STILL HUNGRY

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STILL HUNGRY!

• What's wrong in the food market and food
  production?

Sostenibilità, commercio equo, comunicazione
Monica Di Sisto vice presidente
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Some evidences of the food crisis and more

• At the World Food Summit in 1996, when there were
  an estimated 830 million hungry people,
  governments pledged to halve the number by 2015.
  Many now predict that the number will instead
  increase by 50 to 1.2 billion threatened by 4
  crises environmental, financial, economic and
  social crisis.
• Fao (Sofa 2008) says that The real food price
  index began rising in 2002, after four decades of
  predominantly declining trends, and spiked
  sharply upwards in 2006 and 2007.
• By mid-2008, real food prices were 64 percent
  above the levels of 2002.
• Vegetable oil prices have risen twice as fast as
  average incomes since 2000, and other commodity
  prices have also risen substantially relative to
  incomes wheat by 61 percent, maize by 32 percent
  and rice by 29 percent.
• These rapid increases have led to a substantial
  loss of purchasing power.

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The food production is growing worldwide
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The food production is growing worldwide/2
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What about trade?

• Global food-import expenditures, in value terms,
  are forecast to reach US1 035 billion dollars in
  2008, 26 higher than the previous peak in 2007.
• The bulk of the anticipated growth in the world
  food import bill would come from higher
  expenditures on rice (77 percent), wheat (60
  percent) and vegetable oils (60 percent).
• Import bills for livestock products are expected
  to register smaller increases, owing to moderate
  rises in global prices together with subdued
  trade.
• Higher international commodity prices are
  responsible for most of the increase, but freight
  costs, which have almost doubled for many routes,
  also contribute.
• Among economic groups, the most economically
  vulnerable countries are set to bear the highest
  burden in the cost of importing food, with total
  expenditures by least-developed countries and
  low-income food-deficit countries expected to
  climb 37 percent and 40 percent, respectively,
  from 2007, after having risen almost as much in
  the previous year.
• The sustained rise in imported food expenditures
  for these vulnerable country groups is such that,
  on current expectations, by the end of 2008 their
  annual food import basket could cost four times
  as much as it did in 2000.

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Export still a dream for LDCs
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Imports still growing for LDCs
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A fairy tale the International Trade
Organisation

• The World Bank and the International Monetary
  Fund (IMF) were set up at a meeting of 43 winner
  countries of the II World War held in Bretton
  Woods, New Hampshire, USA in July 1944.
• Their aims were to help rebuild the shattered
  postwar economy and to promote international
  economic cooperation. The original Bretton Woods
  agreement also included plans for an
  International Trade Organisation (ITO)..
• The Ito has been ratified in 1948 during the
  United Nation Conference in LAvana participated
  by 56 countries (32 were poor countries).
• The Charter provided for the establishment of the
  ITO, and set out the basic rules for
  international trade and other international
  economic matters. The ITO Charter, however, never
  entered into force while repeatedly submitted to
  the US Congress, it was never approved.

John Maynard Keynes and Harry Dexter White at the
Bretton Woods Conference
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The Gatt and then

• On December 6, 1950 President Truman announced
  that he would no longer seek Congressional
  approval of the ITO Charter. In the absence of an
  international organization for trade, a General
  Agreement on Trade and Tariffs (GATT) reduced
  trade barriers through progressive rounds of
  negotiations till 1995.
• The 40 years GATT agreement reduced tariffs,
  introduced anti-dumping policies, tackled non
  trade barriers (as quality standards). The
  protections go down by 40.
• The GATT still exists as the WTO's umbrella
  treaty for trade in goods. In fact, the
  agreements fall into a simple structure with six
  main parts an umbrella agreement (the Agreement
  Establishing the WTO) agreements for each of
  the three broad areas of trade that the WTO
  covers goods and investment (the Multilateral
  Agreements on Trade in Goods including the GATT
  1994 and the TRIMS), services (GATS), and
  intellectual property (TRIPS) dispute settlement
  (DSU) and reviews of governments' trade policies
  (TPRM).

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The World Trade Organisation

• Before GATT's 40th anniversary, its members
  concluded that the GATT system was straining to
  adapt to a new globalizing world economy. In
  response to the problems identified in the 1982
  Ministerial Declaration (structural deficiencies,
  spill-over impacts of certain countries' policies
  on world trade GATT could not manage etc.), the
  eighth GATT round known as the Uruguay Round
  was launched in September 1986, in Punta del
  Este, Uruguay.
• It was the biggest negotiating mandate on trade
  ever agreed the talks were going to extend the
  trading system into several new areas, notably
  trade in services and intellectual property, and
  to reform trade in the sensitive sectors of
  agriculture and textiles all the original GATT
  articles were up for review.
• The round was supposed to end in December 1990,
  but the US and EU disagreed on how to reform
  agricultural trade and decided to extend the
  talks. Finally, In November 1992, the US and EU
  settled most of their differences in a deal known
  informally as "the Blair House accord", and on
  April 15 1994, the deal was signed by ministers
  from most of the 123 participating governments at
  a meeting in Marrakesh, Morocco.
• The agreement, driven by Clinton think thanks,
  established the World Trade Organization, which
  came into being upon its entry into force on
  January 1, 1995, and replaced GATT as an
  international organization. It is widely regarded
  as the most profound institutional reform of the
  world trading system.

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Trade in agriculture is growing

• Spurred by a 14 per cent growth in prices,
  agricultural exports in 2007 expanded by 19.5 per
  cent in dollar terms in 2007, the highest growth
  rate since 2000.
• Europe, which accounts fr 46 per cent of world
  exports of agricultural products, boosted exports
  by 19 per cent.
• Asia, the second-largest supplier with a share of
  19 per cent, increased its exports of
  agricultural products by 20 per cent, a rate
  unmatched since 2000.
• Exports from North America, the third-largest
  supplier, rose by 17 per cent. Its share of world
  trade has been progressively declining, from 21
  per cent in 2000 to 16 per cent in 2007, due to
  the below world average export growth during this
  period (6 per cent against 11 per cent for the
  world).
• South and Central America registered its highest
  growth rate since 2000 (23.4 per cent).
• Africa?

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Trade is growing more than production
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But what are wetalking about?
The Wto is trying to apply to agricultural
products that are mainly traded in internal
markets, rules designed by a so called
international market
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Share of agricultural products in world trade

• Fruit and Vegetables 1.4
• Cereals and preparation 1.1
• Oilseeds, veg. oil, and oil cakes1.0
• Meat and preparation0.8
• Coffee, tea, cocoa, and spices 0.6
• Milk and products and eggs 0.5
• Total 5.4

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FAO explain trade myts free tradefair trade

• Between 1999 and 2002 FAO undertook a series of
  23 country case studies to evaluate the impact of
  the WTO Agreement on Agriculture (AoA) on
  agricultural trade and food security in
  developing countries.
• The objectives of these studies were to assess
  the extent to which the AoA commitments had led
  to changes in domestic agricultural policy, to
  evaluate the impact on trade flows (imports and
  exports) of developing countries and to assess
  whether implementing the AoA commitments had had
  any impact on food security.
• An important finding was that for most of the
  countries in the sample, the implementation of
  AoA commitments did not imply any major change to
  domestic agricultural policy, including trade
  policy. The main reason was that most of the
  countries had implemented during the 1980s and
  early 1990s unilateral reforms including the
  liberalization of international trade, often as
  part of the conditionality of IMF/WB adjustment
  loans.
• Some of these were bound as part of their
  multilateral commitments in WTO Uruguay Round.

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Different countries similar experiences

• The 15 countries selected are representative of
  different regions of the world and different
  stages of development, with the main
  concentration on low-income countries that are
  likely to be at greater risk of food insecurity.
• They range from developing countries with large
  economies (e.g. China and India) to those that
  are amongst the smallest (e.g. Guyana).
• Eleven of the countries remain at a per capita
  income of less than 1 000/year, many
  significantly (e.g. Malawi). Over the period of
  reforms, per capita GDP has fallen in seven of
  the countries (all African) and increased in the
  remaining countries, particularly so in the
  selected Asian and Latin American countries.
• The agricultural share of GDP in these countries
  ranges from under 10 percent (Chile, Peru) to
  over 40 percent (Cameroon, Tanzania). Whereas
  this share would be expected to decrease as an
  economy develops, it has increased in five of the
  selected countries. In some, this has been the
  result of relatively high agricultural growth
  rates and relatively weak growth in other
  sectors while in others, growth in all sectors
  has been disappointing.
• Sometimes agriculture has grown rapidly (Chile in
  the 1980s, Malawi and Guyana in the 1990s) at
  others, it has cushioned an otherwise declining
  economy (Nigeria, Guyana and Peru in the 1980s
  Cameroon in the 1990s). The sample also shows
  that sustained rapid growth in agriculture is
  possible, if not typical. Of the 30 observations
  (two time periods and fifteen countries), in six
  cases agriculture grew by more than 4.5 percent
  per annum, and in six more it grew by at least
  3.5 percent. in all the selected countries there
  has been a decline in the share of the labour
  force employed

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From policies to market

• The key agricultural sector policy and
  institutional reforms in the countries studied
  include the followings
• elimination of state monopolies on agricultural
  marketing in specified inputs and outputs.
  Sometimes the monopoly had controlled both
  internal and external trade, and in other cases
  either one or the other only.
• elimination of price controls on foods.
  Interpretation of the effects of reforms is
  complicated by the fact that pricing reforms were
  sometimes ambiguous. For example, in Kenya price
  controls on sugar, maize and wheat were replaced
  with a set of floor prices and variable import
  levies designed to enforce the floor prices.
• elimination of pan-territorial pricing and
  support prices for farmers
• elimination of subsidies on agricultural inputs
• privatization or closure of state agricultural
  banks, or reduction of their lending activities
  (along with elimination of credit subsidies and
  restructuring of loan portfolios)
• privatization or closure of state-owned
  agroprocessing and storage facilities and of
  state agricultural marketing boards and trading
  companies.

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Why do it happened?

• One significant motivation for economic policy
  reform was the slowdown of growth in the 1980s
  accompanied by growing debt and the poor
  performance of traditional export markets.
• Many of the countries in the study had
  experienced periods of relatively rapid economic
  growth in the 1960s and 1970s, but economic
  deterioration had emphasized the need for policy
  reforms in more recent decades. Cameroons
  economy grew at 7 percent per annum between 1970
  and 1987 before subsequently declining. The
  Tanzanian economy grew at an annual rate of 6
  percent in the 1960s, as did Ugandas, whose
  balance of payments was also in surplus, but
  where national income declined in the 1970s.
  Malawi, China and Guatemala experienced a
  long-term annual growth rate of 5 percent or more
  between 1960 and 1982. Kenyas growth rate was in
  excess of 5.5 percent during that period but then
  dropped markedly.
• Sometimes the most evident cause of economic
  decline was internal conflict (e.g. Uganda in the
  1970s, Guatemala in the 1980s). More often, the
  proximate causes of crises were macroeconomic
  imbalances that became a drag on the economy
  (e.g. Kenya, India, Peru), unsustainable exchange
  rates (Nigeria), and the gradual but definite
  undermining of economic efficiency as a result of
  interventionist policies.
• In some cases the reforms were precipitated by a
  specific crisis in the economy, often signalled
  by a spike in inflation, shortages of foreign
  exchange and imported goods, declines in export
  commodity prices, a worsening of unemployment and
  underemployment, or a combination of these
  occurrences

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Barriers off, and then?

• Some of the many reasons for heterogeneity in
  production responses to free market, have to do
  with changing world market conditions, but some
  havent. Fao states that
• The role of public institutions in the supply of
  inputs and the marketing of crops has been left
  to the private sector. The efficiency and
  capability of the private sector to fill this
  role has been impaired by several factors. ...
  there is no incentive for committing resources
  for longer term investment in such things as
  storage facilities, processing plants, quality
  assurance systems, marketing capabilities and
  farmer support programmes... some smallholder
  farmers have failed to purchase the required
  quantity and quality of seeds, equipment and
  chemicals due to the removal of subsidies.
  Educational crop promotion seminars and extension
  services for peasants have largely been weakened
  by cuts in the budgetary allocations for such
  activities. ... Since infrastructure difficulties
  may lead to very high transport costs hence
  increased prices, private traders have
  concentrated business only in those areas with
  better facilities. Any area with ailing
  infrastructure has been deprived of marketing
  services...

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Winners and looser soil

• The truth about who profits and who loses from
  our global food system has never been more
  obvious. Take the most basic element of food
  production soil.
• The industrial food system is a
  chemical-fertiliser junkie. In the current
  context of tight food supplies, the small clique
  of corporations that control the worlds
  fertiliser market can charge what they want and
  thats exactly what they are doing.
• Profits at Cargills Mosaic Corporation, which
  controls much of the worlds potash and phosphate
  supply, more than doubled last year. The worlds
  largest potash producer, Canadas Potash Corp,
  made more than US1 billion in profit, up more
  than 70 from 2006. Panicking now about future
  supplies, governments are becoming desperate to
  boost their harvests, giving these corporations
  additional leverage.
• In April 2008, the joint offshore trading arm for
  Mosaic and Potash hiked the price of its potash
  by 40 for buyers from Southeast Asia and by 85
  for those from Latin American. India had to pay
  130 more than last year, and China 227 more.

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Winners and losers trade

• Fertilisers are just a sideline for Cargill. Its
  biggest profits come from global trading in
  agricultural commodities, which, together with a
  few other big traders, it pretty much
  monopolises.
• On 14 April 2008, Cargill announced that its
  profits from commodity trading for the first
  quarter of 2008 were 86 higher than the same
  period in 2007. Demand for food in developing
  economies and for energy worldwide is boosting
  demand for agricultural goods, at the same time
  that investment monies have streamed into
  commodity markets, said Greg Page, Cargills
  chairman and chief executive officer. Prices are
  setting new highs and markets are extraordinarily
  volatile.
• In this environment, Cargills team has done an
  exceptional job measuring and assessing price
  risk, and managing the large volume of grains,
  oilseeds and other commodities moving through our
  supply chains for customers globally.

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Absolute winners food traders

• Bunge, another big food trader, saw its profits
  of the last fiscal quarter of 2007 increase by
  US245 million, or 77, compared with the same
  period of the previous year. The 2007 profits
  registered by ADM, the second largest grain
  trader in the world, rose by 65 to a record
  US2.2 billion. Thailands Charoen Pokphand
  Foods, a major player in Asia, is forecasting
  revenue growth of 237 this year.
• The worlds big food processors, some of which
  are commodity traders themselves, are also
  cashing in. Nestlés global sales grew 7 last
  year. We saw this coming, so we hedged by
  forward-buying raw materials, says
  François-Xavier Perroud, Nestlés spokesman.
  Margins are up at Unilever, too. Commodity
  pressures have increased sharply, but we have
  successfully offset these through timely pricing
  action and continued delivery from our savings
  programmes, says Patrick Cescau, Group CEO of
  Unilever. We will not sacrifice our margins and
  market share.
• The food corporations dont seem to be making
  these profits off the back of the retailers. UK
  supermarket Tesco reports profits up 12.3 from
  last year, a record rise. Other major retailers,
  such as Frances Carrefour and the USs Wal-Mart,
  say that food sales are the main factor
  sustaining their profit increases.
• Wal-Marts Mexican division, Wal-Mex, which
  handles a third of overall food sales in Mexico,
  reported an 11 increase in profits for the first
  quarter of 2008. (At the same time Mexicans are
  demonstrating in the streets because they can no
  longer afford to make tortillas).

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Absolute winners food traders

• It seems that nearly every corporate player in
  the global food chain is making a killing from
  the food crisis. The seed and agrochemical
  companies are doing well too. Monsanto, the
  worlds largest seed company, reported a 44
  increase in overall profits in 2007.DuPont, the
  second-largest, said that its 2007 profits from
  seeds increased by 19, while Syngenta, the top
  pesticide manufacturer and third-largest company
  for seeds, saw profits rise 28 in the first
  quarter of 2008.
• Such record profits have nothing to do with any
  new value that these corporations are producing
  and they are not one-off windfalls from a sudden
  shift in supply and demand. Instead, they are a
  reflection of the extreme power that these
  middlemen have accrued through the globalisation
  of the food system.
• Intimately involved with the shaping of the trade
  rules that govern todays food system and tightly
  in control of markets and the ever more complex
  financial systems through which global trade
  operates, these companies are in perfect position
  to turn food scarcity into immense profits.
  People have to eat, whatever the cost.

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Buyer power and the commodities

• Two and a half billion people make their living
  by producing primary agricultural commodities. As
  many as 48 developing countries depend on two
  agricultural commodities export for more than 20
  percent of their total export revenues.
• 38 developing countries depend on a single
  commodity export for more than 50 percent of
  their total export revenues
• Despite recent price rises for some commodities,
  there is debate about how long this peak will
  last, and for many tropical products the long
  term price trend continues to be downwards,
  punctuated by increasingly volatile short term
  price fluctuations.
• In addition, commodity producers also appear to
  be receiving a low and declining proportion of
  the final product price

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A picture, better than much words
Small producers suffer when they are unable to
resist retailer buyer power, forcing them to cut
prices to the point where only the most efficient
can survive. The longer-term effect will be to
threaten the viability even of efficient
producers when investments are undermined by
inability to recover fixed costs as a result of
being forced to price at (shortterm) marginal cost
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Buyer power the banana case study
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Least but not last biofuels!

• In the words of Jean Ziegler, the United Nations
  special rapporteur on the right to food, the
  switch to biofuels at the expense of traditional
  forms of agriculture is nothing less than a
  crime against humanity.
• Initially championed as a means of protecting the
  environment, biofuels have become increasingly
  identified by big business as a profitable
  alternative to increasingly expensive oil. Within
  the space of a few years, biofuel has become a
  booming private industry capable of generating
  large rates of profit.
• Huge tracts of land across the planet have in
  recent years been switched from food crops to the
  production of ethanol or biofuel, aimed primarily
  as a supplement to oil-based gasoline. Next year,
  the use of US corn for ethanol is forecast to
  rise to 114 million tonnesnearly a third of the
  entire projected US crop.

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Least but not last biofuels!

• Although maize production worldwide is growing,
  the increase is being more than absorbed by
  biofuel diversification. According to the World
  Bank, global maize production increased by 51
  million tonnes between 2004 and 2007. During that
  time, biofuel production in the US alone (mostly
  ethanol) rose by 50 million tonnes, absorbing
  almost the entire global increase.
• Subsidised by the US government, American farmers
  have diverted fully 30 percent of corn production
  into the ethanol scheme, driving up the cost of
  other, more expensive, grains that are being
  bought as substitutes for animal feed.
• The European Union, India, Brazil and China all
  have their own targets to increase biofuels. The
  EU has declared that by 2010, 5.75 percent of all
  gasoline sold to motorists in Europe must stem
  from biofuel production.

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Least but not last speculation!

• Increases in global population and the switch to
  bio-fuels are important factors in the rise of
  food prices, these long-term factors are
  important, but they are not the real reasons why
  food prices have doubled or why India is
  rationing rice, or why British farmers are
  killing pigs for which they cant afford
  feedstocks. Its the credit crisis.
• The food crisis has developed over an incredibly
  short space of time, essentially over the past 18
  months
• The reason for food shortages is speculation in
  commodity futures following the collapse of the
  financial derivatives markets. Desperate for
  quick returns, dealers are taking trillions of
  dollars out of equities and mortgage bonds and
  ploughing them into food and raw materials. Its
  called the commodities super-cycle on Wall
  Street, and it is likely to cause starvation on
  an epic scale.

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Least but not last speculation!

• Under conditions of growing debt defaults arising
  from the US subprime crisis, speculators and
  hedge fund groups have increasingly switched
  their investments from high-risk bundled
  securities into so-called stores of value,
  which include gold and oil at one end of the
  spectrum and soft commodities such as corn,
  cocoa and cattle at the other. The article in the
  New Statesman points out that speculators are
  even placing bets on water prices and then
  concludes
• Just like the boom in house prices, commodity
  price inflation feeds on itself. The more prices
  rise, and big profits are made, the more others
  invest, hoping for big returns. Look at the
  financial web sites everyone and their mother is
  piling into commodities.... The trouble is that
  if you are one of the 2.8 billion people, almost
  half the worlds population, who live on less
  than 2 a day, you may pay for these profits with
  your life.
• Investment in soft commodities is currently
  highly recommended by leading market analysts.
  According to Patrick Armstrong, a manager at
  Insight Investment Management in London, Raw
  materials can prove to be the best investment
  class for hedge funds because the market is so
  inefficient. This results in more chances for
  profit.

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Least but not last speculation!

• Much of the international speculation in food
  commodities takes place on the Chicago Stock
  Exchange (CHX), where a number of hedge funds,
  investment banks and pension funds have
  substantially increased their activities in the
  past two years. Since January of this year alone,
  investment activity in the agricultural sector
  has risen by a quarter at the CHX, and, according
  to the Chicago firm Cole Partners, involvement by
  hedge funds in the raw material sector has
  trebled in the past two years to reach a total of
  55 billion.
• Large-scale investors such as hedge and pension
  funds buy futuresshares in basic goods and
  foodstuffs to be delivered at a fixed date in the
  future. When the price of the commodity rises
  significantly between the time of the investment
  and the time of delivery, the investor is able to
  take home a large profit.
• In light of the current food crisis, substantial
  returns of profit are guaranteed. According to
  CHX figures, wheat futures (for delivery in
  December) are expected to rise by at least 73
  percent, soybeans by 52 percent, and soy oil by
  44 percent.
• Major ecological disasters, such as the recent
  drought in Australia, which hit food production
  and drive up basic commodity prices, are good
  news for the corporate investor.

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Least but not last speculation!

• An article headlined Deadly Greed in the
  current edition of the German weekly Der Spiegel
  gives some details of the activities of hedge
  funds in food market speculation. The magazine
  cites the example of the hedge fund Ospraie,
  which is generally regarded as the biggest of the
  management funds currently dealing in basic
  foodstuffs.
• The manager of the fund, Dwight Anderson, is
  nicknamed the raw materials king. Already, in
  the summer of 2006, Anderson was recommending the
  extraordinary profitability of agricultural
  crops to his shareholders. While Ospraie is
  reluctant to publicise its profit levels from
  speculation in basic commodities, a leading
  German investor is less reticent.

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Least but not last speculation!

• Andreas Grünewald started up his Münchner
  Investment Club (MIC) in 1989 with seed capital
  equal to just 15,000. MIC now controls a volume
  of 50 million, of which 15 million is from
  investment in raw materials.
• According to Grünewald, Raw materials are the
  mega-trend of the decade, and his company
  intends to intensify its involvement in both
  water and agricultural stocks. MIC investment in
  wheat alone has already yielded profit levels of
  93 percent for the 2,500 members of the club.
• The Spiegel points out that MIC and its members
  give little thought to the catastrophic
  consequences of their speculative investment
  policy for undeveloped countries. Most of our
  members are rather passive and orientated to
  profit, Grünewald notes.

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Least but not last speculation!

• MIC, with its 50 million, is a minor player
  compared to the finance giant ABN Amro, which
  recently acquired a unique certificate allowing
  it to speculate on behalf of smaller investors on
  the CHX.
• In the wake of the hunger revolts that took place
  a few weeks ago, ABN Amro put out a prospectus
  noting that India has enforced a ban on exports
  of rice, which, together with poor harvests in a
  number of countries, has led to a worldwide
  decline in rice reserves. Now, ABN Amro notes
  in its prospectus, it is possible for the first
  time to have a share in the number one foodstuff
  in Asia.
• According to the Spiegel report, those responding
  to the ABN Amro appeal were able to realise a 20
  percent rate of profit in the space of three
  weeksa period that saw a huge increase in
  investment in rice in Chicago and other major
  centres.

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From food security

• The Right to Food
• The right to food is a fundamental right included
  in the universal Declaration of Human Rights
  (United Nations 1948), under Article 25
  Everyone has the right to a standard of living
  adequate for the health and well-being of himself
  and of his family, including food This right
  was later clarified in the International Covenant
  on Economic, Social and Cultural Rights adopted
  in 1966 and which took effect in 1976 The
  States Parties to the present Covenant recognize
  the right of everyone to an adequate standard of
  living including adequate food, The States
  Parties will take appropriate steps to ensure the
  realization of this right. (Article 11)
• In its General Comment 12, the Committee on
  Economic, Social and Cultural Rights clarified
  this right The right to adequate food is
  realised when every man, woman and child, alone
  or in community with others, has physical and
  economic access at all times to adequate food or
  means for its procurement.
• The Special Rapporteur on the right to Food, Jean
  Ziegler, clarified this definition with the
  following The right to food is the right to
  have regular, permanent and unobstructed access,
  either directly or by means of financial
  purchases, to quantitatively and qualitatively
  adequate and sufficient food corresponding to the
  cultural traditions of the people to which the
  consumer belongs, and ensuring a physical and
  mental, individual and collective, fulfilling and
  dignified life free from anxiety.
  (E/CN.4/2001/53, para. 14).
• Food Security
• The definition of food security adopted at the
  World Food Summit (Rome - 1996) was the
  following Food Security exists when all people,
  at all times, have physical and economic access
  to sufficient, safe and nutritious food to meet
  their dietary needs, as well as to culturally
  acceptable food preferences for an active and
  healthy life.
• Extract from the declaration adopted at the World
  Food Summit held in Rome from 13th to 17th
  November 1999

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To Food Sovereignty!

• Food Sovereignty
• In 2001, Via Campesina specified their definition
  of food sovereignty Food sovereignty is the
  right of peoples to define their own food and
  agriculture to protect and regulate domestic
  agricultural production and trade in order to
  achieve sustainable development objectives to
  determine the extent to which they want to be
  self-reliant to restrict the dumping of products
  in their markets
• Food sovereignty requires
• - Placing priority on food production for
  domestic and local markets, based on peasant and
  family farmer diversified and agro-ecologically
  based production systems
• - Ensuring fair prices for farmers, which means
  the power to protect internal markets from
  low-priced, dumped imports
• - Access to land, water, forests, fishing areas
  and other productive resources through genuine
  redistribution
• Recognition and promotion of womens role in food
  production and equitable access and control over
  productive resources
• - Community control over productive resources, as
  opposed to corporate ownership of land, water,
  and genetic and other resources
• - Protecting seeds, the basis of food and life
  itself, for the free exchange and use of farmers,
  which means no patents on life and a moratorium
  on genetically modified crops and
• - Public investment in support for the productive
  activities of families, and communities, geared
  toward empowerment, local control and production
  of food for people and local markets

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Why do we have to change the rules?

• KPMG 2008 CSR report stated that
• Over the largest 250 companies, nearly 80 issued
  CSR reports
• Theyre only 45 if we consider the whole target
  of the report (2200)
• TNCs are 64.000 worlwide and at least 10 issued
  CSR reports.
• Only half of the top 250 disclosed the details of
  the monitoring for their supply chain code of
  conducts

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When will the poor start getting richer?
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Quick answer from fair trade principlespractices

• Adam Smith prize for fair trade!!
• Helps reduce trade imbalances
• Supports access to credit
• Stabilizes prices
• Establish long term relationship
• Invests part of the income in social goods and
  services
• Offers parallel distribution opportunities
  through the world shops
• More and more builds win-win north-south and
  south partnerships

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Trying to innovate supply chains

• Fair (www.faircoop.it) is a small organization
  born with the mission to create and support
  innovative fair trade and solidary economy supply
  chain schemes.
• MADE in NO (www.made-in-no.com) (as NOvara but
  also as No to exploitation of small scale
  producers), for instance, is a new project that
  connect
• - The Sartoria Giuseppe Bruzzese of Galliate
  (province of Novara, Italy), its a small scale
  enterprise specialized in tailoring swimsuits,
  that lead a group of artisans and manufacturers
  of his territory, to share and analyze impacts of
  the delocalization and liberalization of the
  textile sector.
• Justa Trama, a brand-new textile brand that
  process fibers following ecological and solidary
  criteria, a dream became reality through the
  efforts of workers of different regions of
  Brazil. Over 700 families, farmers and artisans,
  have decided to take the lead of their lives and
  develop an economy that respects and preserves
  the environment and themselves.
• Remei AG that promote organic farming, fairness,
  ecological processing, top quality, and full
  transparency of supply chain linking over 6000
  family farmers in India and Tanzania
• World shops and Solidary purchasing groups in
  Italy (we call them GAS, Gruppi dacquisto
  solidale)

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Result? Small steps

• Clean food and better wages to the brazilian and
  indian farmers
• Access to solidary economy networks and
  opportunities to survive to crisis for brazilian,
  indian and italian producers
• A fantastic organic, fair trade and
  participated cotton underwear!!!

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But a growing solidary economy movement!
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Still hungry?

• Thanks for your patience/Grazie
• per la pazienza!
• Infos monica.disisto_at_faircoop.it
• www.faircoop.it

Professionisti capaci di futuro Monica Di Sisto
vice presidente