As you sit in the morning and have your daily coffee or tea and enjoy your breakfast, take a moment to think where that food came from. Odds are, it's not coming from your local farm. It comes from a handful of companies.
Three companies now account for more than 40 per cent of global coffee sales, eight companies control most of the supply of cocoa and chocolate, seven control 85 per cent of tea production, five account for 75 per cent of the world banana trade, and the largest six sugar traders account for about two-thirds of world trade, according to Fairtrade Foundation.
When a few companies have such a big piece of the pie, they will use the "buyer power" to dictate how the supply chain is run. They have the ability to marginalize smallholders, greatly limiting their ability to get decent contracts.
Source: https://en.wikipedia.org
Cocoa growers now receive 3.5 to 6 per cent of the average retail value of a chocolate bar; in the 1980s they got 18 per cent.
So, where do the government agencies step in? They don't! Basically, multinational food (and drink) companies use strategies similar to those employed by the tobacco industry to undermine public health policies. This is done by “building financial and institutional relations” with health professionals, non-governmental organizations and agencies, distorting research, and lobbying politicians to oppose health reforms.
For example, U.S. documents reveal that the Academy of Nutrition and Dietetics (“Academy”) has a record of quid pro quos with a range of food giants, owns stock in ultra-processed food companies and has received millions in contributions from producers of pop, candy, and processed foods linked to diabetes, heart disease, obesity and other health problems.
The findings are a part of a recently published peer-reviewed study that examined a trove of financial documents and internal communications obtained through a Freedom of Information Act (Foia) request.
The Academy says it as an independent voice and “trusted educational resource for consumers”. It lobbies Congress and represents and provides information to over 110,000 US dietitians who help people make decisions about which foods to eat.
Though the Academy has long received criticism for its ties to big food, the study for the first time revealed the depth of its financial ties. The Academy accepted at least $15m from corporate and organizational contributors from 2011-2017, and over $4.5m in additional funding went to the Academy’s foundation. Among the highest contributions came from companies like Nestlé, PepsiCo, Hershey, Kellogg’s, General Mills, Conagra, the National Dairy Council and the baby formula producer Abbott Nutrition.
This situation is now spiralling out of control, reaching a tipping point of "no-return". Too much power in the hands of too few companies increases the risk of exploitation in food supply chains. Producers have no choice but to sell for low prices. Consumers face a bewildering array of products on shop shelves even though their purchases benefit only a small number of brands. Unless there is government intervention, millions of small farmers are condemned to poverty. Even more, food security is at risk if farmers were to abandon their farms – because of untenable conditions. Never mind the “corrupt” independent institutions!
References:
Big food corporations work with corrupt government agencies to eliminate “small time” competition and take over the industry, Mihai Andrei, ZME Science News, 15 February 2017
Revealed: group shaping US nutrition receives millions from big food industry, Tom Perkins, The Guardian, 9 December 2022
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