This article highlights a new attempt from major business leaders to solve the problems in our food system. As you read it, consider some of the causes of the problems that the article highlights and what must be done to keep our system out of crisis. For anyone who's interested, here's the original link:
http://minnesota.publicradio.org/display/web/2011/05/04/gates-joins-ford-kellogg-to-transform-food-policy-after-unrest/?refid=0
Gates joins Ford, Kellogg to transform food policy after unrest
May 4, 2011
(Bloomberg) — Foundations supported by Bill Gates and the Ford, Kellogg and Walton families are combining to relieve stresses on the food supply that are pushing prices higher and adding to unrest around the globe.
"Food policy is too important just to be left to people in the food industry," former U.S. Agriculture Secretary Dan Glickman said today at an event in Washington to launch the so- called AGree intitiative, a long-term effort to raise farm production and smooth out price increases. "For too long, food and farm policy have been related to a narrow of range of interests," said Glickman, one of the program's leaders.
Costlier food has contributed to riots across northern Africa and the Middle East that toppled leaders in Egypt and Tunisia. Higher prices also helped drive 44 million people into poverty in the past year and another 10 million may join them should a United Nations food index rise another 10 percent, the World Bank said April 16.
In the U.S., food prices may increase by as much as 4 percent this year, the most since 2008, according to the U.S. Department of Agriculture. Panera Bread Co., a St. Louis-based restaurant chain, and Golden Valley-based General Mills Inc., the maker of Wheaties, plan to raise prices after wheat traded in Chicago soared 57 percent in the past year. McDonald's Corp. Chief Financial Officer Peter Bensen said last month that the company will probably raise prices to help counter the surge in ingredient costs.
Kraft Foods Inc., based in Northfield, Illinois, increased U.S. prices on Maxwell House and Yuban ground coffees by about 22 percent in March. Orrville, Ohio-based J.M. Smucker Co., maker of Folgers coffee, raised prices by 10 percent in February.
Tyson Foods Inc. and other meat processors have faced higher feed costs as corn and soybean prices advanced to their highest levels since 2008. Corn and soybean meal represent 42 percent of Tyson's cost of raising chicken, which made up 34 percent of its sales in 2010, according to the company.
The UN's Food and Agriculture Organization's index of 55 food commodities dropped 3 percent in March, although the FAO predicted prices would rebound to new records. Prices have rallied since late March when the USDA said domestic corn stockpiles at the start of the month fell to their lowest since 2007 and soybean inventories shrank to the smallest since 2003.
World grain production in 2010-2011 is forecast to drop 1.1 percent to 2.24 billion metric tons, the UN agency said last month. Cereal usage is estimated at 2.28 billion tons, exceeding production. The UN raised its projection for ending stockpiles by 1.7 million tons to 479 million tons.
The William and Flora Hewlett Foundation, the David and Lucile Packard Foundation, the Rockefeller Foundation and the McKnight Foundation also are backing the initiative.
Here are some discussion questions:
ReplyDelete1. While the commitments of the Gates Family and others are noble, is this a problem that can be addressed simply by private action? Is a change in government policy necessary, and could these industry leaders sway opinion in Washington to the point of progress?
2. Former US Agriculture Secretary Glickman says "Food policy is too important just to be left to the people in the food industry." Does this statement seem in contrast to recent USDA policies? What about patent policies, particulraly pertaining to GMOs? Did the US Government create these dire conditions on its own. and what would the food industry say about this statement?
1. Private action, especially from such power people will address the issue for at least the short term, but government policy changes will be necessary eventually, because even the wealthiest citizens cannot compete with government subsidies forever. Certainly these efforts will not go unnoticed though, and they may, if proven effective, influence opinions in Washington.
ReplyDelete2. Regarding patent policies, this statement seems to imply that GMO's are not doing the food industry any favors, and I do think that the U.S. government has only made the situation worse through such policies and through implementation of excessive food subsidies.
1) As Ben stated, I do think that private action is sufficient at least for the short term, and I would like it to be sufficient of the long haul if need be. I just do not like the government getting their hands in everything. No I am not an anarchist or even just a "tea-partier," but I think that the government could abuse. I think that Washington would eventually not their efforts, and hopefully they would just past regulations and laws that don't open the door for them to completely take over or screw everything up.
ReplyDelete2) I would say yes, it does contrast. The USDA wants to be able to approve things as being organic or what not if they meet certain requirements, but as was mentioned in class at one point, the USDA could be paid or benefited off in exchange for certification of some kind. Basically, the government could mislead us about the quality of the stuff they sell us. No, the government did not create these dire conditions on their own, and the food industry would probably agree that they should be left alone to decide how to handle/make/process food. But then the danger would be present of having monopolies and abuse pop up rampantly amongst the food industry.