Module 40: The Global System of Agriculture

Module 40: The Global System of Agriculture

Unit 5: Agriculture and Rural Land Use Patterns and Processes

  • Presentation is copyrighted and is only for use by adopters in secure classroom environments.

Learning Goals

  • 40-1 Explain the interdependence of the global supply chain and agricultural production and consumption.
  • 40-2 Explain export commodities and how they affect countries.
  • 40-3 Explain the effects of political relationships, infrastructure, and patterns of world trade on global food distribution networks.

The Interdependence of the Global Supply Chain and Agricultural Production and Consumption

  1. Global Supply Chain Definition

    • Agribusinesses organized at a global scale.
    • Encompasses all elements of growing, harvesting, processing, transporting, marketing, consuming, and disposing of food for people.

  2. Interdependence

    • Dominated by a handful of multinational corporations engaged in agribusiness controlling multiple stages of processes.
    • Example: Agribusiness producing chicken controls:
      • Mills
      • Hatcheries
      • Slaughtering plants
      • Secondary processing facilities
      • Product brands

  3. Contract Farming

    • Arrangement between an independent farmer and an agribusiness company to produce a crop.
    • Agribusiness provides all supplies needed to produce the crop in exchange for a guaranteed price and buyer.
    • About 25,000 farmers in the U.S. under contract with 30 agribusinesses; 90% of U.S. chickens raised under contract.

  4. Control in Seed Markets

    • Agribusinesses control over 80% of U.S. corn seed market, 70% of the international pesticide market, and over 60% of global proprietary seed sales.
    • Proprietary seeds are developed and owned by a company.

  5. Global Trade Growth

    • World chicken trade grew nearly 500% in the last decades of the twentieth century.
    • U.S. share of that trade doubled.

  6. Fluctuation in Agricultural Production and Consumption

    • Explore factors contributing to fluctuations in global production and consumption of agricultural goods.

Export Commodities and Their Effects on Countries

  1. Definition of Export Commodity

    • A cash crop produced for export to wealthier countries at the expense of local consumption.
    • Historical context: Seventeenth-century plantation economy producing sugarcane and coffee.

  2. Impacts on Producing Countries

    • Dependency on one or two export commodities can leave countries vulnerable to crop failures, changes in consumer tastes, or increased competition.
    • Example: Caribbean countries faced food insecurity due to a reliance on sugarcane as a dominant crop influenced by increased production in India and Brazil.
    • Negative externalities: Destruction of forests, water pollution, soil erosion, loss of soil fertility, lack of clean water.

  3. Local Control Issues

    • Farmers producing export commodities lack control over land and crop selection, hindering local food production and contributing to food insecurity.
    • Wealthier consumers in industrialized nations determine market dynamics for these commodities.

  4. Banana Republics

    • Countries dominated by foreign-owned banana companies, affecting local economies and governance.
    • Economic dependence on single export crops and foreign intervention in local politics.

Political Relationships, Infrastructure, and World Trade Effects on Global Food Distribution

  1. Political Relationships and Subsidies

    • Wealthier farmers in developed countries benefit from government subsidies, keeping their agricultural exports' prices low.
    • Smaller farmers in developing nations struggle to compete due to these low prices.
    • Definition of Subsidies: Guaranteed prices set for staple food crops.
    • Price guarantees primarily favor large agribusinesses.

  2. Famine Definition

    • Extreme scarcity of food.
    • Misconceptions about cause: Food shortages vs. international political economics leading to hunger.
    • Notable famine: The Great Leap Forward in China (1958–1961) caused 30 million deaths due to poor agricultural policy and natural disasters.

  3. Infrastructure Dependencies

    • Historical context of Indian rail systems built for export commodity transport, detrimental during famines by lifting grain prices out of reach for local populations.
    • The built infrastructure aimed at exploiting local resources rather than aiding local food needs.

  4. Neocolonialism in Agriculture

    • Economic and political strategies by which wealthier countries maintain influence over poorer ones through agricultural dependency.
    • Example scenarios where producing countries focus on cash crops controlled by foreign entities, leaving local economies vulnerable.

  5. Current Trade Patterns

    • Many developing countries increase exports but risk over-reliance on specific crops.
    • Global trade shifts with changing consumer preferences and competition influences.
    • The significance of regional trade agreements and the quest for agribusiness efficiency reinforces the dynamics of global food distribution.

  6. Reflection Questions

    • Analyze which factor (political, cultural, or economic) most significantly impacts global food distribution.

Summary and Review

  • Key Definitions:
    • Global Supply Chain: Organized agribusiness at the global scale encompassing all food-related processes.
    • Contract Farming: Farmers work under contract with agribusiness for guaranteed prices.
    • Export Commodity: Cash crops for export, limiting local food production.
    • Famine: Extreme food scarcity often driven by political factors rather than production shortfalls.
  • Important Concepts:
    • Agricultural production's interdependence with global supply chains.
    • Consequences of a reliance on single export commodities for producing nations.
    • Political and infrastructure influences in world trade affecting food distribution dynamics.