by Marion Nestle

Currently browsing posts about: Concentration

Dec 2 2020

Concentration in the food business: too high, too risky

A report to the Family Farm Action Alliance, “THE FOOD SYSTEM: CONCENTRATION AND ITS IMPACT,” shows just how monopolistic this industry has become.

The CR4 metric is the percentage of the particular industry owned by the top 4 companies.  The top 4 beef processing companies control 73% of all beef processing.  The top 4 soft drink companies control 82%.  The top 3 cereal companies control 80%.  Anything over about 50% is considered to be highly concentrated.

What’s wrong with a high CR4 index?

Agrifood consolidation reduces farmer autonomy and redistributes costs and benefits across the food chain, squeezing farmer incomes. In 2018, farmers whose primary occupation was farming but with sales of less than $350,000 had a median net income of -$1,524. An agriculture system without people has depopulated rural communities causing a collapse in social relationships. Communities of color bear a disproportionate burden of exposure to excessive pesticide use or large animal confinement operations.

What is to be done?

At the heart of this analysis is a focus on power – both economic and political. Ultimately American political democracy rests on economic democracy and vice versa (Wu 2018). Thus, our laser focus in scholarship, praxis and policy must be on democratizing the agrifood system through a multitude of strategies at local, state, regional and national scales.

Mar 25 2016

Weekend reading: Concentration and Power in the Food System

Philip H. Howard. Concentration and Power in the Food System: Who Controls What We Eat?  Bloomsbury, 2016.

I don’t know Philip Howard personally but I have long appreciated his graphic visualizations of the extent of concentration—only a few companies owning fast percentages of the market—in various industries:

This brief book summarizes his work in developing these graphics and makes it clear why he thinks industrial concentration is a problem for American democracy.   Without competition, these companies get away with doing whatever they want.  He gives a few examples:

Walmart, which controls 33 percent of US grocery retailing, is challenged for exploiting its suppliers, taking advantage of taxpayer subsidies, and paying extremely low worker wages…Monsanto, which controls 26 percent of the global commercial seed market, is denounced for its influence on government polocies, spying on farmers it suspects of saving and replanting seeds, and the environmental impacts of herbicides tied to these seeds.  These impacts tend to disproportionately affect the disadvantaged—such as women, young children, recent immigrants, members of minority ethnic groups, and those of lower socioeconomic status—and as a result, reinforce existing inequalities…Like ownership relations, the full extent of these consequences may be hidden from public view.

Howard’s solution?  The food movement!

Joining these movements and supporting the alternatives created by others could therefore be essential to maintaining our ability to feed ourselves in the future.

The book is fun to read (“seed-industrial complex”) and, obviously, well illustrated.  If you want to know how current-day food markets really work, this is the place to start.