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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

Manufacturing a Food Crisis - 0 views

  • an intriguing question escaped many observers: how on earth did Mexicans, who live in the land where corn was domesticated, become dependent on US imports in the first place?
  • The Mexican food crisis cannot be fully understood without taking into account the fact that in the years preceding the tortilla crisis, the homeland of corn had been converted to a corn-importing economy by "free market" policies promoted by the International Monetary Fund (IMF), the World Bank and Washington. The process began with the early 1980s debt crisis. One of the two largest developing-country debtors, Mexico was forced to beg for money from the Bank and IMF to service its debt to international commercial banks. The quid pro quo for a multibillion-dollar bailout was what a member of the World Bank executive board described as "unprecedented thoroughgoing interventionism" designed to eliminate high tariffs, state regulations and government support institutions, which neoliberal doctrine identified as barriers to economic efficiency. Interest payments rose from 19 percent of total government expenditures in 1982 to 57 percent in 1988, while capital expenditures dropped from an already low 19.3 percent to 4.4 percent. The contraction of government spending translated into the dismantling of state credit, government-subsidized agricultural inputs, price supports, state marketing boards and extension services. Unilateral liberalization of agricultural trade pushed by the IMF and World Bank also contributed to the destabilization of peasant producers. This blow to peasant agriculture was followed by an even larger one in 1994, when the North American Free Trade Agreement went into effect. Although NAFTA had a fifteen-year phaseout of tariff protection for agricultural products, including corn, highly subsidized US corn quickly flooded in, reducing prices by half and plunging the corn sector into chronic crisis. Largely as a result of this agreement, Mexico's status as a net food importer has now been firmly established.
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    an intriguing question escaped many observers: how on earth did Mexicans, who live in the land where corn was domesticated, become dependent on US imports in the first place? * Related * Also By * Haiti on the 'Death Plan' Subscribe Globalization Reed Lindsay: Protesters decry high food prices--and the savage cost of "free trade" agreements. * Manufacturing a Food Crisis Agriculture Walden Bello: How "free trade" is destroying Third World agriculture--and who's fighting back. * The World Food Crisis Globalization John Nichols: We must rein in the global food giants who reap profits at the expense of the planet and the poor. * Democratizing Capital Globalization Sherle R. Schwenninger: New Deal progressives believed the economy should exist to serve society, not the other way around. * Milk Wars Agriculture David E. Gumpert: As struggling dairy farmers seek profits by responding to rising consumer demand for raw milk, regulators are taking a hard line. * Banana Kings Agriculture Emily Biuso: The history of banana cultivation is rife with labor and environmental abuse, corporate skulduggery and genetic experiments gone awry. * The Big Yam China John Feffer: Chinese hearts, minds and pocketbooks get a lot of attention from the Eastern and Western consumer markets. » More * Manufacturing a Food Crisis Agriculture Walden Bello: How "free trade" is destroying Third World agriculture--and who's fighting back. * Microcredit, Macro Issues Peace Activism Walden Bello: The Swedish Academy bestowed this year's Nobel Peace Prize to Muhammad Yunus, the father of microcredit. It's easy to believe Yunus's low-interest loans to the poor are a silver bullet against global economic injustice. But it's not that simple. * Letter From the Philippines Su
Arabica Robusta

TRADE: UNCTAD "Forgets" Real Risks Faced by African Farmers - IPS ipsnews.net - 0 views

  • "The greatest enemies of the small African farmers are the agro-industrial sector; unsteady prices for food at the world markets caused by speculation; and so-called free trade agreements," Hoering told IPS.
  • "All these factors drive agriculture at the local and the global level in the opposite direction as the one the UNCTAD calls for – towards monocultures, and towards more private seed patents and other expensive farming inputs."
  • In a joint report, the German bureaux of the humanitarian organisations Oxfam and Food First Information and Action Network (FIAN) complained that three years after the start of the world food crisis, "the agro-industrial sector (in the industrialised countries), with the help of governments, continues to powerfully push the liberalisation of international food markets and the acceptance of genetically modified agriculture (GMA)." The survey, titled "Grenzenlos und billig" ("Borderless and cheap"), shows that the food industry in the developed countries uses the stalemate in the international trade negotiations to advance bilateral trade agreements with the developing countries in order to gain access to new markets for their food goods.
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  • "Instead of promoting food export (towards developing countries), the industrialised world should be supporting fair trade," Marita Wiggerthale, expert on agriculture at Oxfam in Germany, told IPS.
Arabica Robusta

[Europe Solidaire Sans Frontières] Make Fair Trade? Oxfam and Free Trade (a d... - 0 views

  • the market access focus does, as Food First noted in its response to the Oxfam Report, promote the paradigm of export-oriented growth, since it is monopolistic export agricultural interests that will be the main beneficiaries of greater agricultural market access to northern markets. Even in the case of staple foods like rice and corn, it is not small farmers that benefit but big middlemen. A focus on market access for agricultural products from the South in the North will also increase pressures on developing countries to open up their markets as the quid pro quo for the accelerated opening of markets in the North. Thus, this strategy simply undermines the effort of many small-holder-based agrarian movements in the South to reorient production from export agriculture based on big landed and corporate interests to small-farmer based production systems producing principally for the local market and protected by tariffs and quotas from unfair competition by subsidized products dumped by the Northern countries.
    • Arabica Robusta
       
      Bello's argument is very important for debating which is better: organic, local, or fair trade agricultural products.
Arabica Robusta

Fair Trade or food miles? « Brussels Development Briefings - 0 views

  • The food miles debate is increasing the demand for local foods, which could become a threat to air freighted Fair Trade products.
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

New report: Governments must protect land, food systems as trade liberalization acceler... - 0 views

  • It’s not that investment in agriculture is a bad thing. Indeed, it’s sorely needed. But unless we have the conversation about what kind of investment, in what kind of agriculture, and in whose interests, then the investment does more harm than good. Land grabs, as the label implies, have been overwhelmingly negative. They are associated with weak institutional capacity (and sometimes corruption) in the recipient country governments, as well as authoritarian governments in the investors’ home countries, making it hard to bring pressure there for better practices. The communities whose land is leased or bought are not adequately protected.
Anuj Singh

Connecting Global food and agriculture Suppliers and Buyers with Indian supplier - 1 views

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    Connecting Global Buyers with Indian Suppliers foodindiamart.com is the First and Exclusive and the largest online B2B Web portal catering to the Food Industry and trade exclusively for global buyers planning to source products and services from India. The portal has listings of manufacturers, sup
Arabica Robusta

ICTSD * US Attempt to Defund Brazil Cotton Institute May Reignite Trade Tensions - 0 views

  • The US$147.3 million annual payments were part of an agreement between the two countries that meant to hold Brazil back from imposing US$830 million in WTO-authorised countermeasures.
Arabica Robusta

Remarks to the World Food Prize Panel on "Stakeholders & synergies: Socio-economic dime... - 0 views

  • Unfortunately, the power of these tools has been blunted. It has been blunted because science—which at its most basic is the careful and systematic study of the world around us, and the consistent testing of our ideas against reality—this wonderful and powerful process has been narrowed too often in discussions of food to mean technology. Technology is but one way to use science; it is only the tip of one particular tool that can be found in the powerful toolbox that is science.
  • Scientifically, these are two different things. We know that what is produced is not the same as how much actually goes to become food for people[1], but too often we forget this. Luckily, this is a place where the toolbox of science can help us, but only if we open it wider to use all of the tools—including social sciences like sociology, anthropology, ecological economics and political ecology.[2]
  • in India, as in many other places, this is tied to the legacies of monoculture, cash crops, and a lack of support for smallholder farmers, household equality, especially gender equality, and agrobiodiversity.[6]
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  • We’ve consistently seen that smallholder farmers very often produce more per unit area than larger farmers. Indeed, the observation is so common that it has been formally named the Inverse Relationship between Farm Size and Productivity.
  • I think the same type of skepticism has quite often accompanied new innovations and new ideas. Skepticism, for example, about the usefulness of biotechnology, should not and has not stopped investigation of how it might be used.
  • We have to be brave enough to ask ourselves, especially about this Inverse Relationship and its implications, whether we may need to move away from large farms and invest more heavily in small farms.[7] We have to ask ourselves if our skepticism may reflect certain biases or a reluctance to engage against the current trends of agricultural consolidation—or whether it reflects the empirical reality, where this relationship is seen, again and again[8].
  • Too often, the diverse crops that smallholders rely on for stability, resilience, and nutritional diversity are defined as “women’s crops.” Traditional crops, and the fact that often they cannot easily be made into large-scale monocultures, can be both a strength and a weakness.
  • Well, estimates put the value of unmarketed ecosystem services at three times the size of the nominal world economic size.
  • And those farmers, especially larger-scale farmers, who make the rational decision to focus on producing only what they’re paid for—just making one crop, and a lot of it—are simply following a rational response in narrowing diversity, separating crops and livestock, and using energy-intensive and unsustainable levels of inputs.
  • We need to keep realizing that science does not simply mean production, and that production does not at all mean food security.
  • So if I am to conclude with one message, it is for us to remember that science is a powerful set of tools, but to use it we must learn about how to use all of its tools. Social, natural and technological—and we must expressly and purposefully use them to support small farmers, especially women farmers, and must never let “social” approaches be the second step in our conversations about feeding the world, but always—in line with the science—be at the forefront of our considerations.
Arabica Robusta

AfricaFiles | Responsibly destroying the world's peasantry? - 0 views

  • It has been several years since private investors and states began buying and leasing millions of hectares of farmland worldwide in order to secure their domestic supply of food, raw commodities, and biofuels, or to get subsidies for carbon storage through plantations.
  • All too often, notions such as "reserve agricultural land," or "idle land," are manipulated out of existence, sometimes being used to designate land on which many livelihoods depend, and that is subject to long-standing customary rights. The requirement that evictions take place only for a valid "public purpose," with fair compensation, and following consultation of those affected, is honoured more in the breach than in the observance.
  • what is required is to insist that governments comply fully with their human rights obligations, including the right to food, the right of all peoples to freely dispose of their natural wealth and resources, and the right not to be deprived of the means of subsistence.
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  • Because the principles ignore human rights, they neglect the essential dimension of accountability. There is also a clear tension between ceding land to investors for the creation of large plantations, and the objective of redistributing land and ensuring more equitable access to it.
  • It should come as no wonder that smallholders and agricultural labourers represent a combined 70% of those who are unable to feed themselves today.
  • Smallholders, by contrast, produce at a higher cost. They are often very productive by hectare, since they maximize the use of the soil, and achieve the best complementary use of plants and animals. But the form of agriculture that they practice, which relies less on external inputs and mechanization, is highly labour-intensive. If smallholders compete in the same markets as the large farms, they lose. Yet they render invaluable services, in terms of preservation of agro- and biodiversity, local communities' resilience to price shocks or weather-related events, and environmental conservation. The arrival of large-scale investment in agriculture will alter the relationship between these worlds of farming. It will exacerbate highly unequal competition. And it could cause massive social disruptions in the world's rural areas.
Arabica Robusta

Pambazuka News - 0 views

  • there are five basic guidelines, or principles, that must form the basis of any food policy.
  • The Principle of food sovereignty.
  • The Principle of priority of food over export crops produced by small farms sustained by state provision of the necessary infrastructure of financial credit, water, energy, extension service, transport, storage, marketing, and insurance against crop failures due to climate changes or other unforeseen circumstances.
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  • The Principle of self-reliance and national ownership and control over the main resources for food production.
  • The Principle of food safety reserves.
  • The Principle of a fair and equitable distribution of “reserve foods” among the population during emergencies.
  • the above quite commonsensical and, we believe, reasonable principles have not been followed by many governments in the South. They have been grossly violated through five main reasons,
  • Distorted state policies on production and trade (e.g. removal of tariffs that made local producers vulnerable to imported food
  • and grab by the rich commercial farmers
  • Effective loss of control over resources of food production,
  • Donor aid dependence
  • Disruption of the infrastructure of food production (as described above) that came as a consequence of the above four factors.
  • Just 10 corporations, including Aventis, Monsanto, Pioneer and Syngenta, control one third of the $23 billion commercial seed market and 80% of the $28 billion global pesticide market.
  • In an increasingly liberalizing (globalizing) world, Transnational Corporations (TNCs) have increased their control over the supply of water, especially in the South. In many cases, private sector participation in water services has been one of the “aid conditionalities” of the so-called “donor assistance” (ODAs) from donor countries and the IMF and the World Bank. Just three companies, Veolia Environnement (formerly Vivendi Environnement), Suez Lyonnaise des Eaux and Bechtel (USA), control a majority of private water concessions globally..
  • The Social Enterprise Development (SEND) Foundation in Ghana have criticised multi-national companies that are trying, using the “opportunity” of “food crisis”, to capture African agriculture through the so-called “Green Revolution” for Africa. FoodFirst Information and Action Network (FIAN) said that peasants have been evicted in several African countries so that palm oil can be produced from forests.
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    there are five basic guidelines, or principles, that must form the basis of any food policy.
Arabica Robusta

Food | The silent tsunami | Economist.com - 0 views

  • In general, governments ought to liberalise markets, not intervene in them further. Food is riddled with state intervention at every turn, from subsidies to millers for cheap bread to bribes for farmers to leave land fallow. The upshot of such quotas, subsidies and controls is to dump all the imbalances that in another business might be smoothed out through small adjustments onto the one unregulated part of the food chain: the international market. For decades, this produced low world prices and disincentives to poor farmers. Now, the opposite is happening. As a result of yet another government distortion—this time subsidies to biofuels in the rich world—prices have gone through the roof. Governments have further exaggerated the problem by imposing export quotas and trade restrictions, raising prices again. In the past, the main argument for liberalising farming was that it would raise food prices and boost returns to farmers. Now that prices have massively overshot, the argument stands for the opposite reason: liberalisation would reduce prices, while leaving farmers with a decent living.
    • Arabica Robusta
       
      The "incentive" argument, focussed on biofuel subsidies.
Arabica Robusta

Haiti's poor driven to the edge - 0 views

  • Préval was forced to make a statement about the crisis, but his initial comments seemed a calculated slap in the face to the Haitian poor--such as his suggestion that if Haitians could afford cell phones, they should be able to afford to feed their families. Préval also chided protesters for tarnishing the image of Haiti among the international business community.
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    As the Wall Street Journal reported, "The situation in Haiti underscored some of the problems afflicting the world's poorest countries. Haiti has enough food in the marketplace to feed its populace, but prices have increased beyond the means of many of the urban poor to pay for it."
Arabica Robusta

"The oil we eat: Following the food chain back to Iraq" by Richard Manning (Harper's Ma... - 0 views

  • “In this situation, we cannot fail to be the object of envy and resentment. Our real task in the coming period is to devise a pattern of relationships which will permit us to maintain this position of disparity without positive detriment to our national security. To do so, we will have to dispense with all sentimentality and day-dreaming; and our attention will have to be concentrated everywhere on our immediate national objectives. We need not deceive ourselves that we can afford today the luxury of altruism and world-benefaction.”“The day is not far off,” Kennan concluded, “when we are going to have to deal in straight power concepts.”
  • As Kennan recognized, however, the maintenance of such a concentration of wealth often requires violent action. Agriculture is a recent human experiment. For most of human history, we lived by gathering or killing a broad variety of nature's offerings. Why humans might have traded this approach for the complexities of agriculture is an interesting and long-debated question, especially because the skeletal evidence clearly indicates that early farmers were more poorly nourished, more disease-ridden and deformed, than their hunter-gatherer contemporaries. Farming did not improve most lives. The evidence that best points to the answer, I think, lies in the difference between early agricultural villages and their pre-agricultural counterparts—the presence not just of grain but of granaries and, more tellingly, of just a few houses significantly larger and more ornate than all the others attached to those granaries. Agriculture was not so much about food as it was about the accumulation of wealth. It benefited some humans, and those people have been in charge ever since.
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