Globalization of Agriculture

When considering the globalization of agriculture, there are both good and bad aspects that must be taken into account. The advocates of globalization usually include corporations and affluent people who enjoy spending less on groceries. The opponents of globalization are family farmers and the people of developing countries. Good or bad, the globalization of agriculture affects everyone.

Globalization of agriculture is the idea that countries should trade with each other, and specialize in a realm of production that that particular country is best at. This specialization and international trading can lead to increased efficiency and higher yields. Because of trading networks, like the World Trade Organization, countries cannot put trading restraints on other countries. Globalization means that one country can focus on one particular facet of agriculture. This focus can lead to great wealth when the aspect at hand is a lucrative one. Already rich countries are the countries that engage in the more profitable types of Agra-business. Developed countries who have manufacturing plants, and the like, have large profit margins. A bushel or corn flakes sells exponentially more than a bushel of corn.

But with the same aspects that make globalization a good thing for some people, also make it a bad thing for allot of people. Although the globalization of agriculture is causing the profit margins for developed countries to increase significantly, it is causing the gap between the rich and poor to widen. This is because poor countries do not have the capital to start up their own processing plants. Processing plants represent the secondary market, which is far more profitable then the primary market of actual farming. Poor countries also are not able to give their agriculture companies loans because it violates rules set into place by the World Trade Organization. The World Trade Organization (WTO) puts additional constraints on countries. Countries are not allowed to reject imported commodities that are considered hazardous because it violates trade agreements set into place by the WTO. Family farms are also hurt by globalization because they cannot compete with the low prices of global agriculture companies. Globalization is much more efficient because it focuses on one crop, while family farms support diversity, which decreases efficiency. While corporate ownership of farms provides a uniform, efficient type of farming, many things are thrown to the wayside. Considered negligible by agribusinesses is the affect of hormones, fertilizers, and pesticides on the environment and animal welfare. Family farmers as well as those in developing countries are failing because they place quality over quantity.

Globalization has been boost to the green revolution in recent years, increasing efficiency and the amount of food produced. But this mass amount of food tends to be delivered where it is needed the least - in the most affluent countries in the world. Rich companies pay cents on the dollar to get food and then process it into an extremely profitable commodity. The profit margin gap is increasing between farmers and processors as well as between the poor and the rich. Globalization is a good thing because of its increased efficiency and food quantity, but in order for the profits of it to be reaped properly, a correct ratio of profit and worth must be put into place.

We all experience globalization. We get most of our fruit in the winter from South American countries and allot of other food is imported as well. We have trading agreements with other countries that strengthen our economy, as well as the worlds. We are able to support other countries who are in need of a commodity, but unable to grow it themselves, and vice-versa. Also, it is because of globalization that we have such cheap groceries. The producers are able to produce it cheaper, so we get to buy it cheaper.