Tag Archives: food policy

The Real Price of Food

price

Looking back on grocery budgets for a few years , you might notice that almost all the items cost more today. Sure, prices rise with time and the weird weather impacting harvests everywhere also has a role to play, but there is another underlying factor which is at work here.  While commodities like corn or soy have historically been traded on exchanges, today the market is being changed by the entry of financial institutions and people that have no connection with the actual growing or selling of food. This type of trader deals in derivatives which are not positions on actual crops grown but some financial version of them. This means that the price of wheat, for example will not be influenced by the actual yield but speculation based on artificially created numbers. This creates much more volatility in the price of food grains than would normally be the case. The food system is already going to face the pressure of climate change, now we need to add to that an artificial and unnecessary pressure created by trading in commodity derivatives. It is precisely this type of speculation that fueled the disastrous housing bubble. That it should be permitted to function in the domain of food when nations and people are all struggling with food security is troubling.  The chances of such speculation being stopped entirely are slim but some effort for regulation and oversight is crucial. For more reading:

http://www.iatp.org/blog/201302/five-questions-for-frederick-kaufman-author-of-bet-the-farm-how-food-stopped-being-food

Click to access presspb2012d1_en.pdf

And just as I was getting ready to post , news on futures trading in turmeric! It seems that in a time of continuing global economic crisis, speculators have decided to put their bets on food and that is an ominous development.

Is the “Rice Revolution” for Real?

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This week, the media was full of reports about a “rice revolution ” in India. The trail started from the article in the Guardian, which claimed that record yields of rice had been achieved in the state of Bihar, in India, without GM or herbicides. It reported how 5 farmers decided to use the SRI system( System of Rice Intensification) and came up with unprecedented yields of 22 tonnes per hectare. Nobel Prize winning economist Prof. Stiglitz is quoted as saying this type of inspiring organic farming should be studied and replicated elsewhere.

So, first I needed to understand what SRI involves: it is a set of techniques for managing soil , water, planting conditions to increase yield ,which was first noted in Madagascar by a priest and then tried out elsewhere as well. Improving agroecological practices is crucial for the food system but can this be replicated effectively to solve the system’s inherent problems? This question is best answered by looking at the report which gives details of this effort: the farmers start off with hybrid seeds from Bayer and Syngenta, and plants in the SRI as well as regular fields receive doses of inorganic fertilizer so this rice crop cannot actually be termed “organic”. The experiment provides pesticides to the regular crop but uses cono weeding to control pests in the SRI field. More labor is required in the SRI field for careful application of water but less water is actually required for the process, also fewer seedlings are planted in the SRI field and so less labor is required on that account. So what we have a is conventional seeds with good farming practices giving encouraging results. This is not unknown, to the contrary, many advocates have been recommending such a  mix of methods rather than depending for the sake of ideology on any one particular option.

Whether the results from Bihar can be replicated over time, countries and scale to have a real impact remains to be seen and one can hope that it will be useful specially for smallholder farmers. But long before that, the waters have been muddied by people pushing agendas. It seems strange that a year’s effort from five fields is touted as proof that biotechnology is useless but years of tests and safe consumption of biotech crops are dismissed as lies. For fixing a global food system breaking down under the strain of feeding a growing population and quite unprepared to withstand the shocks of climate change, we need the calm  of the middle not the chaos of the extreme and we owe it to the planet and to our children  to make that happen.

The Race to Grab Farmland

land

“But land is land, and it’s safer than the stocks and bonds of Wall Street swindlers.” —- Eugene O’Neill, “Long Day’s  Journey Into Night

Today, though, land is not safe anymore as the increasing population, volatility of food prices and leveling off of yield is leading to a global rush to grab farmland before it runs out. Investors, agribusinesses and governments  are buying up land mostly in less developed areas where the population can be easily displaced as land records are not easily available. Some of these may be communal lands , held in trust over centuries so when they are taken over, the community is displaced and scattered and deprived of a livelihood.

Recent reports show that approximately 203 million acres of land has been acquired and the top land grabbers include the UK, the USA, China and Saudi Arabia. In Cambodia, about 55% of  the arable land is now under the control of agribusiness and foreign investors.  The investors who make these deals often make promises about providing employment to local workers or introducing new technology but these are seldom fulfilled. And what  about the actual crop that is grown? Chances are it would not be the traditional crop but one that is destined solely for export. In one case, Saudi Arabia decided to grow sorghum in Sudan, not for the Sudanese market where it is a food item, but for consumption by camels in their own country. As the decisions regarding crop choices changes, this might take food choices out of the market and exacerbate the problem of hunger in already vulnerable populations.

Last year’s drought in the US brought home the importance of water, a fact that will only become more evident as we deal with the impact of climate change. Land grabs also put this resource out of the public domain and into the hands of private investors. This presents a daunting challenge for poor rural populations depending on farming for a living. In future, they might have to pay extra for drinking and irrigation water.

How did we get here? Perhaps the first step was the morphing of agriculture into big business, the disconnect between profit and the provision of food on the table, and the second was the sad collusion of corrupt governments and predatory investors.This trend toward land grabs poses a grave challenge to food and livelihood security in the countries and communities where it occurs and also impacts what people elsewhere can put on their plates and how much they have to pay for it.

What Should Tomatoes Cost?

tom

In keeping with my resolution to cook and eat in season, I have been trying to limit my tomato purchases. Still, I find myself gazing longingly at the piles of tomatoes at the grocery store. The price sticker shows the same price as it did over the summer. This puzzles me: should they not cost more as they are not in season? What determines the price of tomatoes anyway? It would include the cost of resources: seeds, water, fertilizers, labor, to start with. If any of these sees a rise in prices, tomatoes will cost more as well. So far land and water have not been an issue in the Unites States but with rising population and climate change these resources are the source of tension in many parts of the world. Farmland grabbing is now  a major phenomenon on several continents.

Cheap labor has also helped to keep food prices low but as countries like Mexico improve the standards of living, the flow of migrant labor will slow down. Will there be enough people to meet the demand for farm labor in America? Farm work is hard and the wages are very low. One way to resolve this would be to ensure a fair wage for farm workers, this might induce some current unemployed workers to move into this sector. This would make the food system better by ensuring that it is just and that we are not in the position of watching fruit rot on trees as there is no labor to harvest them while children go to bed hungry.

A Time to Reflect

whg

This week something rare happened in the world. Something that is rare  not just in the world of food, but in our lives in general. Mark Lynas, best known for his environmental work, announced that his anti-GMO position has been a mistake. He said that once he had actually read the research and investigated for himself he concluded that food policy should include genetic modification of crops. This is really rare: reflection on a position and the recognition in public that the position was a mistake and changed.

Most of the coverage on GMOs is negative and is often presented in a way that stirs fear in the minds of consumers, the most recent example being the Seralini rat study. Most of us also do not have the time to read up on the scientific research ourselves, but it does not follow that a technology that is difficult to access is dangerous. There is overwhelming evidence to support the case that GMOs are safe to use. I present a link here and will be happy to provide more in case you wish to research further.

The debate on this issue will continue but, (as has been noted here, and also here, and here) at least it can be conducted in a framework of facts, logic and reason rather than fear.

 

 

Wishlist for a New Food System

gift

The din around the fiscal cliff grows louder every day, perhaps it is time to raise our voices to ask an important question: what happened to the  Farm Bill?  There has been some debate about the food stamp program or debate on genetic modification of crops but what if we resolved to start over, from a blank sheet and set up the food system that would benefit both producers and consumers and be prepared for dealing with climate change. Here are some of the things on my wish list for a better food system:

1. Better food choices at home:  while the awareness about eating “local” is  laudable , everything cannot be grown locally so if we find ourselves buying “local” tomatoes while stocking up on snow shovels, it means that we are buying produce that requires greater resources  because it is being produced out of season. Instead, let us try to eat in season, experiment with produce that actually grows in this season and expand our culinary abilities. Also, if a food producer has to sell only locally they might either not be able to meet demand (in which case  we would have to go without) or is left with a surplus which does not sell and he cannot ship it elsewhere because of the insistence on local food. Most of us in the food debate consider the consumer’s point of view. Let us also hear what the farmer thinks.

2. Change agricultural practices: adapting to climate change is not just about producing food under a different set of weather conditions, it should also be about using better farm practices like growing trees on farms to prevent soil erosion and sequester carbon, preserving biodiversity, green manure among an array of  possibilities.

3. A  fair food system: let us recognize the hard work that goes into producing our food;  long hours in all kinds of inclement weather often involving hazardous chemicals and equipment. The number of people ready to do this is small and yet we do little to bring in those who are ready to work in this area. We need to provide a decent life and dignity of work for immigrant workers on American farms.

And when we go to a restaurant and are happy to see that the food is “local” and “sustainable” and the chef has so many stars, let us also think about the restaurant worker. If you want to know if your server or cook is being paid a fair wage or get paid sick leave, there is now an app for that!   

4. Renew rural life: when it is openly stated that there is a disconnect between urban and rural communities with the latter being isolated and cut off from the mainstream, it is crucial to take action. Farmers today are older and fewer in number than before and as they become less able to farm the land, farms may be sold off to urban property developers or be purchased by large farms. To create a vibrant farm sector, it should be made easier for younger people to farm, offering financial aid or improving infrastructure where needed.

5. Plate and Planet:  every time we make a food choice let us think not just of how it will be on our plate but how it will impact the planet.  A recent study shows how yields of major crops are falling, and preparedness to deal with climate change is hardly robust so when we push a certain technology or practice, let us consider the global situation as well. Changing tastes in America might lead to positive change here but global hunger and access to food should also be considered.

And, finally, in this, as in other debates, let us be civil with those who disagree. Perhaps this wish list will remain just that: wishes, but can we at least resolve to stop name calling on Internet discussion forums because someone disagrees with us on a point of policy? We are all people,  no one is a “shill”.

Wal Mart is Coming to India

veg market

Recently the Indian government announced that foreign investment would be allowed in the retail sector, and, after some debate, the relevant legislation was passed by the Parliament and is now the law of the land. This means that  stores like Wal Mart , IKEA and other supermarket chains will start operations in India. What does this mean for Indians particularly with regard to food? There is reason to believe that farmers would benefit as stores now start competing for their produce;  productivity gains are expected as less food is wasted due to improved refrigeration and storage and the consumer is also expected to have a more enjoyable shopping experience at, hopefully, affordable prices.

It is uncertain what the new policy will mean in terms of jobs. The jobs generated by the supermarkets would require a different skill set from those possessed by the small holder farmers and small traders who would be most vulnerable to the coming changes. And what about the little corner stores and produce stands that currently dot the landscape? Certainly, some small stores will go out of business, that is inevitable. However, in matters relating to food, emotions  are just as important as data. Many people enjoy chatting with their neighborhood store owner as they get their shopping done. They also enjoy little conveniences, like free home delivery even with small orders or some credit at the end of the month when finances are tight. For every middle class consumer who is looking forward to shopping at the supermarket, there is one whose income would not stretch that far. And going by the popularity of farmer’s markets in the US, for example, the small farmer will still have the option of setting up his wicker basket of vegetables  on the sidewalk.  And even the supermarkets might have to think about adapting to local customs: China’s indigenous grocery chain RT-Mart wins out in part because it lets customers come in and choose their fish live (it is then processed for purchase) as they have been used to doing at their neighborhood stores for centuries!

So, the outcome of this new policy is far from clear.We will be following how this change works out.

Of Looming Cliffs and Melting Ice

The last of the turkey leftovers are gone and we are now fully awake from the food coma to find, according to the incessant media coverage, that we are hanging off a cliff and in danger of plunging into catastrophe. Hopefully we can claw our way back. But while those involved in solving this do their best headless chicken act, another drama is unfolding in Doha where the climate change conference is being held. There, also, all is sound and fury and we watch in disbelief as no action emerges to tackle a challenge to the planet and the people who inhabit it. And while the debate rages on regarding the placement of the comma goes on the communique that communicates less and obfuscates more, everything that we put on the table to give thanks is threatened, yes,everything  including the wine. 

What, one wonders, would make the urgency on this matter obvious? Perhaps a video of  the melting Arctic ice that will allow ships to navigate through this area for the first time? Or perhaps they might need to consider the information in these handy charts?

Climate change is going to have a major impact on a food system that is already under pressure. How will we meet this challenge if we are going to pretend it does not even exist?

Getting Used to a Changing Climate

We may not agree on why the climate is so unstable, or who caused it , or even how to tackle it but the fact that it is happening can no longer be ignored. Yes, bad weather has been recorded in the past but all the events are now more unpredictable and destructive. Around the world, farmers are trying to deal with this new uncertainty in weather conditions. Food producers are opting to grow a different set of crops and consumers too will have to adapt their diets accordingly.

Now, considering that Congress just let the Farm Bill drop while they got on with the more important of election politics, there is a sense that putting in place policies to enable the food system to deal with climate change is going to be a difficult process. Those going in to vote next week might consider this as they choose the people who will be responsible for determining how we tackle this challenge.

 

“Is there enough planet for all of us?”

That is the question posed at the beginning of the Global Hunger Report released today by the International Food Policy Research Institute (IFPRI). The report examines the issue of hunger  framed by conditions prevalent today; such as increasing pressure on resources like land, water and energy, demographic changes pushing the planet’s population towards 9 billion by 2050, climate change and institutions and policies that are falling short of their goals.

To make the food system more sustainable, the report recommends a more efficient and careful use of resources, end to subsidies, investment in education and meeting the challenge of climate change, among others. Most of this is frequently discussed but the political will to make it happen often falls short. Everyone needs to get involved in whatever way they can to push for these changes.

The report does conclude, that,  yes, there is enough planet for us all, we just have to make smart and thoughtful choices.