GLOBALIZATION & THE FOOD SYSTEM

:TRENDS AND NEW CHALLENGES

By Group 8

송현석박신영김윤주박도영이정수

NUTRITION TRANSI-TION

CONTENTS

BACKGROUND

FOOD CRISIS

THE RISE OF GMO

: The Effects of Globalization on the Food System

BACKGROUND

THREE MAJOR TRENDS

Consolida-tionOf

food conglomer-

ates

Vertical Chain

Integration

Diversified Usage

Of Cereals

* The largest chicken processor* Export to 73 countries* Leading chicken breeding stock supplier* Nation’s second largest market of corn and flour tortilla

* Controls 93% of the US soybean seed market

Transnationalization of these conglomerates by M&A and FDI

According to the TNI (Trans-Nationality Index)

Their trans-nationality increased 59% to 79% during the 20th century

FOOD CONGLOMERATES

VERTICAL CHAIN INTEGRATION

SUPERMARKETSPROCESSED PRODUCTS

Food and grocery retailing is becoming increasingly concen-

trated

Change in production and trading patterns

Transnational companies are controlling through vertical chain integration

Production of grains are not only for human consumption

Cutting cost and time through systematization and standard-ization of agricultural technology and techniques

AGRICULTURAL TECHNOLOGY

& TECHNIQUES

DIVERSIFIED USAGE OF CEREAL

CHANGES IN THE FOOD SYS-TEM* TRANSNATIONAL FOOD COMPANIES

* LIBERALIZATION OF TRADE & FDI

* ADVERTISING & PROMOTION

CHANGES IN THE SOCIAL

SYSTEM HIGHER GNP URBANIZATION CULTURAL NORMS

Nutrition Transition

OVERWEIGHT UNDERWEIGHT

500 million adults world wide obese

24.3% in 2005 highest at 29.1% in

Africa

Nutrition Transition

구분 1999/00 2006/07 2007/08 2008/09(E) 2009/10(P)

Production 1,872.2 2,000.8 2,121.6 2,227.3 2,187.3

Supply 2,452.7 2,390.2 2,463.6 2,590.6 2,633.9

Demand 1,865.4 2,048.2 2,100.3 2,143.9 2,183.4

WHAT’S THE PROBLEM?

WE ARE PRODUCING ENOUGH FOOD !

HOWEVER . . .

Food Crisis

FOOD CONSUMPTION IS NOT

EVENLY DISTRIBUTED !!

Food Crisis

FACTORS CONTRIBUTING UNEQUAL CONSUMPTION

Food Crisis

DIRECT FACTORS

INDIRECT FAC-TORS

3kg of grain 1kg of animal protein in cereal fed animal production

Total global grain harvest of 2004 would feed 6 billion people. If the same amount of grain to feed animal

Only 2.6 billion people

Food CrisisDIRECT

FACTORS

Biofuel takes 2% of overall grain consumption and 25% of U.S grain consumption and amount that was able to feed 330million people.

Small portion but production is increasing rapidly.

Food CrisisDIRECT

FACTORS

Overconsumption indeveloped countries

Food Crisis INDIRECT FACTORS

Increased food price

Overconsumption indeveloped countries

Food Crisis INDIRECT FACTORS

Increased food price

Overconsumption indeveloped countries

Food Crisis INDIRECT FACTORS

Exacerbated food accessibility

Food CrisisFUTURE SPECULATIONS

Productivity of agriculture may not be able to support the exponential growing

population

GMO

Genetically Modified Organisms, process of creating a new crop from the original parent crop through geneticmodification.

What is GMO?

Process

selective breeding

Goals

To create a studier crop that is immune to diseases as well as insects.To create a variant that contains more nutrients than the original.To create a crop that yields a better harvest.

TransgenesisMutabreed-

ingMutagenesis

GMOProblems of GMO

1. GMO is controlled by large conglomerates leading to the instability of the food system, where originally in-dependent countries and individual farmers are incorpo-rated into the system.

2. Genetically modified seeds are infertile, and are infectious through ‘cross pollination’

ConclusionNutrition Transi-tionPolicies will need to focus on promoting healthy diet. *Awareness of how globalization has affected diets. *Incentives for Transnational Food Companies and other ma-jor players in the food system to promote a market of healthy foods and healthier environment. *Curb food advertisement and promotions and health promo-tion and marketing healthy foods. Food Cri-sisDistribution and Accessibility of food.

*Incentives to consume less grain for meat and biofuel. A quota of grain that should be sent to the market for poor nations. *International organization should monitor whether the grain sent is properly used to feed people. *More investment for agricultural R&D sector

Conclusion

GMO

*Governments should intervene for genetically modified seeds are offered at a stable price.•Set regulations that genetically modified crops must be planted a certain distance away from unmodified crops.*The public sector could invest in the genetically modified food sup ply so that it is not controlled by a select few compa-nies.

Thank you