5.9 The Global System of Agriculture

Introduction

The global system of agriculture refers to the complex network of economic, social, and environmental factors that shape the production, distribution, and consumption of agricultural goods around the world. It includes the various actors and institutions involved in the production, processing, and distribution of agricultural goods, as well as the policies and regulations that govern these activities.

The global system of agriculture is characterized by a high degree of interdependence and interconnectedness. Agricultural goods are produced in one part of the world, processed and packaged in another, and consumed in still another. This system is driven by a combination of factors, including market demand, technological advances, and government policies.

The global system of agriculture has had a significant impact on the environment, including deforestation, soil degradation, and water pollution. It has also contributed to social and economic inequalities, as small farmers and rural communities in developing countries often face challenges in competing with larger, more efficient producers in developed countries. Efforts to address these issues and promote more sustainable and equitable forms of agriculture are ongoing.

Vocabulary

Export Commodity

A commodity that is produced in one country and sold to another country for export

Ex: Wheat, cotton, and oil

Luxury Crop

A crop that is grown for its high value and is not necessary for basic human sustenance. Examples of luxury crops include coffee, cocoa, and tobacco

Ex: Coffee, cocoa, and tobacco

Neocolonialism

The economic and political control of a developing country by a more powerful, external country, often through indirect means such as corporate investment and trade agreements

Ex: A common example of neocolonialism is a multinational corporation based in a developed country investing in and taking control of natural resources in a developing country, such as oil in Africa or timber in South America.

Fair Trade Agreement

A trade agreement that promotes the fair treatment of workers and the sustainable production of goods, often by establishing minimum prices for certain products and requiring environmentally sustainable practices

Ex: The North American Free Trade Agreement (NAFTA) and the European Union's Common Agricultural Policy are examples of fair trade agreements.

Subsidy

A financial support provided by a government to a business or individual, typically to promote a specific economic or social objective

Ex: The US government providing financial support to farmers through the Farm Bill.

Infrastructure

The basic physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise

Ex: Roads, bridges, water treatment plants, and schools.

Global Supply Chains

Global supply chains refer to the networks of organizations, people, activities, information, and resources involved in the production, handling, and distribution of goods and services from raw materials to end consumers. They involve the movement of goods and services from suppliers and manufacturers to intermediaries and ultimately to consumers, often across national borders.

Global supply chains have become increasingly complex and interconnected in recent years, due in part to advances in transportation and communication technologies, as well as the liberalization of trade and investment policies. They have helped to drive economic growth and increase efficiency by allowing companies to specialize in particular tasks and to access a wider range of raw materials, labor, and markets.

However, global supply chains also pose challenges, including environmental impacts, labor abuses, and social and economic inequalities. Efforts to address these issues and promote more sustainable and equitable supply chains are ongoing.

Examples

Here is an example of a global supply chain:

1. A company in the United States decides to produce a new type of smartphone.
2. The company sources the raw materials for the phone, such as metals and plastics, from suppliers around the world.
3. The company contracts with manufacturers in different countries, such as China and Vietnam, to assemble the various components of the phone.
4. The finished phones are shipped to distribution centers in various parts of the world, where they are stored until they are needed.
5. When a customer in Germany orders a phone online, the phone is shipped from a distribution center in Europe to the customer's address.
6. The customer receives the phone and begins using it, completing the global supply chain.

This example illustrates how a global supply chain involves a complex network of organizations, people, activities, and resources that span multiple countries and regions. It also demonstrates how advances in transportation and communication technologies have made it possible for goods to be produced and distributed on a global scale.

Brand Examples

Some examples of global supply chain brands include:

1. Alibaba Group - This Chinese company operates an online and mobile commerce platform that connects buyers and sellers worldwide.

2. Amazon - This American e-commerce giant has a vast global supply chain network, with fulfillment centers and distribution centers located around the world.

3. DHL - This German company is a global leader in logistics and supply chain management, with a presence in over 220 countries and territories.

4. FedEx - This American courier company operates a global network of transportation, e-commerce, and supply chain management services.

5. UPS - This American courier company also operates a global supply chain network, offering logistics and transportation services to businesses and consumers worldwide.

Patterns of Global Food Distribution

There are several patterns of global food distribution that have emerged over time:

1. North-South divide: Developed countries in the Northern Hemisphere tend to produce a surplus of food and export it to developing countries in the Southern Hemisphere, which often have a deficit in food production. This has contributed to a dependence on imported food in some developing countries and a reliance on exports in some developed countries.
2. Urban-rural divide: Urban areas, which tend to be more economically developed, often have greater access to a diverse range of food compared to rural areas, which may be isolated and lack infrastructure. This can lead to a disparity in the availability and quality of food between urban and rural areas.
3. Rich-poor divide: Wealthier people tend to have greater access to a wider range of higher-quality food compared to poorer people, who may be limited by their income and access to markets. This can lead to differences in diet and nutrition between wealthier and poorer populations.
4. Intra-regional trade: Within regions, there is often a greater flow of food between countries. For example, countries in the European Union have a high level of food trade among themselves.
5. Seasonal fluctuations: The availability and price of food can vary depending on the season and the location. For example, certain types of fruit and vegetables may be more readily available in the summer when they are in season, while other types of food may be more expensive during this time due to a decrease in supply.

What Affects Patterns of Global Food Distribution?

There are several factors that can affect patterns of global food distribution:

1. Transportation: The availability of transportation infrastructure and technology can influence the distribution of food. For example, countries with well-developed transportation systems may be able to import and export food more easily than countries with less developed systems.
2. Trade policies: Governments can influence the distribution of food through trade policies, such as tariffs and quotas, that regulate the flow of goods across national borders.
3. Market demand: The demand for certain types of food in different parts of the world can affect global distribution patterns. For example, if there is a high demand for tropical fruit in Europe, this may lead to an increase in the import of such fruit from tropical countries.
4. Political and economic instability: Instability in a country, such as conflict or economic recession, can disrupt food production and distribution.
5. Climate and natural disasters: Extreme weather events and natural disasters, such as droughts and hurricanes, can affect food production and distribution in affected areas.
6. Agricultural practices: Different agricultural practices, such as the use of pesticides or irrigation, can affect the availability and quality of food.
7. Food safety regulations: Governments can establish food safety regulations that affect the distribution of food within and between countries.
8. Food waste: A significant amount of food is wasted at various points in the supply chain, from production to distribution to consumption. This can affect global food distribution patterns.

Here is an example of patterns of global food distribution:

1. A drought in South America reduces the production of soybeans, which is a major export crop.
2. As a result, the supply of soybeans on the global market decreases and the price increases.
3. Countries that rely heavily on soybean imports, such as China and Japan, may have to look for alternative sources of protein or pay more for soybeans.
4. At the same time, countries with a surplus of soybeans, such as the United States and Brazil, may experience an increase in demand for their exports.
5. The changes in the supply and demand of soybeans can affect the distribution of other products that use soybeans as an input, such as animal feed and vegetable oil. This example illustrates how events in one part of the world can have a ripple effect on global food distribution patterns. It also shows how market forces, such as supply and demand, can influence the distribution of food.

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