The influence of GLOBALISATION on the food industry

Question 1

Issues 1: Food Miles

Answer 1

• indicates how far food has travelled from producer to consumer
• Globalisation has caused the broadening of FOOD TASTES and the desire of YEAR-ROUND supplies of fruit and veg to increase.
• estimated that supermarket foods travel 2400km before arriving on shelves.

Question 2

Issues 2 : obesity

Answer 2

• Globalisation has had a major influence on DIETARY PATTERNS.
• As AFFLUENCE increase, the consumption of PROCESSED foods, MEAT & DAIRY products rises.
• The number of FAST FOOD OUTLETS promoted by TNC’s also increases.

CHINA ~ between 1961 and 2015 the average Chinese person went from eating 4kg of meat to 50kg.

PHILLIPINES ~ influence of television, tourism and education, has lead to dietary changes and the number of OVERWEIGHT children has DOUBLED.

Question 3

Issues 3 : Inequality between TNC’s & Small Suppliers

Answer 3

• TNC’s and major food retailers are OVER
  TAKING small-scale farmers.

GLOBAL VALUE CHAINS ~ National food systems are increasingly LINKED through patterns of trade and investment .

• In Brazil, India , Mexico and South Africa FOREIGN DIRECT INVESTMENT , by large TNC’s reduced government control over their own food systems.
• Governments have limited ability to promote the interests of their small farmers leaving them disadvantaged and marginalised.

Question 4

Issues 4 : Price crisis

Answer 4

• FAO produces a FOOD PRICE INDEX which is a measure of the monthly change in international prices of a basket of food commodities.
• Global prices are extremely VOLATILE & VULNERABLE to a range of PRICE SHOCKS due to:
• conflicts
• climate shocks
• pandemics

Countries with the highest warning level:
- Nigeria
- Democratic Republic of Congo
- Yemen
- Somalia
- Kenya
- Ethiopia

International Food crisis 2008 ~ threatened political stability in the Middle East , Haiti and Indonesia.

Question 5

Opportunities 1 : Technological innovation

Answer 5

Global sharing of technological advances in farming has INCREASED food production.

GENETICALLY MODIFIED CROPS:
- alters the DNA of crops
- plants are able to withstand harsh
conditions such as drought and soil
salinity caused by global warming.

NITROGEN EFFICIENCY:
- plants are modified to improve their
efficiency to use the available nitrogen.
- fertiliser usage can be reduced. lowering
CO2 emissions.

FERTILISER DEEP DISPLACEMENT:
- specialised fertiliser ‘ briquette’ is plant deep below the soil.
- slowly releases NITROGEN
- increase crop yields and fertiliser usage is reduced.

Question 6

Opportunities 2 : Short-term food relief

Answer 6

The cooperation and coordination required to assist countries in need of emergency food aid has been enhanced by globalisation.

International aid comes through different donor routes:

BILATERAL AID ~ from one country to another.

MULTILATERAL AID ~ provided by a number of countries and agencies e.g UN

NON-GOVERNMENT AID ~ provided by a voluntary organisation.

Question 7

Opportunities 3 : Consumer choice

Answer 7

• The increase in GLOBAL TRADE has
  created an ABUNDANCE of food products.
• these are available to consumers through RETAIL OUTLET & ONLINE.

GLOBAL APPEAL ~ Coca-cola, KFC , Subway, Mcdonald’s.

• A CONSUMER DRIVEN global food industry exists, serviced by RETAIL GIANTS e.g Tesco.

Question 8

PROBLEMS caused by TECHNOLOGICAL INNOVATION

Answer 8

Wealthy farmers and businesses may use it to MAXIMISE INCOME rather than to improve food security:

Examples~ THE ASIAN GREEN REVOLUTION had a high dependency on fertilisers and pesticides , benefitting wealthy farmers but leaving small-scale farmers in debt.

UNDEVELOPED COUNTRIES that cannot keep pace with change:

Example ~ ETHIOPIA has suffered from the increasing efficiency of the production of palm oil and cocoa in Asian countries.

Question 9

The influence of GLOBALISATION on food security

Answer 9

• Since the 1970’s , greater INTERCONNECTEDNESS has increased transnational flows of people ,goods and information.
• Improved access to global food sources ~ distinct impacts on international trade in food, diets and societies.
• NO seasonality of food products as they can be sourced from across the globe.

The globalisation of the food industry
raises several issues including :

• Food miles
• Inequalities between TNC’s and small food
  producers.
• Obesity
• Food prices

Question 10

Obesity in the USA

Answer 10

• More than TWO-THIRDS of adults in the United States are overweight or obese.
• More than 12.7 million American children are obese.
• A greater waist size, increases the risk of the development of diabetes as it is found me in the top 10% of measurements were 20x more likely to develop the disease.
• Obesity cost Americans $147 billion each year, obese individuals pay $1429 more each year on medical costs than those of a normal weight.
• West Virginia has the HIGHEST obesity rate of 37.7%
• Colorado has the LOWEST obesity rate of 22.3%
• Americans eat 23% more calories than they did in 1970 due to a boom in meat consumption.
• Fast food makes up 11% of the average American diet
• Overweight or obese individual miss approximately 56% more work days than people of a normal weight, due to medical issues.

Question 11

Obesity in China

Answer 11

• Between 1961 and 2015 , the average Chinese person went from eating 4kg of meat per year to 50kg , pork being the most popular.
• A major investment focus for fast-food retailers:
• Accounts for half of the total revenue of
  Yum brands ~ 8400
• The largest number of KFC’s ~ 5900
• 2700 Mcdonald’s outlets in 2019

KFC - has developed local supply chains and has adapted its products to local tastes such as fried dough sticks and rice porridge.