Free trade leaves world food in grip of global giants
by John Vidal
Global food companies are aggravating poverty in developing countries by dominating markets, buying up seed firms and forcing down prices for staple goods including tea, coffee, milk, bananas and wheat, according to a report to be launched today.
As 50,000 people marched through Porto Alegre, in southern Brazil, to mark the opening of the annual World Social Forum on developing country issues, the report from ActionAid was set to highlight how power in the world food industry has become concentrated in a few hands.
The report will say that 30 companies now account for a third of the world’s processed food; five companies control 75% of the international grain trade; and six companies manage 75% of the global pesticide market.
It finds that two companies dominate sales of half the world’s bananas, three trade 85% of the world’s tea, and one, Wal-mart, now controls 40% of Mexico’s retail food sector. It also found that Monsanto controls 91% of the global GM seed market.
Household names including Nestlé, Monsanto, Unilever, Tesco, Wal-mart, Bayer and Cargill are all said to have expanded hugely in size, power and influence in the past decade directly because of the trade liberalisation policies being advanced by the US, Britain and other G8 countries whose leaders are meeting this week in Davos.
Full Article: guardian.co.uk