The Future of Food and Farming: Challenges and choices for global sustainability
have become dominant in developed-country markets and which have an increased presence in emerging markets in middle-income countries233 234. The growth and concentration of corporate power in the food sector has led to a wide debate over the ways in which transnational corporations (TNCs) exercise power and influence over the global food system235; with particular concerns over: ●●
The power TNCs exercise in both retail markets and in purchase contracts with suppliers236 (including through the proliferation of public and private standards237).
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The allocation of intellectual property (IP) rights to a relatively small number of companies dominating agricultural R&D238.
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The transparency with which TNCs operate and exercise power within and over national governments and multilateral governance rules and regulations239.
In response to these concerns it has been argued that: ●●
TNC consolidation and integration of supply chains has led to a more resilient food system as a whole, providing cheaper, more diverse and more readily available goods to the consumer240.
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The high costs of research, development and innovation in the food system require very significant resources for investment and thus it is not surprising that only large companies have sufficient economies of scale to create significant levels of IP241.
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TNCs would be equally criticised if they did not engage with national governments and multilateral institutions in agreeing the rules of food system governance.
Provided there are a sufficient number of major companies in each area and region of the food system so as not to threaten competition, and provided that all organisations adhere to high international standards of corporate governance, it does not seem necessary to limit the concentration of companies242. However, given the above concerns, continuing open and transparent dialogue, and increased collaboration between governments, the private sector and civil society, with commitments to robust standards of action and performance to achieve this, will be essential to achieve future sustainability and equity in the global food supply chain. At the workshop Foresight held on Developments in the Global Food Supply Chain it was concluded that there is very considerable scope for the food industry to play a significant role in facilitating greater sustainability. While acknowledging that competitive constraints, pressure for quick returns on investment and fast-changing consumer preferences are often overriding drivers, there was also a recognition of the need to increase resilience to and preparedness for the future challenges being considered by the Project and to anticipate the growing health and environmental concerns that are driving some high‑value segments of consumer demand. The workshop explored a number of promising initiatives currently undertaken by companies to improve the sustainability of their own processes within the food supply chain (see, for example, Box 4.10) Extending best practice in this way has the potential to radically improve sustainability across the food system. To encourage this shift, food industry leaders have called for a ‘level playing field’ in standardising sustainability best practice243. These behavioural shifts will entail government support
233 Fuchs et al. (2009) 234 The EU and the US have led the development of the organised retail sector, but large indigenous retail chains now command a substantial proportion of the retail market in Brazil and China (where in the latter companies are partly state-owned). 235 Clapp and Fuchs (2009) 236 Food Ethics Council (2010) 237 See Section 4.5.4 and Project Report C3 (Annex E refers) 238 Driver Review DR8 (Annex E refers) 239 Clapp and Fuchs (2009) 240 DR10B (Annex E refers) 241 Bigman (2002) 242 Though, as described earlier in this chapter, finding new ways to diversify the creation and use of IP to the benefit of low-income countries is still of prime importance. 243 See W2 (Annex E refers) 100