1. International Food Wars: Growing Controversies Grant T. Hammond Great Decision Program 3 February 2003

2. Overview Food Security Food Production Trade in Agricultural Commodities Subsidies Bio-Technology and Food Questions and Discussion

3. Food Security UN Food & Agriculture Organization has set minimum caloric intake at 2,350 per day World wide, there are 2,850 calories available per person per day Fifty-four (54) countries fall below the FAO minimum standards Problem is less one of production than equitable distribution within countries and among them

4. Food Security Average available caloric intake per person per day at high end— –Austria, Belgium, Greece, Luxembourg, Portugal, USA all above 3,700 –USA high at 3,772 Average available caloric intake per person per day at low end— –Afghanistan, Angola, Armenia, Central African Republic, Comoros, Congo, Kenya, Mongolia, Somalia, Tajikistan, Tanzania, Zambia all under 2,000 –Congo at 1,514

5. Food Production US is world’s largest food exporter US also largest food importer One pound of grain translates directly into one pound of food consumed as grain One pound of beef requires the equivalent of nearly ten pounds of grain Caloric intake masks cultural preferences, availability issues, distribution costs, production inputs required to produce those calories

6. Food Production How increase food production? –Trade and macroeconomic policies –Targeted food and nutrition interventions –Food price stabilization –Food aid and public works –Micro-finance for food security and nutrition –Food based Approaches for nutritional enhancement –Nutrition education and care

7. Trade in Agricultural Commodities Each country acts to protect its agriculture and gives rural populations political favors There are huge distortions in income and productivity in developed and developing world Trade is used as both a carrot and stick Tariffs, quotas, shipping & insurance provisions, negotiated reciprocities, labeling, definitions and prohibitions all used in food wars

8. Trade in Agricultural Commodities Some examples— Common Agricultural Policy (CAP) of EU used to subsidize farmers accounts for 2/3 of EU budget deficit US gives foreign aid to countries it need not if it just reduced or eliminated tariffs and quotas on its agricultural exports All politics is local and rural constituencies change least, have longest serving incumbents, hence cycle continues

9. Subsidies (Stabilization Policies) Why have subsidies? What purpose? –Maintain low food costs for consumers –Maintain high food prices for producers –Provide price stability –Keep domestic prices close to world market prices –Allow enough seasonal fluctuations for private sector to operate in market

10. Subsidies In some cases, they are carefully devised packages to dampen price fluctuations and provide reasonable profits and costs In others, they are products of political deals with little rationale save serving special interests Many farmers make more from being paid not to grow crops than from growing them Depends on perspective (local vs. national) whether this makes sense or not

11. Bio-Tech and Food Genetically modified (GM) organisms are the changing the farm into the “Pharm” Phenomenon unknown 20 years ago Started with “Green Revolution” in wheat production in India in 1960s Has progressed rapidly to a variety of crops and GM capabilities The Flavr Savr tomato in 1984 first big change

12. Bio-Tech and Food Monsanto won permission for first GM soybean in 1994 By 1996, GM crops grown commerically for soybeans, corn, squash, tomatoes, cotton, papaya By 2000, 75,000,000 acres of GM crops Insert two traits inmost: herbicide tolerance (for proprietary herbicides) and insect resistance Virtually no organism that can’t be engineered

13. Bio-Tech and Food An unfolding drama –Small farmers vs. corporate giants –Evils of corporate America –Economics of agricultural production –Creation of unknown life forms –Inevitability of progress –Carcinogenic impact of treated foods –Profits & politics vs. organic ethics

14. Bio-Tech and Food The politics and economics of GM foods Monsanto has become the world’s largest GM seed producer Patenting foods –Novelty –Utility –Inventiveness Plant breeder’s fights (PBRs) and the Union for Protection of New Varieties (UPOV) vs. Technology Use Agreements (TUAs)

15. Bio-Tech and Food Trade secrets vs. patents and TUAs The problem with TUAs –Farmers become contractor with Monsanto –They use but don’t own seeds and become sharecroppers –Much higher yields, deliver to Monsanto. –Farmer cannot keep seed for next year or sell to others –Monsanto has right to inspect future crops and test

16. Questions What are the principles which should guide government food policies? What policies should we adopt if we are to feed the world’s hungry? Should the use of GM foods be curtailed or supported and why? Who comes first--consumers, producers, the hungry, regulators, distributors?