THIRD WORLD NETWORK INFORMATION SERVICE ON SUSTAINABLE AGRICULTURE 

Dear Friends and Colleagues

Curbing Corporate Domination of the Food System

This article examines the implications of corporate power in the global seed and agrochemical industry which has become more consolidated in recent years, namely, Bayer (which acquired Monsanto in 2018), Corteva Agriscience (Dow-Dupont merger of 2015), ChemChina-Syngenta (2016) and BASF. In 2018, these top four firms controlled around 70% of the global pesticides market and around 60% of the global seed market.

There are multiple ways in which concentrated firms can exert power—both directly and indirectly—that matter for food system outcomes: by shaping markets, by shaping technology and innovation agendas, and by shaping policy and governance frameworks.

Concentration can impact seed prices and limit choices for farmers through weakened competition that impedes innovation, intellectual property protection restrictions and technological lock-ins. Concentrated firms are able to exert political influence through ‘revolving doors’ between industry and government and ‘structural power’ through being big employers. They also often sponsor university-based research that serves their interests.

Policies to rein in corporate power in food systems will require efforts on multiple fronts. Some starting points are recommended:

• Stronger and more consistently applied competition policies along with more international coordination are needed to ensure that a broader range of potential impacts of concentration are taken into account to protect public interests in all countries.
• Governments should commit to more public sector support for diverse food systems including plant-breeding programmes and public research on diverse, sustainable and widely accessible production methods such as agroecology. Support a production, processing and distribution infrastructure that benefits small and medium-sized enterprises to promote diversity, sustainability and innovation all along food supply chains.
• Institute stronger policies to rein in excessive corporate influence over regulatory policies, scientific research and public discourse. Stricter measures requiring greater transparency in the scientific, policy and regulatory spheres, as well as a more strictly enforced waiting period between lobbying and government employment, would help reduce conflicts of interest. Create dedicated spaces for policymakers to engage in a meaningful way with the voices of food producers and civil society and prioritizing independent science to inform policymaking decisions. Establish and enforce rights frameworks for farmers and food system workers, and uphold the right to food for all citizens.

With best wishes,

Third World Network
131 Jalan Macalister
10400 Penang
Malaysia
Email: twn@twnetwork.org
Websites: http://www.twn.my/and http://www.biosafety-info.net/
To subscribe to other TWN information services: www.twnnews.net

—————————————————————————————————————-

THE PROBLEM WITH GROWING CORPORATE CONCENTRATION AND POWER IN THE GLOBAL FOOD SYSTEM

Clapp, Jennifer
Nature Food, 2(6), 404-408.
https://doi.org/10.1038/s43016-021-00297-7
https://www.nature.com/articles/s43016-021-00297-7
June 2021

Abstract

What are the potential consequences when a relatively small number of large firms come to dominate markets within the global food system? This Perspective examines the implications of corporate concentration and power in the global seed and agrochemical industry, a sector that has become more consolidated in recent years. It outlines the pathways via which concentrated firms in this sector have the potential to exert power in food systems more broadly—both directly and indirectly—in ways that matter for food system outcomes. Specifically, concentrated firms can shape markets, shape technology and innovation agendas, and shape policy and governance frameworks. This Perspective makes the case that a range of measures are needed to ensure that corporate concentration and power do not undermine key goals for food systems, such as equitable livelihoods, sustainability and broad-based participation in food system governance. These include measures to strengthen competition policies, to bolster public sector support for diverse food systems, and to curb corporate influence in the policy process.