Food is the most fundamental of human needs, yet it is the object of speculation in a rigged system. These are among the key findings emerging from the study "Who is profiting from the food crisis?"
The study paints a dire situation: food price increases driven by speculation and "greedflation," extreme profits for big business and a rigged system that favours corporate giants over consumers, workers and farmers.
The fundamental human need - food - has become a commodity, with its price dictated by a handful of corporations. Financial markets determine who goes hungry and who doesn't, through food corporations that manipulate prices. That is not only outrageous, it is morally unacceptable. This new research sheds light on the mechanisms by which this exploitation is taking place and demands political action.
While we are told that price increases are inevitable due to factors beyond our control, this study reveals the extent to which speculative interests and unbridled corporate power drive these hikes. From farm to fork, mega food corporations, global finance and their beneficiaries dominate supply chains, syphoning off colossal profits.
The term "greedflation" encapsulates the essence of the problem we face - the relentless pursuit of industry profits at the expense of people and the planet.
The study finds that the vast profits reaped by companies such as Nestle and Danone, alongside hedge fund and asset management firms like BlackRock, an aggressive investment giant with its tentacles in every aspect of our lives. Food, health, communications, finance, nursing homes, medical products and housing - BlackRock stops at nothing, as long as it is profitable.
This study exposes evidence that the ongoing food price crisis is not the result of food shortages. Instead, prices are propelled by speculative trading and by corporate strategies that seek to profit from the narrative of escalating costs by hiking sales prices. While the food industry giants fill their coffers, ordinary consumers and farmers bear the brunt of rising prices in a calculated outcome of a system that prioritises profit over people.
Our food system, in short, is rigged. It has been restructured to favour massive corporations and financial institutions. This leaves farmers struggling to make a decent living, consumers grappling with soaring food prices, and large corporations raking in the cash. Profits are channelled into financial markets.
The study reveals that the same financial actors who profit from speculation also end up benefiting from increased prices, as ownership of the food sector is concentrated in the hands of global finance. Ultimately, investment advisors like BlackRock and The Vanguard Group are reaping immense profits from the price crisis as more and more people in the EU struggle with food poverty.
The study underscores the urgency for policymakers to take bold and decisive action to tackle this sorry state of affairs and set a course toward a more equitable food system. First and foremost, we must end food speculation with robust regulation and taxes to curtail harmful practices and redirect funds to benefit society as a whole.
Above all, we need to break up the concentrated economic power of multinational food corporations and big financial players that dominate the supply chains. Political support for local and sustainable farming practices is essential. By prioritising small and family-owned farms, we can empower farmers, foster sustainability, and provide consumers with affordable, fresh, and nutritious food. This approach benefits communities and the environment.
Corporations should not be allowed to exploit their market power to set unfair prices. We must introduce and enforce pricing regulations that prevent excessive profit margins. This will help ensure that both farmers and consumers receive a fair share of the value in the food supply chain.
We need greater transparency and accountability for the food industry. Mandatory reporting on profits, supply chain practices, and environmental impact can help consumers make informed choices.
Consumers must be shielded from the whims of speculation and corporate greed. Implementing robust consumer protection measures and oversight can ensure that the food system serves the interests of people, not profits.
Encourage more diverse ownership models, including cooperatives, in the food industry. These models prioritise collective benefit over individual profit, offering a potential solution to the problem of rent-seeking and rent-extraction.
In conclusion, the study by Dr. Sophie van Huellen and Dr. Tomaso Ferrando is a wake-up call for all those concerned with economic justice and human rights. Our food system is not an isolated issue but is interwoven with broader questions of power, fairness, and sustainability. It is our responsibility as lawmakers to champion policies that place people and planet above profit.
It's time to tackle greedflation and realign the food system with the interests of society as a whole.
