The influence of globalisation on the food industry such as
increased demand global tastes
Globalisation is the growing interconnectedness, integration and
interdependent of the world’s economies, people and cultures as a result
of increasing trade, cultural exchange and flows of people, ideas, services
and goods
What does globalisation lead to?
Urbanisation
Migration
Trade liberalisation (national food systems are increasingly
interconnected due to trade and investment, referred to as global
value chains)
Foreign Direct Investment
What has contributed to the globalisation of the food supply chain?
Lower transport costs economies of scale
Greater migration of people migrant labourers
Improves access to global food sources
Technology e.g. fertilisers, machinery
Impact on the food industry
Increased demand
Changing global tastes i.e. do not have to rely on certain foods
being in season as they can be sourced from across the globe
Agribusiness
o A large-scale farming system run as a business
o Agrichemicals, GM crop seeds, farm machinery, distribution
TNCs
o A parent enterprise in one country, controls entities in different
countries
o Work at an international scale
o Some are involved in agribusinesses e.g. Coca Cola, Nestle
Opportunities that have been created by the globalisation of the
food industry
Technological innovation
Has aided the globalisation of the food chain whilst also being a result of it
i.e. technology is what has allowed globalisation to happen but also is a
result of globalisation
, Global sharing of technological advancements has increased food
production
Differentially benefits wealthy farmers who have the capital to access the
new technology. We must ensure that it is not simply a tool for wealthy
farmers to increase profits without working to increase global food
security
The differential access to technology can contribute to inequalities
between regions, having a negative impact on countries that cannot keep
pace with the change e.g. farmers in Ethiopia have suffered from the
increasingly production of palm oil and coffee in Asia which means it is
forced out of the market
Occurs at different scales
Small scale technological innovation
Appropriate technology refers to the implementation of technology that is
suited to the needs, skills and knowledge of the people who live in a
community to ensure that the positive impacts are sustainable over time
and can utilise the area’s assets and create a long-term impact
Low-cost appropriate technology
Fertiliser Deep Displacement e.g. Niger, Burkina Faso
Uses a specialised fertiliser called briquette which is planted
7-10 cm below the soil
Slowly releases nitrogen
Deep displacement = less lost by run off
Positives: less fertiliser required, increased crop yield, doesn’t
require many inputs after they have been implemented i.e.
not capital intensive
Mobile apps
Mobile phone ownership has increased by 811% between 2002 and 2014
SokoniSMS64 in Kenya
Allows farmer to gain access to information about crop prices
through texts before they travel long distances to markets
Allows them to negotiate deals with traders and improve their
timings of getting crops to market
Large Scale technological innovation
Use of fertiliser originated in the west and has since been spread e.g. by
the Green revolution
Fertilisers are used to increase crop yields as they contain chemicals
needed for crop growth e.g. some are nitrogen based (needed to make
chlorophyll, component of amino acids), some are phosphate based
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