Transcript IF10Unit4_PPTGlobalAgribusiness.ppt

Global Agribusiness
Lecture 3-2
The Journey Of A Tomato
• Solanum esculentum
• Grown in California,
Florida, Ontario
• Transported worldwide, often as
ketchup or tomato
sauce
Journey of a Tomato
• Fresh tomatoes
hand picked (about
1 million tons-US
total)
• Hand-picking pays
between $7500 and
$10000 US per
year, often
piecework
Tomato Processing
• Processed tomatoes
picked by machine
(about 7 million tonsUS total)
Tomato Processing
Processing Tomatoes
Tomato
Processing
Market Domination
• Nestle, Cargill, Monsanto
• Seeds, Chemicals, Crop varieties
• Top 3 seed companies control 20% of
total seed trade
• Top 10 agrochemical companies control
91% of market
• Cargill and Continental control 2/3 of
world grain trade
Agricultural Subsidies
• $12 billion in subsidies
to US farms in 2002
• Cargill Intl. got $10
million!
• US support= 29% of
value of farm
production; Canada=
9%
• Nevertheless: Ontario
farm subsidies= $844
million/year
Waste
Huge Farms
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•
Number of farms is decreasing
Average farm size is increasing
In Canada: 276, 548 farms (1996)
Number of farms decreased by 18.3% since
1976
• Size has increased by 22% (average size 608 acres)
Problems For Growers
• Oversupply: leads to lower prices
• Trade dumping from foreign (US) markets
• Disease outbreaks
Key Features of Global
Agribusiness
• Distancing
• Profit motive
• Exports
• Monopolies
• Crops are commodities
Key Features of Global
Agribusiness
• Uniformity
• Processing
• Specialization
• Control of nature
• Intellectual property
control
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