that the amount of grain required to fill the 90-litre petrol tank of a 4 × 4 vehicle once with maize ethanol could feed one person for a year. The grain it takes to fill the tank every two weeks over a year would feed 26 people.[3]
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  • Exporting crops for overseas consumption while Africans go hungry is a historical pattern all too familiar on the continent. It is certainly not the hope of 21st century African agriculture.
  • Both Namibia and South Africa are moving towards expropriation of land as a necessary means to correct this economic apartheid. Southern Africa is learning from the negative experience of land grabs in Zimbabwe, yet the commodity market approach can be similarly inequitable and destructive of livelihoods.
  • ‘Agroecology [sustainable mixed cropping] is a knowledge-intensive approach. It requires public policies supporting agricultural research and participative extension services. States and donors have a key role to play here. Private companies will not invest time and money in practices that cannot be rewarded by patents and which don’t open markets for chemical products or improved seeds.’[7]
  • There are about 18 recognised farming systems in Africa that can be grouped as a maize-dominated system, a cereal/root crop system, a root crop system and an agro-pastoral millet/sorghum system, all within overall mixed cropping. Part of Africa's food heritage, this genetic wealth offers important contributions towards making Africa a well-nourished continent.
  • Stories of stolen genetic treasures echo across the continent. Like traditional story tellers, when a botanist or agronomist ends his or her account of the latest theft, another joins in to give yet another account, often in voices of anguish and despair.
  • Today, the North American Tuli Association promotes the breed as follows: ‘NATA intends to expand their activities by spreading the benefits of the Tuli cattle to many countries within the Western hemisphere….the Tuli breed can provide the missing link to bridge the gap in cattle genetics, the gap being adaptation to heat and nutritional stress combined with carcass merit.’[10] Neither the government of Zimbabwe nor the foreign cattle associations consulted with the local communities or recognised their contribution in any way. NATA has even usurped the name of ‘tuli.’
  • A major discussion in the process of domesticating farmers' rights will be determining the relationship between individual rights of private property and social rights of farmers.
  • The WTO gives no recognition to social rights, only to private property rights, while the CBD, the ITPGRFA and the AU Model Legislation all recognise the rights of groups (farmers and communities) as equal to those of individuals (persons and corporations).
  • The AU model legislation also directly addresses the issue of biopiracy, such as the Tuli cattle case, by adopting the CBD principle of prior informed consent (PIC)
  • Because the wealth of the existing biodiversity is the basis for the future of agricultural Africa, it is essential that those who care about this wealth, and work toward improving its potential for use, are acknowledged.
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