The Political Economy of Food in Developed Economies Is there more than one route to food security?

Transcription

1 The Political Economy of Food in Developed Economies Is there more than one route to food security? Brigit Busicchia - Macquarie University Sydney Australia 2013

2 An Integrated Approach to the Food System Food Utilisation Food Access Sustainability of Food Production

3 Unsustainable Farming Population Growth Intensive Farming Sustainability of Food Production + Climate Change Land-Use Planning Loss of Productivity Increase use of Inputs Decline farming community

4 AUSTRALIA Non-subsidised agriculture within a free trade world (since 1970s when UK joined EU). Neo-liberal logic of scale and specialisation that fosters a bio-science dynamics. Only recently (2008) did Australia give attention to environmental damage caused by agriculture. A very short electoral cycle of 3 years.

5 Australia: Multi-functionality or Environmental Stewardship? Caring for our Country Land Sector Package $1.7 b/5yr Income Support to Farmers 2013 Sustainable Farming $190 m/5 yr Targeted approach for funding Government decides what where and when 2008 Sustainable Environment $2 b/5 years Environmental Stewardship - Discrete rounds of funding for targeted areas Community grants Regional NRMs Competitive Grants Target Areas for large projects Carbon Farming Biodiversity Fund Indigenous CFI Climate change adaptation & mitigation 2012 Population: 70% in capital cities 18% intermediate 12% rural Transition Farm Family + Disaster Drought/ Floods Farmers receive less than 3% of agricultural output value in trade assistance ($1.3 b) in form of R&D, Tax concessions

6 The Australian Government Australia promotes WTO notion of environmental stewardship to counteract adverse impact of market forces on farming and rural areas. It dismisses multifunctionality as a protectionist excuse. The government recognises need for greening its agricultural policies with systemic and enduring approach to conservation and NRM. Government encourages partnership approach between governments, landowners and local communities to address environmental problems. Producers are expected to be independent of government assistance. Accordingly, food security is framed as an issue of global competitiveness, productivity, and resilience. The Australian Farmer Agriculture has lost its social significance. Distinct interest groups from rural versus agricultural. Landholders are resisting multifunctional approach: Economic and balance sheet reasons Autonomy and suspicion about government agenda Entrenched culture of productivism (seeing forest as worthless scrub and unproductive land as rubbish country (Richards, 2008) Identity, knowledge Farmers feel they no longer are the key actors in rural landscapes and that their private property rights are undermined by regulation.

7 The UK: Multifunctionality or farmland diversification? CAP 2 ND PILLAR 15% of total expenditure 750 million (2011) Market Measures 3% CAP 1 ST PILLAR 82% of total expenditure 10% to increase farm competitiveness 80% to improve environment 10% to improve rural life quality Income Support 3.3 billion Targeted Top-Down Approach: Government decides where (nationally) and what for (priorities) Direct Payments Population 71% Urban 26%Intermediate 3% Rural Source: European Commission

8 UK s variant of multifunctionality: Rural development is not agriculturally centred (since agriculture has lost its centrality in UK society) Nature conceived in terms of landscape value and as such, different functions of the land are understood. UK has replaced farm-based approach to multifunctionality by a landbased approach, with diverse functions of the land providing alternative sources of farm incomes. Distinct separation between rural and agricultural. Despite recognising the need to diversify income, no real effort to re-embed farming. No real reconfiguration of rural resources nor redefinition of rural sector Recent move from regionalisation towards a central state control of agroenvironmental measures.

9 Source: European Commission France: A multifunctional agriculture? CAP 2 ND PILLAR + STATE FUNDING RURAL DEVELOPMENT 10% Expenditure 1.3 b (2011) CAP 1 ST PILLAR Market Measures 10% Expenditure CAP 1 ST PILLAR Direct Payments 80% Expenditure 7.8 b (2011) 30% increase farm competitiveness 50% Improve environment and land management 10% Improve rural life quality Income Support Targeted Top Down Approach: Government decides where (the Region) and what (the objective/measure). Population: 36% urban 36% intermediate 28% rural 25,000/yr/farm France: 80% of subsidies go to 50% of farmers Europe: on average, 80% go to 20%

10 France and Multifunctionality In 1999, emergence of a new social contract between farmers and society: multifunctionality France views farmers as central to maintaining a healthy environment. CAP is instrumental in building equilibrium between agricultural markets and environmental services. Fostering income stability to farmer is understood as promoting soil productivity Evaluation of agroenvironmental measures has given the state more powers but also more expertise. Political weight of rural community can be partly explained by early universal suffrage giving full representation to rural community. France follows a politique of structure, meaning: Control of land-use Control of land leasing prices And control of land prices This is to foster the familybased model.

11 LANDMASS OCCUPIED BY AGRICULTURE AUS FRANCE UK 52% 56% 70% SELF SUFFICIENCY 93% High 60% PRODUCTIVITY -1.7%/yr Slightly up Slightly up FARM TRENDS Fewer farms Bigger farms NEW FARMERS ENTRY Entry rate 7% Exit rate 10% 2011 ORGANIC FARMING 1% retail value 2000 farms (2010) Fewer farms Bigger farms 25% farmers below in in 2010 Net: -2%/yr +6% land farms(2008) Fewer farms Bigger farms Ageing farmers (59) Entry rate 2% Exit rate 18% % land 5400 farms (2008) USE OF INPUTS (N P K) Constant -5% ( ) -6% ( ) INTENSIFICATION No data Extensification No clear trend

12 VISIONS FOR THE FUTURE AUSTRALIA UK FRANCE Seizing market opportunities: Foreign investment and foreign ownership of agricultural land to develop the food bowl of Asia Support biotechnology and GMO to improve productivity Reduce trade access barriers Sustainable supply of food for the UK market: Making the farming industry more competitive while protecting the environment (Defra) Lighten regulatory arrangements Family-based farming model: Multifunctionality is an expression of political will that goes beyond commodity production to environment + regional planning + social production France at cross-roads Underpinning logic is that prosperity will trickle down Optimistic analysis of the impacts of reform on farming structures, employment Under pressure from neoliberal agenda (WTO)

13 Some questions about agriculture and the environment Can multifunctionality exist in a neo-liberal context that contributes to the commodification of nature? Can the restructuring required by liberalisation ever be reconciled with sustainability? Can environmental services be provided without the input from agricultural activities? Can we challenge the idea that only industrialised agriculture is capable to feed the world?

14 2 ND DIMENSION: FOOD ACCESS AND FOOD PRICES Energy Prices Competition Environmental Degradation International markets Climate Change Food Prices Price Volatility Food Insecurity Public Health Social Inequality

15 Food Access: Food Prices and Market concentration 50% Overall Food Price Inflation for the period between 2000 and 2010 AUSTRALIA High retail concentration: 2 Supermarkets control 71% grocery retail Regulation on competition: very low 10% population access food relief Food relief: by food banks/charity organisations No contribution from governments 20% of household expenditure on food and beverage/tobacco 2010 Poverty rate: 20%* 40% 30% 20% 10% 0% AUS UK FRANCE UK High retail concentration: 4 supermarkets control 76% grocery retail Regulation on competition: very low Very few food banks and food relief conditional and limited. But very limited data available yet. FRANCE Average retail concentration: 5 supermarkets control 65% grocery retail. Regulation on competition: present About 5% population access food relief. Food relief partly financed from CAP ( 70 M) from the State, from industry, and population 16.8% of household expenditure on food and beverage/tobacco 2010 Poverty rate: 14%* 14% of household expenditure on food and beverage/tobacco 2011 Poverty Rate: 16.2%* * Poverty line being set at 60% of median average income

16 Food Access: Food Prices and Market concentration State Coordination with Industry Australia UK France No state intervention expect suppliers/retailers to agree No legislation to coordinate development of shopping malls Hunger is totally depoliticised Groceries Supplies Code of Practice since 2010 acting as mediating instrument. Bubbles of initiatives but no real effort yet. Hunger is totally depoliticised Series of legislations to regulate suppliers/retailers relationships since 1996 Legislation and land use planning at local levels

17 3 rd DIMENSION: FOOD UTILISATION AND NUTRITION Food Industry High Food Prices/ Food Insecurity Urban Planning Disconnect Nutrition & Food Waste Loss of Productivity Pressures on Healthcare Depletion of natural resources

18 FOOD UTILISATION AND NUTRITION AUSTRALIA UK FRANCE Level of urbanisation 88% 97% 72% Ratio Population Overweight and Obesity Obesity increased by 50% in past 20 years. 63% overall population (35% over + 28% obese) 25% children Obesity almost doubled in past 20 years 62% overall population (37% over + 25% obese) 30% children Has increased over the last 15 years 47% overall population (32% over + 15%obese) 10% children Food prices in rural areas are 30% more than urban Demographics of Obesity Disadvantage groups Remote areas Correlation with low income for women only Correlation with low income State Intervention Measures/Policies Australian Dietary Guidelines No Traffic Light Labelling Future National Nutrition Policy. Partnership with industry to reduce salt/fat contents Front of the pack labelling National Nutrition & Health Plan since 2001

19 Nutrition and Public Health Societies with strong traditional food system in which diet encompasses dimensions of health, culture and ecological roles (e.g. Mediterranean diets) see food, medicine and health as interrelated. Food is associated with cultural identity and well-being. Trade liberalisation and the role of TNCs, urbanisation and migration have led to the convergence towards international diets. Yet cultural factors appear to limit such convergence and help retain dietary diversity. The principle of consumer sovereignty is doubtful.

20 CONCLUSIONS Commodification of food is in question: is the logic of the market inevitable? Should the economic status dictate the quality of food on the plate? Should hunger be depoliticised? Land has been marginalised with the dynamics of capitalism and we need to refocus on the distinct dynamics of the land. Diversity is at the root to resilience. Nature capital is paramount to the sustainability of capitalism. Nature must be at the heart of our initiatives. Acceptance and support of small-scale farm holdings may show a healthy future. Existing market-based system gives incentives that drive unsustainable food production methods. The future is in the reward of sustainable farming practices rather than large size monocultures.

21 CONCLUSIONS What are we going to do in the face of food prices increases? More and more governments will be required to intervene to address externalities how will liberal market economies states deliver these interventions?