As the summer winds down, here’s a look at some of the biggest stories in food and agriculture consolidation.
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Dairy farmers in the Northeast and Midwest are dumping massive quantities of milk, as a sharp decline in exports has driven milk prices down to a seven-year low. Meanwhile, independent farmers and members of Congress say that a new USDA insurance program designed to keep struggling dairy farmers in business is failing to do the job.
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Farmers, workers, and consumers alike may soon feel the effects of further consolidation in the already concentrated industry of grocery retail. On July 22, the Federal Trade Commission approved the latest in a long series of supermarket mergers, further concentrating control over U.S. food markets in the hands of a few giant corporations.
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After months of debate, Congress in early July established a national standard for the labeling of foods that contain ingredients that have been genetically modified (GMOs). President Obama is expected to sign the bill, officially called the National Bioengineered Food Disclosure Standard.
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Perdue, one of the four biggest chicken companies in the U.S., last week announced plans to improve quality of life for their chickens and to kill them more humanely. Although the plans have largely been seen as a step forward in animal welfare, three big questions remain: how much will it cost to meet these new standards, who will foot the bill, and when exactly will the reforms happen?
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There’s a battle happening in organic farming, and it’s not about labeling or the setting of standards. In May, the Organic Trade Association submitted a revised proposal to the U.S. Department of Agriculture to impose a special tax on organic farming. Called a “checkoff,” this tax would apply to all organic farmers, handlers of organic goods, and food processors with sales over a certain threshold. According to the proposal, money collected through the tax would be used for the promotion of organic products.
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On June 14, while electing their state representatives, the citizens of North Dakota will also decide whether to open their state to corporate agriculture or to uphold historical protections of family farming.
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Bayer’s $62 billion offer to buy Monsanto is the latest in a series of proposed mega-mergers in the seed and agrochemical sectors, following ChemChina’s planned takeover of Syngenta and Dow’s merger with DuPont. These deals have raised fears of higher prices, reduced crop biodiversity, and even greater obstacles to innovation in these industries.
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Bayer's announcement that it intends to buy Monsanto, the world's largest seed producer, shocked farmers and consumers alike. The deal could have a profound -- and negative -- effect.
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“We need a moratorium here in Iowa. We’ve got too many factory farms.” That’s Adam Mason, state policy director with Iowa Citizens for Community Improvement. He’s not alone in his desire for dramatic action to be taken against the proliferation of factory farming in his state. Communities across the country are standing up against corporate, industrial farming in their towns and cities. This growing anger is in part a response to weak state and federal protection of open and competitive livestock markets.
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After largely ignoring one of the most extreme periods of concentration in U.S. history, President Obama on April 15 acknowledged that America has a monopoly problem. He did so by signing an Executive Order that pushes executive departments and agencies to use their rule-making authority to promote competition wherever possible.
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A generation ago, America’s farm and food economy was dominated by small family enterprises. Today, just four companies control 65 percent of pork slaughter, 84 percent of cattle slaughter, and 53 percent of chicken slaughter. Milk production is largely shaped by one large processor, Dean Foods, and one large cooperative, Dairy Farmers of America. Recent mergers, such as the Brussels-based Delhaize’s (Food Lion) acquisition of the Dutch company Ahold (Giant, Stop & Shop), have reduced the number of large grocers down to four. What does all this consolidation mean for our food economy?
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