A Question of Governance: To Protect Agribusiness Profits or the Right to Food? November 2009 Written by Molly D. Anderson for the Agribusiness Action Initiatives (AAI).

Co-Editors: Alexandra Spieldoch- IATP/AAI-North America and Myriam Vander Stichele – SOMO/AAI-Europe

About AAI

The Agribusiness Action Initiatives (AAI) is a growing international network of NGOs, activists, academic researchers, and food system experts from farm, labor, environment, consumer, church and civil society organizations. AAI is concerned by the market concentration of a hand- ful of transnational agro-food conglomerates and their inordinate power over our most basic life system: agriculture and food.

To learn more about how AAI is challenging corporate concentration and power, please visit www.agribusinessaction.org

About the Author Molly D. Anderson, PhD, Food Systems Integrity

Dr. Anderson works on science and policy for more sustainable and democratic food systems with organizations working from the local to international scales. She was a Coordinating Lead Author on the International Assessment of Agricultural Knowledge, Science & Technology for Development (North America/Europe sub-Global Report). www.agribusinessaction.org 1

3 Hunger and high food have led to massive prices public protests 2 1 , government delegates and representatives from multilateral organizations from delegates and representatives , government A Question of Governance: of Governance: A Question Agribusiness Profits Protect To to Food? or the Right and put 39 countries on FAO’s list of external or facing requiring assistance in crisis countries on FAO’s and put 39 countries unfavorable for food prospects current crops. The World Summit on Food Security is one more link in a long chain of link in a long chain Security is one more on Food Summit The World international meetings The and multilateral organizations have hunger. made to end that governments and commitments global had broad agreement which halving the in 2000, included Millennium Development Goals, in a the fewcountries, numbers ofYet despite successes by 2015. people suffering hunger from before 2000. The numbers of well since to meet this goal been on track has not world people who hungryare 1). The United (Figure have 1995-1997 rather than decreased actually since increased estimates that in 2009, 1.02 billion people and Agriculture Organization (FAO) Nations Food hungry undernourished 2)—more are worldwide (Figure 1970 and time since people than at any ofa steep worsening that even before the global crisis present economic that were conditions started at the end of 2007. INTRODUCTION 2009 In November and civil society are meeting in Rome for internationaland civil meeting in Rome the third food rapidly society are summit to address rising numbers of and expanding efforts hungry to coordinating by people (the “food crisis”) aims of the specifically, More coherent establishing more the summit include: eradicate hunger. and effective ofsystems of governance food and agriculture at national and international levels, fairly can compete ensuring that developing and that countries markets commodity in world substantial additional mobilizing sectors, in other farmer to incomes comparable are incomes public and private agreeing effective investments in agriculture and rural infrastructure, on more and change to climate to adapt quickly countries to respond and preparing ways to food crises, negativeprevent effects. Agribusiness Action Initiatives 2 decade global food production food grew,decade global onaper-capitabasis.prices even Thesharpjumpinfood go topeoplewhoneed itmost—thosewhocannot affordtobuyit.Duringthelast necessarily foodwill not of becauseincreased supplies But increasing production sufficient initself ishardly the 20 technologies that increased duringthe“Green production Revolution” andproductivity of of production for andproductivity,investment usingallmeanspossiblebutemphasizingthekinds The “solution” crisis firstproposed tothefood by many policymakersistoincreaseglobal WHO WILLBENEFITFROMPROPOSEDSOLUTIONS TO THEFOODCRISIS? seeds andwater, tosalestheendcustomer). inputs, such as fromof institutionsandactorsinvolved infood productionactivities, andsupply unequalpower system (theinterlocking throughoutfood andcapacity theglobal critical issuesof todealwith becausethesolutionspromoted meetings are inpreparatory muddledandfail grim Are leadersreadytomake real progresstoward eradicatinghunger?At present, theprospects are Figure 1.Total numberofundernourished and organizations to redistribute power from agribusinesses that currently hold disproportionate disproportionate hold currently that agribusinesses from power redistribute to organizations and 2050 to feed the richer and more urban population of 9.1billionpeopleexpectedatthatpoint. thericher andmore2050 tofeed urbanpopulationof control over food availability, access and utilization, real solutions to hunger and food insecurity are are insecurity food and hunger to solutions real utilization, and access availability, food over control not possible. not th century. TheFAO production claimed recently thatfood mustincrease 70percent by Source: FAO. 2009.StateofFoodInsecurityintheWorld (numbersinmillions)

offset by the impacts of the global economic thedownturn. offset by theimpactsof been seenhave benefits thatpoorpeople might have cereal since theirpeakinJune2008, prices fallen have reducing poorpeople’s access Althoughworld tofood. lower incomes andincreasing unemployment, which are prices combined buthigherfood with food not lack of crisis are thefood people.Immediatecausesof hungry thetotal numberof of smallholders whoare abouthalf to keep commodity prices low, mostthose hurting cereal in2008.Increasing harvest production islikely and hungerduring2007-2008occurred despitearecord Without clear changes in food system institutions institutions system food in changes clear Without Figure 2.Undernourishmentbyregion,2009 4

5

www.agribusinessaction.org 3 The food actors system 6 But agroecological methods using local resources will not provide nearly the provide will not But agroecological methods using local resources 7 the global political will to find solutions to consolidate their own power. as the key to solving the food crisis, when this approach has been central in creating that crisis. who stand to benefit most from global initiatives underway are the companies that control control companies that the initiativeswho stand to benefit most from global are underway property as intellectual such rights on seeds; sales of inputs chemical resources critical fertilizer, advantageand equipment needed to take of to wealthy high-yielding seed varieties; and retail of purchases With corporate consumers. farmland good and the developing in many countries of prevalence increasing countries, in poor farming contract and producers corporations between supply doublycontrolling stand to profit by and distribution ofcorporations poor food from in addition to the supplycountries of that food. inputs for The myth of producing modern a growing despite body and over, biotechnology as necessary over to feed is repeated the world of practices Agroecological modern long-termevidencethat illusory. biotechnology from gains are effective sustainable and cost more to develop much are with traditional plant breeding combined and implement. benefits to agribusinesscontinued investment in modern that biotechnologywould, though even better for are poor people and the planet. they While hunger and food insecurity are striking more and more people, agribusinesses are using Unequal power relationships between corporate actors and other stakeholders in the global stakeholders food actors and other corporate between relationships Unequal power within system—notably to land, and women smallholding farmers, without access poor consumers meetings and state or global world initiatives recent by groups—havethese two been reinforced of more promote foodcrisis (see Annex 1). They insecurity the financial and hunger, to address the same failed trade rather global and more neoliberal business model that emphasizes markets assessment ofthan a clear Recent and failures alleviating in past successes hunger and poverty. and supported mostly “experts” by are hunger by top-down—developed to address proposals agribusiness in a participatory involve do not the (poor lobbyists—and and hungry) way people the ostensible beneficiaries. who are Expansion of global supply chains ofWhile much through the rhetoric in global food security initiatives the is about helping smallholders, private main strategyinvestment seems to be integrating farmers into global supply Farmers raising export chains. and trade support likely more are to get much to feed countries wealthy in industrialized crops consumers is being put The forwardthan farmers markets. regional and local or for raising staple food home consumption crops retailers—will global supply traders and, increasingly, control that chains—distributors, companies who most need assistance. than the smallholders more much to benefit continue has been rising steadily markets the past decade. North during over America, Corporate control home bases of the extent Latin America are the EU and to some increasingly and consolidated raw for Without multiple agricultural markets inputs, and foodcentralized products retailing. sector of in each for and sellers crops buyers is impossible competition the food real system, Daniels Midland and Bunge (all U.S.- get fair Archer Cargill, cannot prices. and small-scale players the vast majority ofbased) control DuPont, the world; around and wheat moved corn, soybeans of and Limagrain 29 percent Syngenta has control which in seeds, Monsanto, market the world almost all of rapidlyconsolidated (with Monsanto controlling the genetically seed); and engineered only of four 60 percent firmscontrol in phosphate. world market the Agribusiness Action Initiatives 4 countries. processors, andbeverage food andretailersinindustrialized manufacturers, are food mainly and retailers by 9percent. products” by processed 10.7percent; manufacturers food) (mainly revenues by 19.3percent compared consumer with2007;“food in business. companies Beverage intheGlobal500increased their from countries developing whoseproducts keep thosecompanies andfishers farmers U.S. dollars)—astarkcontrast toincomes of listed in the top 500 (Global 500) companies Revenueworldwide. 48.8percent over 2007figuresfor companies increase inrevenues of average 31,2009),with thefiscalJanuary year ending in 2008(for by revenue industry global growing Food production wasthefastest Corporate profiteering Source: GlobalFortune500.(See Annex 2forfulllistoffoodcompaniesbysector.) Table 1.Revenuesofselected agricultural andfoodcompanies include (Table 1): Companies thatreportedlargeincreases 2008, compared inrevenue for with2007, asapalmoiltradingcompany founded in 1991. International, companiesnew skyrocketed upward: Asia’s in2008 wasWilmar group leadingagribusiness revenue, afew the lastyearwith28storesof wasinternational, addedinChinaalone.Interms itsexpansionduring company intheworld. Itdropped down tonumberthree; almostallof first timeinthree years, the Wal-Mart, global trader,U.S.-based largest wasnot the wealthiest therevenue peak.For the There wassomejockeying topof positionlastyear for atthevery employee largest suppliers of inputs are largest suppliersof are firms headquarteredinAsia.In contrast, the thedeveloping-country (5), whileallbuttwo of corporationsthe industrialized-country inthislistare America splitbetween theEU(8)andNorth country,developing hasthelargestnumber(6),followed by theU.S. (5)andtheUK(3).Byregion, foreignassets, Malaysia, a production corporations thetop25agricultural ranked by valueof Of countries where they arethese corporations based,however. are shared across thepopulations of power asresources production food become for scarcer. Thisdoesnot meanthatbenefitsfrom regions,production,Corporations indeveloping thoseinvolved infood are especially gaining 9 in food production agribusinesses was$1,268,695(2008 production infood agribusinesses 8

only locatedinindustrialized countries atpresent; andinternational per per www.agribusinessaction.org 5

Wilmar International showed more more Wilmar International showed 16 Cargill’s net earnings for the fourth Cargill’s 14 15 for most food companies, although for although most food companies, 12 (See Annex 2 for full list of food companies by sector.) (See Annex 2 for full list of food companies by 12 and anticipates strong revenues and profits in 2010. and profits revenues strong and anticipates 13 fiscal quarter of drop to $327 million, a 69 percent down were 31, ended on May 2009, which though its earnings Even for the quarter $1.05 billion during the same in the previous year. from earnings ofrecord its from “only”fullwere 16 percent year $3.33 billion, down fiscal $3.95 billion history. in its entire best year second in 2008, this was Cargill’s Figure 3. FAO food price index 2000-2008 Figure 3. FAO While many agribusinesses were reporting record profits during 2008 and into 2009, profits food prices agribusinessesWhile many reporting record were 3). (Figure rapidly rising were hunger of from numbers suffering total people the and consumers for Farmers and consumers left in the lurch Farmers Table 2. Change in profits 2007-2008 of selected agricultural and food companies 2. Change in profits 2007-2008 of selected Table and fertilizer profits. Source: Global Fortune 500 except for Cargill during the first quarterProfits remained high of 2009 In 2008, the most profitable food industries (highest profits as percentage as percentage (highest profits food industries most profitable In 2008, the among of revenue) average return on revenues; percent with an 11.9 products food consumer 500 were the Global with 2.3 percent each and food/drug and food stores, production beverages at 4.2 percent; of each Within revenues. returns on as fertilizer these industry and as well production categories, 2): reported (Table were profits some phenomenal sales, fertilizer company profits dropped. Charoen Pokphand Foods in Asia (the world’s top animal world’s feed Foods in Asia (the Pokphand Charoen dropped. fertilizer profits company of least before the acquisition largest poultry and second producer—at and shrimp producer Brazilian JBS in 2009) saw of Pride by net profit growth Pilgrim’s U.S. in the second 225 percent quarter than a six-fold increase in profits over just two years, from 2006 to 2008. Its profits in the2008. Its profits fourth 2006 to from years, just two over in profits increase than a six-fold quarter of higher than in all of fell, when global 2008, prices were commodity 2006. In the same doubled its net earnings. Foods Pokphand Charoen quarter, Agribusiness Action Initiatives 6 and self-sufficiency. economy rose 102percent. the increase incrop over prices thesametime-period;andoverall by farmers prices inthegeneral in August2009reportedthatsupermarketprices climbed by 128percent times since 1982,four 2009. tookthebenefitsfromrather thanprocessors theincreasing orfarmers, prices between 1997and types of animal products except and dairy. poultry of types and animalproducts compared withprices received oneyear earlier, withprice decreases all for dropped 18.7percent received crops inJuly for and3.3percent livestock Canadian farmers for by 20percent. However, prices inindustrialized nationcapitalsinthissurvey differences across cities. Nairobifoodprices increased by 33percent andBuenosAires increased 5percent, butmajor anoverall 2009, andfound riseof 2008andJuly between July basicfoods for the BritishBroadcasting Company tracked whatconsumers cities inseven around theworld paid Average numbersmasktremendous discrepancies between andwithincountries. For example, from more than20percent in1980. its overall ODA spendingin 2007. Thiswasdown percentIn theU.S. itwasalittleunderfive of itstotal ODA spending. Thiswasdownthan three from percent more than13percent of in1987. EU’sDevelopment Official Assistance (ODA)agriculture wasalittle more to the and domesticproduction alsodropped significantly. In2007, theshare of regional free ruraldevelopment tradeagreements. Overseas for investment and thenlocked inthrough theWorld Trade Organization(WTO) and on TariffsAgreement and trade negotiationsTrade (GATT) Uruguay Round of through advanced theGeneral shiftswere trade.Thesepolicy further for countries sector andliberalize tocut domesticspending intheagricultural and regional ondeveloping banksimposedstructuraladjustment programs Fund,World years,Over Monetary thelastthirty theInternational Bank, Global policytrends HOW CORPORATIONS EXERTCONTROLOVERTHEFOODSYSTEM prices. was estimatedtobedown 5percent in2008compared with2007,despitehighercommodity farm productionInCanada,thenetoperatingincomeaverage andtransport. for costs of gains from themarket were swallowed upbyfor inputsand inflationandhigherpricesother received theircrops higherpricesWorldwide, for in2008.However, farmers potential income government incentives. pushedby agrofuels, production higherdemandfor of producers well becauseof didespecially $59.6billion.In2008,U.S. cornandsoybeanincome 46percent above the10-year of average including government payments was$16.2billion,22.8percent above 2007,placing 2008netfarm over thesametimeperiod:-17percent inWashington, D.C., and-10percent inBrussels. In several countries,In several current prices inOctober2009exceed lastyear’s highs. people inboth ruralandurbanareas whodependonmarket purchases needs. tomeettheirfood above poor countries‐yeardeveloping remained hurting have average, theirfive highandgenerally prices andgoodDespite adropfood cereal 2008,prices ininternational in since harvests July that they charged toconsumersalthoughthiswasnot thedominanttrend. intheGlobalNorth, suggests thatsomeretailers responded todeclines incommodity prices by reducing theprices 23 19 According toareportfrom StatisticsCanadaissuedonSeptember 23,2009,prices that 21 However, U.S. prices by food theGeneralAccounting Office areportof 22 AndintheEU, arecent concluded investigation thatsupermarkets, 24 All of these shifts negatively affected local food production local affected theseshiftsnegatively Allof 20 In the U.S., estimated net farm income In the U.S., in 2008 estimated net farm 18 dropped sharply sharply 17 This www.agribusinessaction.org 7

26

25 Coca-Cola’s appropriation of appropriation Indian farmers Coca-Cola’s water from to bottle 28 Furthermore, it has interests in ethanol and biodiesel; salt; processed Furthermore, in ethanol and biodiesel; salt; processed it has interests 27 29 Vertical and horizontal integration Vertical The most successful agribusinesses in terms of during the last several years, and revenues vertical and integration. horizontal consolidated through Some of have those that are profits, in multiple food activities acquisitions, haveinterests system mergers, these companies through food, inputs, feed and sell chemical and fuel, produce partnerships. They and in addition alliances Wesfarmers in Australia has investmentsFor example, to foodservices services. and financial Seven & i in Japan foodservice and supermarkets. bridges both chemicals and in fertilizer, food and trading production Daniels Midland, the largest U.S. Archer sectors. supermarket retail in ethanol, biodiesel, food in 2008, has interests and feed revenue ingredients by and company than half more grain Cargill owns trading markets. of of the shares Corporation, Mosaic Fertilizer one of but also dominates grain the largest fertilizer in the world, companies and feedstuffs trading worldwide. and processing In this same period, agribusinessesIn this same aggressively expanded and vertical horizontal through integration of prices food, at low feed to buy commodities able and agrofuel and were companies, consumers. then sell to wealthier and processing, add value through developing countries, from of economies capture could They of scale because vast amounts of the traded, commodities stage of each paid at prices control vertical integration, the food through system and take advantage of of lack prices push low sectors) to in many oligopolies from (resulting competition the supplydown farmers to In addition, the text of chain and workers. such agreements, specific with disproportionate clauses included Agreement (CAFTA), Trade Free as the Central American signing trade agreementscountries also agree that required benefits to agribusinesses. CAFTA and environmental (benefiting investors in biotechnology),conceal protections to expand patent goods, Trade against certified Fair discriminate practices, action against illicit health data, limit legal for safeguards foodand prohibit security. inputs to food and feed manufacturing; and and risk management services financial for producers; and pork. beef, turkey and processed fresh In addition to rapid expansion into agrofuel successful agribusinesses into markets, have moved global of share Nestlé’s water was bottled water. as bottled such for products markets consumer Pure Springs, Poland Perrier, Deer Park, the brands Arrowhead, in 2008 (including 28.3 percent and Vittel). Life, San Pellegrino soft drinks first elicited protests in 2003, and led to more political struggles in late 2008. Although in 2003, and led to more protests soft drinks first elicited Coca-Cola intends to implement a “water neutral” strategy of groundwater returning as much to extraction is lowering necessarily where returns will not places be in the same India as it removes, the water table. The regulation ofThe regulation specificallyby States ofthe implementation technology, Trade the Agreementon By Intellectual Property(TRIPS), has benefited agribusinessRelated Rights granting immensely. temporary to patent holders (agribusinesses on genetic stock monopolies research that conduct to recover and technology companies and allow on seeds), ostensibly innovation to encourage farmers’ millennia rights to save seed and to benefit from and development costs, their research of agribusinesses developed by being violated. The seeds that are are plant breeding indigenous for farmers: seldom appropriate smallholder are greater have much incentives companies to on the crops rather than grown on vast acreages that are crops commodity on research conduct The privatization smallholders relywhich for and resilience. of subsistence thus plant breeding the dual globalexacerbates farming farmers with the poorest system, increasingly and countries of trade flows from polarized commoditycrops. Agribusiness Action Initiatives 8 features of contract farming. features of and sugarisproduced through contracts. rice contracts; tea ispurchased andinKenya, through farming approximately 60percentof of teaand40percent cotton andfresh milk,50percent of corporations; inVietnam90percent of soya by beanproduction transnational issourced largely throughpercent contract farming, of smaller-scale farmers tendedtoloseout. smaller-scale farmers equipment andaccess roads. topaved However, are mixed, inregions where largeandsmallfarms whohadmore supplierspreferredtosource farm assetssuchglobal asirrigation, from farmers structure, although dominatedtheagrarian income andassetsinregions where smallfarmers succeededfrom ingaining showing thelate1980stopresentevidence thatsmallfarmers found theliterature chains are mixed. supply of intoglobal Areview integration Data ontheimpactsof theirmarkets. be squeezed outof growers. Andsmaller-scaleproducers whocannot buyers meetthevolumes thatglobal needcan therisk. Asretailer power increases, contract salesmayoption for becomeassume allof theonly farmers growers specifications toachieve, ordemandthat thatare tomeetstrictquality expensive power: retailers canusethatpower toforce lower prices,disproportionate amountsof require andretailers are But contracts between between system two farmers actorswithvastly food no other markets tosellproductsbuyer exist,theability toaglobal canbebigboostinincome. thefarmer. However,livelihoods. If of from theperspective agood strategy thisisnot necessarily therecent proposals toimprove rural many of valuechains isastatedpurposeof into global smallholders intheEU. of receive—has beendebatedhotly Integration prices thatfarmers food economies of scaleinbuyinginputsandsellingproducts. economies of adding enterprises. Working organizationsorproducer through farmers’ alliances can helpreach they oftenneedtechnical assistance andbusinessservices, including assistance setting upvalue- awareness of stores’ corporate citizenship through CorporateSocial Responsibilityreports.awareness of labels;andboostingbrandimagecustomer loyalty, private through inpart building use of retailing; wholesale;Internet price-cutting andself-service campaigns; formats discounter/grocery combination such as smallerhypermarkets, formats retailers expansion;new include international concentrated, butitsconcentration hasproceeded rapidly. Strategiesusedby grocery successful valuechain tobecome theglobal highly The retail sectorhasbeenthemostrecent segmentof America andtheCaribbean. by multinationalcorporations hasspread throughContract farming Africa,Asia,Oceania, Latin made the concentration of agricultural businesses into vertically integrated corporations simpler. integrated businessesintovertically agricultural made theconcentration of countries the fast-growing intheGlobalSouth—have industrialized countries butalsosomeof of environments—especially changes innationalpolicy At important thenationallevel, National policytrends beverages purchasedbeverages homeconsumption, for up18percent from 1999. economic U.S. and recession. food In2008,store brandscomprised approximately 24percent of labelsales(brandsthatare owned byPrivate popularduringthe thestore) beenespecially have on interviews in developing countries. indeveloping on interviews recentin several organizations(CSOs),withspecific society examplesbased reportsfrom civil retailer pressure onproducers been have well documented power of Theeffects over farmers. exert andindirectly thevaluechain,more they directly As retailers insize grow andcontrol of chains are beingsqueezed out. supply integrated labelsalesmeansthatproducts not comingprivate vertically from such tightly

In Brazil, for example, 75 percent of poultry production and 35 poultry example,75percentIn Brazil,for of 32 Their role in the food chain—and particularly insetting Theirrolechain—and particularly inthefood 34 33 For farmers to participate in global valuechains, inglobal toparticipate For farmers 35 However, thesemeasures are seldom 31 However, increasing 30

www.agribusinessaction.org 9

no Unregulated commodity commodity Unregulated

39 36 U.S. corporate taxes—as a percentage of a percentage taxes—as corporate U.S. Gross 37

38 A common strategy subsidiaryA common with very is to set up a corporate in a place for low avoiding taxes Islands), then sell goods British Virgin Bermuda, Islands, the Cayman (e.g., taxes or no corporate The a loss. to record the company allows and services which subsidiary to the at high prices, without having U.S. subsidiary or services at normal prices the goods to pay market then re-sells U.S. the which charge the trademark or logo, will company for things like Or the offshore taxes. can deduct as a business expense. company federal income taxes from 1998 to 2005. These were not simply not that performed companies 2005. These were 1998 to badly from federal taxes income quarterthat year: about a of than $250 million in assets or $50 with more corporations large and 998 large companies 3,565 large U.S. In 2005 alone, paid no taxes. million in gross receipts taxes. pay did not operating in the U.S. companies foreign-owned Commodity speculation ofDeregulation has greatly markets commodity agribusinesses benefited and of Much heavilycontributed in food insecurity. to the increase the speculation the Commodity created legislation. In 2000, the U.S. has been facilitated U.S. by ModernizationFutures Act of derivatives mandated that financial 2000, which completely institutions financial government without be traded between could and investorscorporations dumped The impact was that financial oversight. ofhundreds billions of dollars (from $13 billion in 2003 to $317 billion in July into a markets commodity throwing prices, on crop 2008) into speculation a food the housing bubble burst in the U.S. bubble after price tailspin and creating looking forand investors were new markets. writes that Policy, Analyst the Institute for from Agriculture and Trade Steve Suppan, Senior Policy of regulation “weak devastatinghad volatility…has effects price extreme and markets [commodity] from price on food firmsand profit and energy For that can induce the world. security around enormously instruments are the incentive speculation and hence commodities profitable, volatility, is very of regulation high. An estimated third for traders to circumvent for all net income Goldman trades.” commodities in 2008, some $1.5 billion, came from Sachs One would expect that the public sees a hefty tax return from generous company revenues and revenues company generous the public sees a hefty expect that tax return from One would this agribusinesses is home to more other singlecountry, U.S., which than any But in the profits. 2008 released in August Office Accountability the Government A report from the case. is not offound that about two-thirds U.S. paid firms and foreign doing business in the companies U.S. Corporate influence over policymakers at national levels at national policymakers country in international and over fora where influence Corporate that this happened. has ensured negotiate representatives evasion Tax Domestic Product (GDP)—are lower than in most other industrialized countries, averaging only countries, industrialized other than in most lower (GDP)—are Domestic Product of2.2 percent as the average with 3.4 percent 2005. This compared 2000 and GDP between with all Department. Compared Treasury to the U.S. trading partners, according 30 U.S. across was tied with Cooperation and Development, the U.S. in the Organization forcountries Economic Hungary in raising the fourth amount of lowest relative tax revenue income corporate combined to GDP in 2004. trading has allowed corporate profiteering over and signals an immediate need over food prices for profiteering corporate trading has allowed regulatory reform of markets. financial Agribusiness Action Initiatives 10 American Farm BureauAmerican Farm Federation, which reported$1,840,000in2007lobbying expenses. interests are $3,560,000.Agribusiness alsopromoted intheU.S. by the year-end amendmentof and increase theirpoliticalpower. BIOreported $2,960,000inlobbying expensesin2007,witha thelargest policymakers’ opinionsthrough andmediainfluence. lobbying, Many of advertisements influencing publicand In theU.S., agendaof corporations pursuedanaggressive have Green Revolution inAfrica(AGRA). withmoney gainedfromGates Foundation, corporate formed profits,for a initiatedtheAlliance World Food Prize conference including theBill&Melinda foundations inDesMoines, Iowa. Private such astheWorldpolitical leadersinfora Economic Forum atDavos, Switzerland, andtheannual contributions. More subtly, at amassing people been wealthwho successful have also gain access to butalsothroughinvestment thepoliticalpower gainedby lobbying andcampaignfinance representative politicaldecisions. Corporatepower through isexpressed direct not only democratic, corporate power of isitsdistortion Perhaps themostinsidiousaspectof Lobbying many corporations. Partly in response, almost every agribusiness now featuresitscommitmentsmany corporations. agribusiness inresponse, Partly almostevery Practices such aspoorlabororenvironmentaltrack records publicrelations tarnished for have Corporate socialresponsibility? NEEDED SOLUTIONS environment in developing countries.environment indeveloping sovereignty social food welfare, andthe industries supersededconcerns aboutprotection of EU-based countriesdeveloping beremoved toopen markets andensure of thecompetitiveness Round.agenda vis-à-vistheDohaDevelopment Demandsfrom corporations thattariffsin large corporations ontheEU’s international to BrusselsNetwork documented theinfluence of inlobbyingCorporations are policymakersintheEUaswell. active Areportfrom the Seattle their interests. tofavor Congress membersof $1,233,205millionin2008—enoughtosway afew revenues of Foods, PublixSupermarkets, McDonald’s, Coca-ColaEnterprises).Together, thesecompanies had Safeway,Bunge, Supervalu, PepsiCo, KraftFoods, Sysco, Coca-Cola,DuPont, CHS, Deere, Tyson (Wal-Mart stores, Kroger, Costco Wholesale,Archer DanielsMidland,Target, Dow Chemical, food oragriculture their in revenue thesegainasignificantproportionof were U.S.-based; 20of the500corporations intheworld withthehighest2009revenues in theUnitedStates:153of corporations isaconcern are becausesomany Congress agricultural based Corporate lobbying of Industry Organization(BIO)toinfluence publicopinionaboutbiotechnology,Industry engineeredthat produce seedjointogetherintheBiotechnology genetically Corporation reported$307,320in2007and$690,3842008.Companies reported$760,000in2007and$800,0002008;McDonald’sUnilever Daniels Midlandreported$1,927,300in2007and$2,270,0002008; costs in2007from 11differentlobbyists and$4,700,000in2008;Archer- The Anheuser-Busch Company reported anamazing$4,860,000inlobbying attheWTO agreements international andother multilateralorganizations. companies) usedlobbyists topushtheirinterestsandthrough inCongress U.S.-based companies by revenues orprofits (andsomenon-U.S.-based 41 40

www.agribusinessaction.org 11 Yet A recent report by report by A recent 44

Mars, Incorporated (one of Incorporated Mars, the 43 42 Source: Tom Cheney - © The New Yorker Source: Tom It is tempting to conclude that voluntary Responsibility reporting and Corporate Social to conclude It is tempting 45 largest producers oflargest producers pet food, to certify intends its and chewing gum in the world) chocolate, supply the Rainforest 2020 through by cocoa Alliance. entire TerraChoice of supermarkets found than 98 percent forTerraChoice that more 4,000 products sale in U.S. of the natural and environmentally making friendly potentially were false products or misleading of and 22 percent claims, making products green had environmental labels with no inherent claims meaning. The scientific consensus A very element of encouraging wealthier by international is the recognition meetings the recent into international money agricultural must invest more that they development.countries to Corporate Social Responsibility and environmental sustainability prominently on its Web site sustainability and environmental Responsibility Social to Corporate prominently on its Web have Global Compact international annual report, and and in its UN’s as the such organizations If commitments. such to promote been established make could these promises carried out fully, announced Kraft Foods example, For quality on environmental a big impact conditions. and social its supplyin April increased 2009 that it had ofcertified the by sustainable coffee beans Rainforest and plans to invest during the next five $90 million years to last year, 50 percent by Alliance and cashew in Africa. production advance sustainable cocoa labeling are not having as much impact as the publicity about them seems to suggest. Additionally, having not impact as the publicity about them seems to suggest. Additionally, as much labeling are Responsibility commitments, Corporate Social by covered still not issues are controversial many in domestic and international as tax evasion,such and lobbying fora. advertisements to children, companies are making commitment. are general statements without much companies However, given of the lack labeling, and and accounting However, corporate in much transparency of definitions inconsistent determining industries, whether sustainability within and across actually beyond and whether the statements go are meeting their commitments companies greenwashing A 2006 study commitments is difficult. on health the 25 largestof global food of that the lack concluded companies performance industry indicators used by key suggest that Agribusiness Action Initiatives 12 The International Assessment of Agricultural Knowledge, Science Agricultural andTechnology (IAASTD) Assessmentof The International strategiesisimplemented. infood technology thecurrent pushon expand control spendingif development over andagricultural agriculture hunger andpoverty. standtoreap considerable Monsantoandother agribusinesses profits and littlepromise to showsglobal a scientificreduce biotechnology relatively consensus thatmodern it.” into sub-SaharanAfricawithoutregard tohow much hungerandpoverty mightbereduced by biotechnology from peopleandtheircircumstances. They triedtorestrict have thespread of nearly theenvironmentwhich isdivorced Somepeopleinsistonanidealvisionof to sustainability…. getting not are a “technological approach andanenvironmentalonegeared geared toboostingproductivity benefits it whom and At thelastWorld Food Prize Conference, BillGatesdecried the“ideologicalwedge” between invested is money that how of questions critical the usual” cannot reduce andpromote ensure hunger; rural livelihoods; economically, and socially decadeswillleadtodisaster.during thepastseveral that“businessas Thereportsstateclearly The IAASTDauthorsconcluded thatstaying hastaken investment onthecourse thatagricultural be considered inadditiontoeconomic are impactsasinvestments planned. environmental andsocial goals aswell aseconomic goals, andenvironmentalsocial goals must fuel (Figure willaffect inagriculture 4).Thismeansthatinvestments fiberand feed, as food, many environmentalandsocial needsbeyond serving providingmultifunctional, goods such toeliminatehunger. initiatives global TheIAASTDrecognized isinherently thatagriculture most production, production. incontrast, Agricultural of just agricultural hasbeenthefocus addition toacademicandmultilateralorganizations, considered theentiresystem andnot food thisassessment,from more than80countries andrepresenting organizationsin society civil of technology, The400+authors basedonlessonslearned. andtoexplore thefuture, options for science and inagricultural investment thelast50years of of poverty andsustainabledevelopment was initiatedby FAO andtheWorldconsequences onhunger, thefull Bankin2002toreview enough attention. enough 46 Ultimately, Gates,anideologicalwedge into alongwithAGRAare andagribusiness, driving Source: IAASTD(2009). Figure 4.Theinherentmultifunctionalityofagriculture 47

www.agribusinessaction.org 13

48 49 Finding out, first of all, why the right to food is being violated for some people and whose that right. to achieve in order need to change actions would Assessing the capacity of people whose right to food being met to fight is not for their and the capacity ofrights, meeting their obligations to not that are states or organizations then developing those capacities. strategies to build up do so, and processes. Monitoring and evaluating outcomes both Informing of programming with the recommendations international human rights bodies and mechanisms. People as key actors in their own development. actors in their own as key People in programs and policymakingParticipation a means and a goal. as both meant to serve. are the people they Strategies that empower groups, and that aim to Programs that focus disadvantaged on marginalized, and excluded these groups disparities between and others. reduce approaches. and bottom-up top-down Both and targets. Measurable goals to all stakeholders. Accountability 1) 2) 3) 4) • • • • • • • The IAASTD documented patternsThe IAASTD documented of agribusiness of increasing dominance food and networks impacts on rural livelihoodsthe consequent of IAASTD provided Additionally, trends. these to goals and environmental economic, social for better balance options would institutions that ofmeet the goals opportunities forhunger and creating sustainable livelihoods. reducing AAI recognizes the need for a mix ofAAI recognizes in this briefing policy addressed reforms not that are of In the context the food in system, power investment and tackling corporate paper. increasing Rights-based approaches explicitly recognize the power dynamics in hunger and poverty involved the power explicitlyRights-based approaches recognize of being violated to gain control people whose human rights are and allow their lives and destinies. on investment. and regulations for role the government a strong This requires Agribusiness Action Initiative (AAI) policy recommendations Rights-based approaches to agricultural of many developmentA rights-based approach complements presented the options grounded are in international and human rights standards Rights-based approaches IAASTD. by referring principles and fulfilling incorporate They protecting human rights. to respecting, directed universal, human rights are inalienable, indivisible,first to rights themselves: and interdependent programs guide how be implemented: they should principles rights-based interrelated. Second, equality be participatory and non-discrimination, must respect and inclusive, and be accountable with the rule ofand compliant set them apart steps that lead to concrete These principles law. to development: approaches other from environmentally that messages and reinforced development. sustainable IAASTD echoed The poor hunger and food debilitating insecurity, forCSOs have to overcome decades: been saying necessary to fair for access food markets, resources production; over control people need and opportunitiesknowledge for food livelihoods sustainable system in agriculture;and improved to the strategic counter national and international at the local, These needs are levels. governance ofinterests they and institutions on which food agribusiness the resources and systems to control depend as seamlessly of and to dominate global as possible, governance food agriculture. and In addition, rights-based approaches entail the following practices and perspectives: entail the following practices In addition, rights-based approaches Agribusiness Action Initiatives 14 Global governance recommended solutions: and treaties shouldbeusedasanoverarching reforms.AAIlistssome allpolicy for framework this paperproposeshumanrightsandenvironmentalcovenants thatIAASTDandinternational Corporate governance National governance • • • • • • • • • • • • • • corporations tosuegovernments agreements. intradeandinvestment dumpingpractices; removesurges andunfair provisions investor-to-state thatallow Establish traderulesthatallow countries toprotect theirdomesticmarkets from import from exploitinglow prices andunequalcompetition. thatstabilize commodity prices arrangements andpreventinternational agribusinesses recommendations. Re-regulate financial speculation in marketscommodity andmake provided by humanrightstreaties andthescientific provided framework by theIAASTD thelegalframework thatdoesnot investment support Reject private-sector-led buyer power. orabuseof therighttofood undermining food system whenthesehave the resulted in concentration indifferentsectorsof Create aUNCommissiontoexamineandreverse excessive horizontal andvertical variousorganizationsproposed toplay governing roles. nations of vulnerablepopulationsandpoor CSOsandneedsof of toparticipation most responsive in compliance withrights-basedprinciples thatstress broad TheUNisthe participation. ontheRighttoFood, Task andtheHigh-Level Rapporteur Force (HLTF) orother UNfora astrongerSupport roletheCommitteeonFood (CFS),UNSpecial for Security any kind. conducts business of obligationstorespect wherever acorporationMeet extraterritorial therighttofood standards on labor andenvironmentalprotection. production. Meetinternational full pricescosts of thatreflectto consumers the atfair Take distributeprofits along thevalue chain andprovide actiontoequitably products other stagesinthevaluechain. attheproduction netrevenue earned stageversus the valuechain, andproportionof profits along Provide andthedistribution of aboutprice transfers transparent information accountability tothepublic. with full policy,Establish democraticinstitutionsgoverning andagricultural decision-making food benefits. Promote andprotect chains thatprovide decentralized sustainablesupply multifunctional tradeandpolicy. support, agricultural research, distributionof government control overClose therevolving doorbetween corporations andpositionsof andallow social andenvironmentalcostslargest agribusinesses tobeexternalized. benefitthe aswellRemove asother subsidiesthatprimarily cheap grains subsidies for reserves. managedfood orpublicly Establish farmer-owned through taxevasion subsidiariesinother totackle countries.agreements Close existingloopholesincorporatecooperation taxationandsigninternational practices.buying, tradingandadvertising and consumers, andintroduce andimplementationmechanismsabusive thattackle laws Dismantle nationalmonopoliesandoligopolies thatwieldexcessive power over farmers

www.agribusinessaction.org 15 50 Supply Chain in the EU. Available at http://ec.europa.eu/economy_finance/thematic_articles/ at http://ec.europa.eu/economy_finance/thematic_articles/ Available Supply Chain in the EU. Adhere to expectations on business practices to protect, respect and remedy human and remedy respect to protect, on business practices to expectations Adhere of Representative Special the advanced by rights, rights on human the Secretary-General business enterprises. and other corporations and transnational ark, Ed. 2009. Silver lining, finally? 2009), page 4.BBC. 2009. Silver ark, Ed. Feed Management (September/October BBC at: http://news.bbc.co.uk/2/hi/business/8119076.stm Index. Available Price Food World riculture and Agrifood Canada. Farm Income Forecast Highlights. Available at: http://www4.agr.gc.ca at: http://www4.agr.gc.ca and Agrifood Available Highlights.  riculture Farm Forecast Canada. Income AAFC-AAC/display-afficher.do?id=1233951245705&lang=eng#_1.0 ropean Commission, Economic and Financial Affairs. and Financial 2009. Analysis Commission, Economic ofropean Transmission along the Price  Food • WSNET (Famine Early Warning Network), USAID. October 2009. Price Watch: Urban Food Markets. Markets. Urban Food Watch: October 2009. Price USAID. Network), WSNET (Famine Early Warning at http://www.fews.net Available l onomic Research Service, USDA. Farm and Costs: 2008 Farm Income Sector Income Service, USDA. onomic Research at: http://www.ers.usda.gov/Briefing/ Updated 6 October 2009. Available Estimates. FarmIncome/2008incomeaccounts.htm ndrickson, Mary, John Wilkinson, William HeffernanRobert and Gronski. 2008. The Mary, ndrickson, global system food at: http://ssrn.com/abstract=1337273 Available and nodes of power. ofits from the 2009 Global Fortune 500 database. Available at:http://money.cnn.com/magazines/ FortuneGlobal 500 database. the 2009 ofits from fortune/global500/2009/performers/industries/profits O. 2009. How to feed the world in 2050. Background paper prepared for the High-Level Expert to feed Background in 2050. paper prepared 2009. How Forum the world O. and Agriculture Organization. UN Food in 2050. Rome: the World to Feed on How 2009. State of 2) (See Endnote  O. Insecurity in the World. Food O. 2009. State of Crises—Impacts and Lessons Learned. Economic O. Insecurity in the World. Food at: http://www.fao.org/docrep/012/i0876e/ and Agriculture Organization. Available UN Food Rome: i0876e00.htm and Agriculture. Global Information Requiring Countries in Crisis on Food System and Early Warning O. List’. at: http://www.fao.org/giews/english/hotspots/ Available External or on ‘Watch Assistance index.htm e Uphoff, NT. 2002. Agroecological Innovations: Increasing Food Production with Participatory with Food Production Increasing Innovations: 2002. Agroecological e Uphoff, NT. and Development. Earthscan; London: Programme/UN UN Environment on Trade Conference at http://www.unctad. Security in Africa. Available Development. Agriculture 2008. Organic and Food de RE Hine, FWT Penning J Dixon, J, AD Noble, D Bossio, org/en/docs/ditcted200715_en.pdf; Pretty, yields in developing countries. agriculture increases 2005. Resource-conserving and JIL Morison. Vries Eileen Moghtader, Jeremy Catherine, 40(4): 1114-1119; Badgley, & Technology Environmental Science Perfecto. Samulon and Ivette Andrea Emily M. Jahi Avilés-Vázquez, Zakem, Chappell, Katia Quintero, 22(2): Systems Renewable Agriculture2007. Organic agriculture & Food and the global food supply. 86-108. overnment Accountability Office. 2009. and Office. Concentration Accountability Agricultural Commodityovernment Agricultural and Briefing for Congressional Prices. Staff. Available at http://www.gao.gov/ Food 24Retail April 2009. new.items/d09746r.pdf argill and fertilizer company profits from Corporations are still making Seedling (April are a Corporations 2009) killing. from argill and fertilizer profits company GRAIN. from g NCTAD. 2009. World Investment Report. Transnational Corporations, Agricultural and Corporations, Production Investment Report. Transnational 2009. World NCTAD. and Development, 124-125. and Geneva: on Trade UN Conference Development. New York obal Fortune 500 database. Available at: http://money.cnn.com/magazines/fortune/global500/2009 obal Fortune 500 database. Available evenues from the 2009 Global Fortune 500 database. Available at: http://money.cnn.com/magazines/ at: http://money.cnn.com/magazines/ the 2009 Global Fortune 500 database. Available  evenues from fortune/global500/2009/full_list/ r Business Monitor International, Asia Pacific Food and Drinks Insights. 1 October 2009. Insights. Food and Drinks Business Monitor International, Asia Pacific

Se Eu Feedstuffs 81(41). 5 October 2009 Issue Feedstuffs Ec G Thai Press Reports. 2009. Thailand’s Charoen Pokphand Foods (CPF) 3Q09 profit should be record high. high. record should be (CPF) 3Q09 profit Foods Pokphand Charoen 2009. Thailand’s Reports. Thai Press still making Seedling (April GRAIN. a killing. Corporations are 2009) from from Figures C FE A P C R Gl U

FA FA He http://www.fao.org/wsfs/world-summit/wsfs-challenges/en/ FA FA 23 article16028_en.htm 20 21 22 15 16 18 19 11 12 13 14 8 9 10 4 5 6 7 1 2 3 Endnotes Agribusiness Action Initiatives 16 27 26 25 24 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 Hendrickson et al. 2008. Appendix 1: Matrix of Dominant Firms andSectors. DominantFirms (SeeEndnote 6). 1:Matrixof Hendrickson etal.2008.Appendix De M Spi Ste La Fo April 2009,page16. 28 Food efforts. BusinessNews.2009.Kraftaddstosustainability Van Lo Su Sai Go FA U Re 2009. label.28April private beverages home food, of one-fourth Food BusinessNews.2009.Nearly theworld’s leadingretailers. 2009.Expansionstrategiesof EuromonitorJuly International. De http://www.nestle.com Age(23June2008)pageS-9. andAdvertising

Act Se Te N Food Policy, University, City London,UK. theworlds’ companies. largestfood Centre for 25of reportedcommitments andpractice of of review andhealth:A andElizabethKaelin.industry, 2006.Thefood Rayner activity diet,physical ng, Tim, Geof cfm?refid=105366 Consultation2009. Available Society System. at:http://www.tradeobservatory.org/library. Civil Financial andMonetary theInternational of Submission totheUNCommissiononReforms IATP.ppan, Steve. 2009.Comments onRegulating CommoditiesExchanges asFinancial Markets. od Business News. 2009. Mars details sustainability efforts. 28 April 2009,page24. 28 efforts. od BusinessNews.2009.Marsdetailssustainability available at:http://soprweb.senate.gov/index.cfm?event=chooseFields&reset=1available bbying expensesreportedintheLobbying Disclosure ActDatabase,provided by theU.S. Senateand Earthscan Publications.Earthscan cfm?refid=89695; UNDP. GlobalTrade 2003.Making Work People. for Virginia:London&Sterling: CAFTAfarmers. Press availableat:http://www.iatp.org/iatp/press.overrelease benefitsagribusiness August). Available at:http://www.monthlyreview.org/090801murphy.php Suppan.2004. ; Steve urphy, (July/ Review Sophia.2009.Free Abadideawhosetimeisdone.Monthly tradeinagriculture: industry transformation and small farmers in developing countries. indeveloping World andsmallfarmers InPress. Development, transformation industry ardon, Thomas, ChristopherBBarrett,JulioABerdegue andJohanFMSwinnen. 2009.Agrifood 28 April 2007.COAG28 April 2007/5.Rome: FAO,. 25- Development. andAgro-industries Agribusiness 2007.Challengesof O CommitteeonAgriculture. 13, August. paidnotaxes 2008.“MostUSfirms d, Carolyn. over 7-year span.” San Francisco Chronicle, pageA1 regoverningmarkets.org/ Markets? Gower SustainableFoodAgrifood at:http://www. Chains Series; other publicationsavailable (eds.)Fearne andDerek 2007.Regoverning Ray Markets: Small-scaleProducers APlace for inGlobal at: http://www.actionaid.org.uk/doc_lib/actionaid_who_pays_report.pdf; BillVorley, Andrew 2007. WhoPays? How BritishSupermarketsAre Keeping Women Workers inPoverty. Available AvailableActions Initiative. at:http://www.agribusinessaccountability.org/; ActionAidInternational. SupermarketBuyer Power intheEUFoodThe Abuseof Retail Sector. Amsterdam: Agribusiness example:MyriamVandere for Stichele (SOMO)andBobYoung (Europe Economics). March 2009. Publication_repository/CIDSE%20IATP%20Global%20Food%20Responsibility%20paper.pdf Path. aNew Must Chart May, 2009.Available at:http://www.cidse.org/uploadedFiles/Publications/ eldoch, AlexandraandAnneLaure Constantin.GlobalFood Responsibility:TheEUandtheU.S. North AmericanConsumer Markets.North TerraChoice EnvironmentalMarketing Inc. rraChoice. November 2007. The “Six Sins of Greenwashing NovemberrraChoice. 2007.The“SixSinsof pdf/officialreports/srrtf2009_iprightsseedpolicies_en.pdf andencouraging innovation. Availableagrobiodiversity at:http://www.srfood.org/images/stories/ Schutter, Olivier. Enhancing Seedpolicies andtherighttofood: 2009.Therighttofood: july-dec08/waterwars_11-17.html airedReport on17November 2008.Transcript at:http://www.pbs.org/newshour/bb/asia/ available SamLazaro, Fred. scarce Coca-Colaviefor November watersupplies. PBS 2008.Indianfarmers, the EU, theworld. SeattletoBrusselsNetwork. badfor Available at:http://www.s2bnetwork.org. andLeonardder Stichele, Myriam,KimBizzarri Plank.2006.Corporatepower attheWTO: Goodfor bbins, Christine and Roberta Rampton. 2009. Bill Gates says ideology threatens 2009.BillGatessays hungerfix. bbins, ideology Rampton. ChristineandRoberta items/d08957.pdf U.S.-Controlled Corporations, 1998-2005.GAO-08-957. Available at:http://www.gao.gov/new. of Foreign-of the Reportedand Accountabilityvernment TaxLiabilities Office. 2008.Comparison ion Aid International. Availableion AidInternational. at:http://www.actionaid.org/main.aspx?PageID=189 Development. New York New Development. UNConference onTrade andGeneva: andDevelopment,118-119. CTAD. 2009.World Transnational Report: Investment Production Corporations, and Agricultural TM ”. A Study of Environmental Claimsin of ”. AStudy www.agribusinessaction.org 17 ntyre, Beverly D, Hans R Herren, Judi Wakhungu and Robert T Watson (eds.). 2009. Global Report. (eds.). and Robert T Watson Judi Wakhungu Hans R Herren, Beverlyntyre, D, International Assessment of for Development. & Technology Agricultural Science Knowledge, at: http://www.agassessment.org Available Island Press. D.C.: Washington, pp, Jennifer and Doris Fuchs. 2009. Agrifood and sustainability: Jennifer A global and Doris Fuchs. governance, corporations, pp, in Corporate Power 1-25 in: Jenniferframework for(eds.) Clapp and Doris Fuchs analysis. Pages Global Agrifood MIT Press. Cambridge, Massachusetts: Governance. ps and principles/perspectives from the Office of the UN High Commissioner on Human Rights. 2007. the Office ps and principles/perspectives from 2007. Rights. UN High Commissioner on Human of the to Development Cooperation. New on a Human Rights-Based Approach Questions Frequently Asked at: http://www.un.org/depts/dhl/humanrights/toc/toc9.pdf and Geneva. Available York Reuters 15 October 2009. Available at http://www.reuters.com/article/environmentNews/ Available 15 October 2009. Reuters idUSTRE59E58120091015 ggie, John. 2008. Protect, Respect, and Remedy: for A Framework Respect, Business and Human Rights. ggie, John. 2008. Protect, at: http://www.reports-and-materials.org/Ruggie-report-7-Apr-2008.pdf Available McI Cla Ste Ru 48 49 50 47 Agribusiness Action Initiatives 18 July 2008 June 2008 May 2008 May 2008 April 2008 April 2008 October 2007 Spring 2007 ANNEX 1: Major ultilateral Initiatives andDecisionsLeadingto theWorldFoodSummit

integrity of smallholdingagriculture”. of integrity (potential) ecological ratherthanthe and profitscultural sustainagribusiness promoting“therich, notand for thatfeeds theworld, agriculture and[whose] initsown (sustainable)development right” asanarena onagriculture focus of to is criticized its“inability organizationsandacademicians society for by civil to take arights-based approach. failure Foodfirst Action Networkfor its (FIAN) and International other CSOs The HLTF produces Action,criticized Framework for aComprehensive by isheldinIstanbul,Turkey.Climate ChangesandBioenergy FAO Conference HighLevel onWorld Food The Challengesof Security: the HighCommissiononHumanRights, social movements andCSOs. of onRighttoFood, HRC, by theUNOffice theSpecialreform Rapporteur rights processes andprinciples hasbeenlodgedagainsttheHLTF andFAO human toobserve crisis. andthefood failure Criticism righttofood for of thesystematic violations andnationalpolicies areinternational root causesof The RighttoFood andtheWorld Foodemphasizingthat Crisis, strongly theUN(HRC) organizes aspecial sessionon The HumanRightsCouncil of immediate needsarisingfromcrisis”. thefood the Bank’s resources withinthenext3years “toaddressup to$1.2billionof World BankestablishesaGlobalFood CrisisResponse tofast-track Facility sustainable development. promising reducing technologies for hungerandpromoting thearrayof of aspart rather thanfree biotechnology tradeandthatdonot endorsemodern trade and Australia,whichtosectionsthatpromote objectinparticular fair toacceptcountries andapprove failing thedocuments are theU.S., Canada meeting inJohannesburg. Theonly (IAASTD)inaplenary Development Knowledge, Science Agricultural &Technology for Assessment of theInternational 58 countries accept andapprove reportsof thesummary FundandWorld Monetary (International Bank). (HLTF) UNandBrettonSecurity Woods institutions composed of TaskforceThe UNSecretary-General establishesaHigh-Level onFood entrepreneurial by theirorganizations”. smallholderssupported producers valuechains linking toconsumersextensive andincluding many agriculture’,entrepreneursThe reportextolsthe‘new “ledby private in a century. of inaquarter thefirstWDRonagriculture Development, for World BankpublishestheWorld 2008:Agriculture Report Development promoting sovereignty. food and farmers corporations toexpandtradeflows, ratherthansupporting withinternational agendahighlightspartnerships liberalization. Theinvestment net andloansinlow-income production andtrade countriesagricultural for World BankproposesDealonGlobalFood aNew Policy, asafety callingfor 3 2 Thereport 1 www.agribusinessaction.org 19

th The G8 creates the Global Platform the SecurityThe G8 creates and on Agriculture, Food of engagement strong with with the (GPAFS) Nutrition the private sector, in food production needed to increase are that “urgent measures rationale efficient be an will not FAO, the UN, especiallycountries and most affected The underlying for ofchannel motive assistance”. the needed is the desire G8 the multilateral their hold on the food bypass system, to strengthen countries of bring smallholder agriculture and control under the system the private strongly as severalSouthern as well governments, CSOs, Many sector. system one-vote the one-country, bypasses because it oppose the GPAFS International with some support the Fund for from FAO, FAO. guaranteed by Programme (WFP), Food the World and Agricultural Development (IFAD) negatively. also reacts Sustainability: Guide to Private A Food releases UN Global Compact Sector Action. SecurityMembers of (CFS) embark Food on World Committee the FAO challenges key role to on the vision and focus on reforms CFS’s to redefine of hunger; eradicating that all relevant expand participation to ensure with the aim of rules and procedures adapt heard; are stakeholders becoming political platform UN the central dealing with food security and nutrition; national and local levels; and support linkages with regional, CFS strengthen of with a High-Level Panel discussions based on Experts are so that decisions evidence and state-of-the-art knowledge. of and the Governance to Food on the Right Declaration The Cordoba in Madrid, on the 60 & Agricultural is launched the Global Food Systems anniversary of the Universal of Declaration It was prepared Human Rights. a groupby of experts Rapporteur the UN Special including on Right to Food, the Secretary of General Food Unit. Right to FIAN, and staffFAO’s from the Security for by The Madrid High-Level on Food Meeting All is convened ofgovernment Spain with the support of and the G8. Consensus the HLTF to opposition of due achieved is not on the GPAFS Rome-based CSOs, many Ban Ki- UN Secretary-General food and Latin American countries. agencies the institution ofMoon proposes based on the right to food track to a third of approach supplement the twin-track (food agencies Rome-based assistance with support forcoordinated rural development). domestic and international non-governmental Several large U.S.-based to End Global Hunger. a Roadmap organizations (NGOs) release The UN Environment Programme Crisis: publishes The Environmental Food linking Crises, multiple Food Future in Averting The Environment’s Role water shortages, land degradation, change, (climate environmental crises environmental etc.) with food the need to protect insecurity and stressing food catastrophic shortages. to prevent in order resources Security Initiative, Food also the L’Aquila produces G8 Summit at L’Aquila Donors and multiple multilateral institutions. countries 19 other endorsed by than $20 billion to support global more a renewed effortcommit to fight and no barriers on exports. while calling for “open trade flows” hunger,

September 2008 October 2008 December 2008 July 2008 January 2009 February 2009 February 2009 July 2009 Agribusiness Action Initiatives 20 October 2009 September 2009 September 2009 3 2 1 Endnotes Mc World Bank.2007.World 2008.Washington, Report Development 8) (page DC. Qu more specifically. nototations referenced are from core documents produced by if organizations behindeach initiative, Responses to the World Development Report 2008. Journal of Agrarian Change9(2):277-290. Agrarian Responses totheWorld of 2008.Journal Report Development NGOs’ Change9(2):263-276;MatteoRizzo. Agrarian Alternatives: for 2009.TheStruggle of Journal Problem CommentontheWorld inAfricanAgriculture: Productivity 2008. Report Development at http://www.fpif.org/fpiftxt/5324; PhilipWoodhouse. 2009.Technology, Environmentandthe Sameer Dosani.2008.Africa’s unnaturaldisaster. Foreign Policy inFocus Commentary. Available London; of OrientalandAfricanStudies, University Policy Development for andResearch, School of 36.Centre Viewpoint Change.Development Agrarian gains?Perspectivesreally fromof theJournal Who brettonwoods.org andArlosOya. 2009.‘Agribusiness; HannahBargawi development’: for 2009. Bank’s Whitworth. Rachel approach underfire. toagriculture Available athttp://www. Change9(2):235-246(quoted materialonpages237and 238); Agrarian of 2008. Journal theWorld Report Development Michael, Philip. of Areview onagriculture: 2009.Banking findings. theplenaries include presentations by aboutits IAASTDparticipants none of Science &Technology detail,yet (IAASTD)assessedingreat Development for Knowledge, Agricultural Assessmentof same topicsthattheInternational the associated documents. Forum Expert addresses TheHigh-Level virtually and continues in torefera‘twin-tracksecurity approach’ food toglobal FAO Forum Expert onHow holdsaHigh-Level toFeed theWorld in2050, sector”. agricultural andregulations policy thatpromote inthe investment implementation of in government controls oncommodity and prices, reform andsupporting in how toengagelocalandnationalgovernments, pressingreductions for sectortradeassociations trainingprivate market information, and analyze governments tocollect by growth improvingenvironments for of theability to access capital…TheU.S. willcontribute tostrengthening enablingpolicy andbusinesses farmers of andlimitstheability investment deters private that “frequent sector andunpredictable intheagricultural publicintervention Thissectiongoes growth”. ontoexplain agribusiness environmentfor policy an“enabling trade through—among other recommendations—creation of Document, which stresses improving productivity, expandingmarkets and U.S. releases Consultation aGlobalHungerandFood Initiative Security consumers. peasantassociations, pastoralistsand fishermen, but not mentioningfarmers, actively, foundations,businessesandNGOstoparticipate calling outprivate assistance tolow-income countries. Itiscriticized explicitly by CSOsfor recommended intheU.S. document, toscaleupagricultural preparatory It proposes amultilateralTrust Fundtobemanagedby theWorld Bank,as andhunger.with thefinancialaddressesfoodinsecurity crisis, oneparagraph theresulting declaration deals The G20meetsinPittsburgh.Whilemostof www.agribusinessaction.org 21 1 anuary 31, 2009) year ending January 31, (based on ANNEX 2: ANNEX 500 Fortune in Global Food Companies Agribusiness Action Initiatives 22