International trade regulations

Historically, links between farmers and food producers have been tenuous, with many companies having little knowledge of how and where their ingredients are grown.

As the prices of raw materials soar – from the barley used to make beer or the cocoa used to make chocolate – leading brewers and food manufacturers from Cadbury Schweppes to Diageo are increasingly recognising their businesses will benefit from investment in agriculture.

Jenny Wiggins reports in the Financial Times on the growning investment in agriculture by multinationals.

Global trade and the food crisis

The campaigning organisation 'War on Want' is challenging the global rules that have contributed to the current food crisis. They work with partner groups across the world to mitigate the effects of decades of global 'free trade' rules set by a World Trade Organisation lobbied by powerful countries. The current crisis has been exacerbated by the destabilising of government support, leaving small farmers unable to respond to the natural fluctuations in food production.

War on Want is involved in projects such as the one run by MONLAR, their Sri Lankan partner organisation. By providing farmers with training, seeds, equipment and knowledge, they have helped smallholders grow all their own food, insulating them from the effects of rising food prices.

The “Agriculture for Development” report by the World Bank says greater investment in agriculture in developing countries is needed in order to achieve goals of reducing poverty and hunger. It also recommends measures for more sustainable and environmentally friendly production systems, to combat problems of pollution and deforestation, as well as subsidy reform in developed countries. While 75% of the world’s poor live in rural areas only 4% of development assistance goes into agriculture in developing countries.

Mozambique's lost cashew nut industry

As world trade talks are set to begin in Cancun, Mexico, developing countries like Mozambique say it is unfair that they are forbidden by the World Bank to subsidise their agriculture while Western countries spend billions on their farmers.

Mozambique's cashew nut industry used to be one of the largest in the world. And crucially for a country which is among the poorest, they could process the nuts as well, adding value and profits to the raw materials. But the nut industry collapsed after the World Bank insisted that Mozambique end subsidies as part of a tough austerity package.

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Cashew Nuts: South-South Trade and the Processing Dilemma

Article examining the benefits and pitfalls of cashew production for developing countries.

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Fish stocks recover as conservation measures take effect

Global efforts to combat overfishing are starting to turn the tide to allow some fish stocks to recover, new analysis shows. Research from an international team of scientists shows that a handful of major fisheries across the world have managed to reduce the rate at which fish are exploited.

The experts say their study offers hope that overfishing can be brought under control, but they warn that fishermen in Ireland and the North Sea are still catching too many fish to allow stocks to recover. Some 63% of assessed fish stocks worldwide still require rebuilding, the scientists report.

"The rich world is at last rediscovering the huge poverty-fighting potential of agriculture," says Gawain Kripke of Oxfam International. "Three-quarters of all poor people in developing countries live in rural areas and women make up the vast majority. Women produce more than half of all the food grown worldwide, yet own only two per cent of all land and get only one per cent of lending to agriculture."

"The World Bank has long insisted that as a condition of receiving its aid, poor countries have to liberalise their agricultural sectors before they receive its money. This has left millions of poor farmers without assistance to face markets that are very distorted in favour of rich country exporters. International trade rules are rigged in favour of rich countries preventing developing countries from reaping the economic growth that agriculture offers." he said.

"We need to give agriculture more prominence across the board" stated World Bank president R. Zoellick, launching the annual World Development Report for 2008. The report notes that while 75% of the world's poor live in rural areas, only 4% of official development assistance goes to agriculture. Growth in agriculture is about four times more effective in reducing poverty than growth in other sectors. Rich countries need to reform policies which harm the poor, for example, "it is vital that the United States reduce cotton subsidies, which depress prices for African smallholders". The emergence of biofuels is also a cause for concern as their growth drives up food prices.

The effects of ethical working codes

A major report from the Institute of Development Studies (IDS) found that ethical codes of labour practice along the food supply chain have had positive impacts on issues such as health and safety, but more could be achieved.

The report investigated the impacts of codes of practice implemented by members of the Ethical Trading Initiative (ETI). These codes have successfully introduced better working hours, safer use of chemicals and training on emergency procedures. However, there are still issues of discrimination, harsh treatment and regular employment to address.

ETI member companies reached over 3 million workers in 2006, and their activities are increasing. A ongoing issue being addressed by the ETI is how migrant and casual workers can benefit from ethical trade.