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How do subsidies affect other countries?

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Presentation on theme: "How do subsidies affect other countries?"— Presentation transcript:

1 What are the effects of world trade on food production in developing countries?
How do subsidies affect other countries? How does restricting imports affects other countries? How does consumer purchasing choice affects world trade? How can food production be made more sustainable?

2 World Food Supply Make 3 statements which describe this graph.
Index 1960=100

3 Describe the pattern shown. What issues does this raise?
Map showing % of population undernourished.

4 The Effect of Subsidies on World Trade
Developed countries protect their farmers from farmers in developing countries Farmers in developing countries –who are trying to grow the same crop – cannot produce it as cheaply as a UK farmer Farmers in developed countries like the UK get big subsidies Re order the flow chart so that it makes sense They are kept in poverty by our government’s subsidies So, food prices are lower than they really should be A subsidy is something that reduces the costs of production This means they can produce food artificially cheaply

5 The Effect of World Trade
Developed countries protect their farmers from farmers in developing countries A subsidy is something that reduces the costs of production Farmers in developed countries like the UK get big subsidies Re order the flow chart so that it makes sense This means they can produce food artificially cheaply So, food prices are lower than they really should be Farmers in developing countries –who are trying to grow the same crop – cannot produce it as cheaply as a UK farmer They are kept in poverty by our government’s subsidies

6 How do subsidies affect other countries?
In the US cotton subsidies = $4.4 billion, there are also large subsidies for soya, wheat and rice. These export subsidies make it artificially cheap for the rich countries to export some foodstuffs to developing countries e.g. In 2006 the EU dumped 5 million tonnes of surplus sugar on world markets. TASK - Create another flow chart to show the effect that this would have on farmers in developing countries. Farmers in India and Zambia receive subsidised fertiliser supplies. In some countries irrigation water is subsidised. TASK what problems would this bring?

7 How many pink and green countries can you name? What is the pattern?
Exports over 50% more agricultural products than imports Imports over 50% more agricultural products than exports

8 How does restricting imports affects other countries?
EU imposed quotas on bananas from Ecuador and Honduras in the late 1990s – a move which was ruled unfair by the World Trade Organisation – the EU had to drop their quotas for bananas. Why did the EU do this? What effect would it have on farmers in Ecuador and Honduras?

9 How does consumer purchasing choice affect world trade?
There is growing demand for high value food exports from developing countries. Can you name some of these? This is good for some farmers as it provides source of income Can you think of any potential problems with this? Deforestation and land clearance for growing cash crops Farmers reliant on one cash crop Use of chemicals can damage environment Fewer food crops for domestic market may lead to food shortages. Distances foods are transported – food miles and contribution to climate change Overgrazing, overcultivation and land pollution  loss of productivity  famine  refugee movements

10 Demand for Seasonal Foods all Year Round Jimmy’s global harvest Baby sweetcorn 9400m Red spring onions. 8800km Mange tout 6700km Sugar snap peas 8650km Runner beans 8300km Asparagus 10,000km Grapes 8900km Blueberries 11,500km Demands for foods all year round means supermarkets source products from great distances

11 The Trade Trap Cocoa Farmers in Ghana have been getting poorer while people around the world eat more chocolate and the companies selling chocolate make big profits. How fair is that? Britain charges high taxes to import processed goods (like chocolate) but low taxes to import raw materials (like cocoa) So Ghana sells Britain cocoa which means that they don’t have to pay high taxes. Poor countries produce a lot cocoa so the world price falls and Ghana can’t make much profit so Ghana can’t afford to build factories to make chocolate or pay the high chocolate taxes Click on the bar of chocolate for a clip on how cocoa farmers are exploited Click on the fair trade logo for a clip of comic relief celebrity bake off and fair trade cocoa. Go to 20 mins into the episode.

12 How can food production be made more sustainable?
Oxfam works with farmers to change global trade rules so they start to work for the poor as well as the rich Example of Oxfam campaigns: Stop rich countries dumping subsidised farm products in the developing world Stop rich countries from forcing developing countries to open their economies to agricultural imports Improve the price of coffee/bananas etc paid to small farmers= Fairtrade foods Fair Trade

13 How does fair trade make life better for cocoa farmers
How does fair trade make life better for cocoa farmers? Use the statements below to fill in the blanks on your table. Buyers weigh the beans and sometimes they are dishonest. Then they sell them to exporters. Farmers get a lower share of the price because there are lots of people in the trading chain to share with. No training or education for farmers. There is no profit. Profits are shared equally among farmers Weighed on accurate scales then the fair trade company exports the cocoa beans. Farmers get a higher share of the price for their beans. Farmers get a fixed price that doesn’t change. The price goes up and down with the world market price.

14 How can organic farming make agriculture more sustainable?
For each picture State the conventional farming method that it replaces. Explain the benefits of this technique. Describe any disadvantages of this technique.

15 How can we make agriculture more sustainable?
Match the response to the problem Careful management of irrigation Price intervention and abolish tariffs Tie Environmental Stewardship payments to habitat management and creation Provide grants for farmers markets Enforce maximum herd sizes Increase agri-environment payments for organic farming Retain cover crops Problem How it can be made more sustainable Over-reliance on artificial fertilisers that need fossil fuels in their manufacture Soil erosion from bare fields Food miles Loss of biodiversity Banana-growers in LEDCs cannot afford to grow bananas for the price MEDCs will pay Salinisation of soils Overstocking leading to soil erosion

16 How can we make farming more sustainable?


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