Remember our discussion of Monsanto? Its "round up ready" genetically modified seeds are under investigation. Further than that
according to NPR,
Agribusiness as a whole is being examined for anti-trust violations. You know that wonderful vision everyone has of farms? the one with wide pastures for cows, neat rows of vegetables, and a single family running and benefiting from it all? That is a long way from reality. NPR focuses on an independent hog farmer attending the D.C. workshop
Twenty-five years ago, Montgomery County had about 200 independent hog farmers. Foster is one of two now. He's got just one steady buyer for his hogs.
Essentially, packing plants, which turn the piggies into pork, have gotten huge, demanding that farmers sell the hogs to them for a specific low price (think
Walmart) which, in effect keeps pork prices down, but also favors huge industrial farms over small family run places. The suppliers of feed and other items
necessary for pig production have also gotten huge, demanding that the farmer pay them a certain, high amount for their products, again favoring larger operations.
That leaves Foster trapped between giants — a situation he blames on "hands-off" economic policy.
Why is this of concern? Certainly this system is good for the consumer, we get cheap chorizo and chops. But ultimately it is bad for the economy, as with fewer farms packing plants and feed suppliers, there is less competition, and the large Agribusinesses can set any price and any quality on their products, giving little recourse to the consumer. There is also a sense of waste. On a huge farm, a sick pig can die: there are several thousands more so there is very little loss according to the company. On a smaller operation, a sick pig will be taken care of, one pig out of a hundred is a much bigger loss. Smaller farms have people living on them, people who want their children and grandchildren to do the same, so they're probably more willing to practice sustainability than a huge agribusiness which will just move its production once the land becomes so polluted that those who live around it start to complain. The Washington D.C workshop is a good first step, the same way its urban policy workshop was a good first step. But, the question remains: are they going to do anything?
This article has alot of great points. I like the comparison with Walmart because it's true. He is being forced to sell for low prices, even if input prices are high.. that is exactly what we were talking about a couple weeks ago in class with price ceiling. The company is forced to keep prices low, even if input prices are high. This leaves them with less profit, which they will still need to pay for the next batch of inputs that they have to buy. Its a vicious cycle that leaves teh firm/farmer hurting. I also thin you made a good point about sustainability and the long-term effect of big-business dsupport on teh environment.
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I agree with the fact that small business owners are most likely to take care of their animals than big business. Big businesses are in the market for the money and benefits while small farm families are there so they can pass down the farm and keep on growing. This cycle is affecting both firms and small farms because companies like Wal-Mart sell their products really cheap but demand a lower price from them. Yes, it’s good for the people but it’s hurting those who are providing the product. E.A
ReplyDeleteEconomies of scale such as those in the agribusiness have lots of advantages and disadvantages. These companies are solely concerned with making a profit and increasing production. They aren't concerned about the impacts that they make on households. Although they make products cheaper for consumers, they reduce the variety offered to consumers and also reduce the number of competitors in the market.
ReplyDeleteOn the other hand, these economies of scale also provide employment for a large number of people. A
It really is unfortunate to see these smaller farmers have to lay down at the mercy of these bigger, more efficient plants. I also agree with the Walmart reference and think that it is very true. I guess it really comes down to who we want to disappoint more, the farmers or the consumers who buy the product. A
ReplyDeleteThe government not only doesn't help the small American farmer, it actually helps the huge agrobusinesses. Large factory farms recieve lots of tax write offs and subsities, which make it even harded for small farms to compete. I think that anti-trust laws, which we already have, should be enforced on large scale factory farms, and we should stop subsidizing farms that have a harmful effect on the economy, environment, and the surrounding area.
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I'm a huge fan of community supported agriculture. People in the community can buy a subscription, and the local farm will deliver a certain amount of the harvest a certain number of times a year. No one demands a low price from the farmer. It's not as lucrative an operation as a huge farm, but it can pay the bills and you won't get strong armed into selling for too low.
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