Category Archives: Corporate control of food

agroecology, Argentina, Capitalism, Churchill Trip 2014, Collaborative cultures and networks, Community gardening, Corporate control of food, Democratic food systems, Ecology, economics, fair food movement, Fair Food systems, Food policy, Local and regional food economies, Supermarket Duopoly, Urban agriculture

Food Tank interviews Dr Nick Rose

Republished from Foodtank – original article here – Interview with Dr. Nick Rose, Australian Food System Activist – Food Tank

Food Tank recently had the opportunity to interview Dr. Nick Rose, Executive Director at Sustain, about the health of Australia’s food system and his view on what are the key factors impacting on a healthy and resilient food system in Australia.

Food Tank (FT): What are some of the biggest opportunities to support Australia’s food system?

Nick Rose (NR): The single biggest opportunity lies in the field of education, with the introduction for 2017 of a paddock-to-plate food literacy curriculum, Food Studies, as an elective for all Grade 11 and 12 students in Victoria, Australia’s second-most populous state. As a result, in a few years, as many as 10,000 students could be taking Food Studies. These students will form a growing cohort of capable tertiary graduates who can inform and lead the development of good food policy at the local, state and federal government levels. If other states follow Victoria’s lead and introduce a Food Studies curriculum, the wave of food systems change generated by tens of thousands of highly informed and motivated youth will, I think, be irresistible.

Other significant opportunities include the embrace and resourcing of sustainable and regenerative forms of food production, as well as the expansion of new and fair distribution systems and enterprises, such as farmers markets and food hubs. Legislative and planning protections for Australia’s major food bowl areas close to capital cities are sorely needed. Governments at all levels have a crucial role to play in these and other necessary shifts.

FT: With increasing innovation in the food system and networking technologies, what are you most excited about?

NR: I’m excited about creating a dynamic, multi-layered, and searchable food systems directory that will, for the first time, reveal the scale and breadth of Australia’s growing food systems movement. The development of this directory is a project that Sustain is now working on, with the support of the Myer Foundation, and we’re looking forward to making it a reality in 2017.

FT: From your extensive travels, what are some successful innovations in other countries that could be applied in Australia to improve the food system?

NR: I have a strong personal interest in the great potential of urban agriculture to transform the food system as a whole, and I saw dozens of examples of innovations on my Churchill Fellowship visiting the mid-west United States, Toronto, and Argentina in July–September 2014. Those innovations include: community urban land trusts to make city and peri-urban land available for sustainable and intensive food production, education, and social justice; capturing large organic waste streams to support sustainable and highly productive urban agricultural systems; planning overlays and zoning to facilitate commercial-scale urban agriculture production; the multiplication of inner-city farmers markets with dedicated space for urban farmers; the establishment of small-scale artisanal food processing facilities to incubate food entrepreneurs; the facilitation of city-wide urban agricultural networks; and, the development of comprehensive and inclusive urban agricultural strategies that recognize, value, and support the work of urban farmers and the organizations they are embedded in.

FT: How do organizations and individuals get involved in supporting a healthy and resilient food system in Australia?

NR: There are so many points of entry for individuals, from growing some herbs and vegetables, to supporting a kitchen garden at your local school (as a parent) and, or, your local community garden (more than 500 across Australia). Also, shopping at your local farmers market (now more than 180 in Australia) and, or, fair food enterprise, supporting local and sustainable producers wherever possible. Major change is needed at the level of policy, legislation and regulation, and here organizations can make a difference by joining one of the many local and regional food alliances that are in existence around Australia, or forming one if it doesn’t already exist in your region.

FT: If you could change one thing in Australia to improve its food system, what would it be?

NR: The single biggest obstacle in my view is the concentration of economic and political power represented by the supermarket duopoly—Coles and Woolworths. In the past 40 years, the grocery market share of these two companies has more than doubled to 75 percent. Meanwhile, Australia has lost more than 40 percent of its farmers, with the average age of farmers now approaching 60 years, compared to 42 years for the workforce as a whole. These two trends are deeply connected. As a country, we need to confront our tolerance for oligopolistic concentrations of political-economic power, and the supermarkets present the most urgent task, regarding the long-term sustainability and fairness of our food system.

FT: What personally drives your work to improve Australia’s food system?

NR: My drive stems from years living in Guatemala (2000–2006). It was here my political consciousness was awakened on realizing that the deaths of 200,000 Guatemalans, mostly Mayan indigenous peoples, could be traced to the refusal by the United Fruit Corporation and the then U.S. government of President Eisenhower to countenance even the partial redistribution of its massive landholdings and excessive wealth. This story is all documented in Bitter Fruit: The Untold Story of the CIA in Guatemala. It was a book that changed my life.

I believe that in working to improve Australia’s food system, I am part of a huge and growing global movement to transform the world’s food system. I dedicate my efforts to the memory of those who died in the struggle for a fair Guatemala.

agroecology, Corporate control of food, economics, fair food movement, Local and regional food economies, Supermarket Duopoly, Urban agriculture

”In the mainstream Australian food system, it’s the supermarkets that hold most of the power”

Republished from Gourmet Traveller – original article at Dr Nick Rose of Sustain: The Australian Food Network on our broken food systems | Gourmet Traveller

I have been directly inspired by the visionary work of Dr Nick Rose, as he motivates all of us to celebrate and raise awareness of Australia’s urban agricultural movement. Nick is an excellent communicator, with an innate ability to empower those around him.

Together with South Eveleigh’s Aboriginal educator and environmentalist Clarence Slockee (Cudgenburra/Bundjalung), I can’t wait to help Nick spread his important message about food sovereignty within South Eveleigh and beyond.– Kylie Kwong

Dr Nick Rose on food sovereignty and fair food systems

Food sovereignty can be a tricky concept to wrap your head around. But it’s important that we do, says Dr Nick Rose, executive director of Sustain: The Australian Food Network. At its most simple, he says, food sovereignty is about creating a fair food system.”The idea of a fair food system is one that’s fair for farmers – they get a fair price for their produce. It’s fair for consumers – they get affordable food. And it’s fair for the land – it’s ethical and involves caring for country.”For too long, Dr Rose explains, Australians have taken their food system for granted, without thinking about where their food comes from, who grows it, or the impact it has on the land.

“We were left a legacy. When we came here as British colonisers, there was a food bowl here. Bruce Pascoe talks about this; there was a managed landscape that Indigenous people had been caring for, for tens of thousands of years. We’ve been here 240 years and we have, in many ways, devastated large swathes of the country.”

Nick Rose

His mission, through Sustain, is to design and build a fair food system and work alongside communities, councils and organisations to become empowered food citizens.

“We work with local and state governments to say we need to consciously shape our food and farming system and not just leave the dominant actors – the supermarkets in particular – to make all these decisions. They are making them with obvious interests at stake, responding to their shareholders. Those interests don’t correspond to the health and welfare of Australians, nor to the long-term sustainability of the Australian country … That’s what food sovereignty is all about. It’s about feeding people well and caring for the country.”

And why is that so important? Because food and diet is at the heart of good health, for a start. “The biggest burden on population health is diet now; it’s overtaken tobacco and alcohol as the biggest risk factor for chronic disease and early death. That’s a really, really big challenge,” says Dr Rose.

Food sovereignty is also critical in the fight against food poverty and ensuring future food security.

“The issues facing farmers have been decades in the making. We talk about farmers being price takers instead of price makers, which means that in the mainstream Australian food system, it’s the supermarkets that hold most of the power in terms of price setting and contractual arrangements.”

It’s a problem for the country in terms of food security because if all the farmers are getting older and all the young people aren’t farming, who’s going to grow our food in the future?”

And then, of course, there is climate change, which is making farming less viable and accelerating unsustainable forms of land management.

“These are really big, entrenched problems in the way that we relate to the country and manage the land. There’s a really big shift that has to happen, not just with Australian farmers but with the whole country. We need to understand this continent in a more profound way and engage in a process of dialogue and truth-telling with our First Nations peoples and understand what it is to live here and live here sustainably. Managing the land and caring for country and creating habitat for all the diverse creatures that make our life possible. Agriculture is such a big driver of land use change in Australia so this really comes back to the food system.”

But while the challenges are big, they are not insurmountable, says Dr Rose. And there is every reason to feel hopeful and optimistic about the future.

“The work I have been involved in over the past decade, I have seen a lot of things change. A lot more people have been involved – at a policy level, a lot of local governments are now getting involved. COVID was a bit of a wake-up call for a lot of people; a moment of rupture which is going to push things forward positively.”

It may be the case that the darkest hour is before the dawn. There are plenty of reasons to feel depressed and pessimistic but I choose to believe there is a lot of energy and momentum for change. The future is unwritten, it’s up to us to write it.”

Corporate control of food, Democratic food systems, economics, fair food movement, Food sovereignty, Growth paradigm

Confronting Corporate Power with Democracy and Solidarity

Democracy and Solidarity

This is the text of my address to the Public Meeting on the Kernot Dairy, Gippsland, 12.5.15, held at RMIT Building 56, Queensberry St, Melb. 50 people were in attendance. 

We’re here tonight for a political meeting. This is not about party politics; rather, it’s about politics in the deep sense, of who holds power in our society, and how that power is exercised, for whose benefit, and with what consequences.

That’s what we’re here to discuss tonight, in the very specific context of a clear intention by one corporation to transform a Gippsland dairy farm into a highly intensified system of production.

 Our food system is facing a series of crises. One of them is the exploitation of vulnerable workers. Some of you may have seen the Four Corners program, Slaving Away, on Monday 4th May. It exposed the distressing and disturbing reality that significant portions of our cheap food system depend on the ruthless exploitation and abuse of migrant workers, most of whom are in this country on short-term working visas.

It’s all too easy in such circumstances to point the finger of blame at the few ‘rotten apples’, the unscrupulous labour hire contractors, or the few large farms that use their services. But the real beneficiaries are the major supermarkets, and the fast food companies, that buy these products at the lowest possible cost.

As Tammi wrote last week on the AFSA website, what this Four Corners program actually revealed is a system that’s failing, at many levels, to secure the well-being of all. These migrant workers are experiencing truly appalling treatment, without any doubt. But let’s not forget the millions of chickens and pigs in their cages in the dozens of factory farms that already exist in Australia. Let’s not forget the 1 million-plus Australians who experience food insecurity on a regular basis. Let’s not forget the millions more who suffer chronic pain and early death as a result of type 2 diabetes, and other diseases of diets based on cheap and empty calories.

WTF?
WTF?

Let’s not forget the farmers, who on average receive only 10 cents of every dollars’ worth of food they produce; and who feel so devalued by our cheap food culture, that they experience rates of suicide and depression at twice the national average.

This food system is failing the great majority of people, in this country and worldwide, and the non-human species that are caught up in its voracious maw of ceaseless production. But it’s not failing the handful of corporations that make a handsome profit off the misery of the majority.

And that’s the problem we face. We’ve inherited a system that’s primarily designed and operated to feed corporate profit, rather than feed people fairly. It’s all about production, for production’s sake, regardless of the consequences. That’s what the Kernot dairy issue represents, as we’ll hear shortly. It’s a choice for all of us as to what food system we want for our country: one that primarily serves large corporations and banks; or one that serves people and ecosystems.

What factory farming of dairy cattle looks like...
What factory farming of dairy cattle looks like…

* * * * *

We’re also hear tonight to reclaim our democratic culture, which lately has been under increasing strain. We have a journalist summarily sacked for committing the cardinal sin of criticizing the sanctification of Anzac Day. We have campaigning environmental organisations like Friends of the Earth under financial attack because they dare to mobilise communities to question the rush to frack our fertile farmlands. We have moves to criminalise animal welfare groups who dare to expose the cruelty meted out in factory farms.

TPP

At such times, it’s important that as many of us as possible stand up and speak the truth as we know it. Food sovereignty, we say, is the fundamental right of communities to democratically determine our food and farming systems. To participate in the making of decisions about who owns our farmland, and what sort of production systems should be employed. What should be grown or raised, and where and under what terms should the produce be sold? For the past few decades we have delegated all these decisions to a mythical and apparently all-powerful entity known as ‘the market’. But the market, far from being ‘free’ and a ‘level playing field’, is actually structured in favour of the largest and most powerful corporations.

How do we begin to change this? By gathering together in forums such as this, to hear directly from the producers and communities who are at the sharp end of these processes of ‘free trade’ and ‘globalisation’. By listening, and becoming informed of the issues, and what’s at stake.

And by taking action. Because that’s what this meeting is also about. Solidarity. Standing together with those who are trying to sound the alarm on what looks like a headlong rush to the intensification of dairy farming in Gippsland and elsewhere in Victoria. We have several people who’ve made the journey up the freeway to be with us tonight and share their stories with us. I’d like to invite them all to stand up now – and invite you all to give them a very warm round of applause. You are very welcome here; and we have come here tonight to support you.

But it’s also very important to remember that although the corporation that is planning the intensification of this dairy in Kernot is Chinese, we have no quarrel with the people of China. Food sovereignty is a global movement that embraces hundreds of millions of people in more than 80 countries, and it is firmly grounded in the principles of international solidarity and non-discrimination. What we oppose is a food system that privileges short-term financial gain for a tiny minority, over the long-term well-being of the vast majority of humanity, non-human species, and ecosystems everywhere. Ultimately we have one home, and it’s called Earth. And our responsibility is to adopt an ethic and a practice of care, and love, towards each other. Not only those closest to us, but those far away as well.

Corporate control of food, economics, Growth paradigm

Berry Beware

Berry Beware

 The widespread coverage of outbreaks of Hepatitis A in all eastern States and now in WA, linked to faecal contamination of frozen raspberries packaged in China, has proven a boon for Australian producers, with a surge in demand for local produce.

As someone who has been writing and speaking about the benefits of local food economies for many years, and warning about the risks and downsides of an increasingly globalised food system, these events feel like vindication.

The tragedy of course is that a number of individuals – and there will likely be many more – have had to suffer in order to raise these issues to the top of the political agenda.

That is unfortunately so often the case, however. Until something becomes a ‘media storm’, politicians see no need to act.

 

The suspected contaminated fruit in this instance is actually raspberries...
The suspected contaminated fruit in this instance is actually raspberries…

In this instance – as in just about everything else connected with our globalised food system – many people have been suffering for a long time. We just don’t get to hear about the near-Dickensian conditions of the largely female and indigenous farm workers in Chile who pick the fruit, or the factory workers in China who pack it. That’s not ‘news’.

Rather, their low wages and precarious working and life conditions are merely ‘factors of production’ that show up as a column of numbers in the balance sheets of the agri-business corporations that call the shots in the globalised food and farming system.

 

And their cheap labour is essential to keeping prices ‘Down! Down!’ and ‘Cheap! Cheap!’ at the supermarket checkouts.

The price of an item like frozen imported berries conceals so much.

As does the label, for that matter. In the wake of these outbreaks, much of the emphasis has been on improved labeling requirements and ensuring stricter safety standards, including more tests of imported produce.

Both would be a step in the right direction.

Meanwhile, claims that this outbreak boosts the ‘clean, green image’ of Australian produce need to be made with a little bit of humility. While our food handling and safety standards are certainly stringent, what about the use of chemicals in production?

The US Environmental Working Group releases an annual list of a ‘Dirty Dozen’ foods, that US Department of Agriculture Pesticide Data Program tests reveal have an unacceptably high level of chemical residues.

Creative Gourmet

These tests have shown that conventionally-produced blueberries – a major crop on the Coffs Coast – have residues of up to 52 chemicals, including 8 carcinogens, 14 neurotoxins and 17 bee toxins. While this data relates to US production, what do we really know about chemical residues on our local produce? What would a ‘Made in Australia’ label tell us about potential risks to human and environmental health?

 

Then there is the whole can of worms that is the free trade agenda, which I’ve written about many times before. In a globalised system that is all about driving down costs and boosting production – and that’s true both here and elsewhere – human and environmental well-being are always going to be secondary priorities.

 

Ultimately this is the conversation that we as a society need to be mature enough to confront. The ‘cheap food’ paradigm is essential to a growth-based consumer economy. Why? Because keeping food cheap means consumers can devote more of their income to servicing debt to banks, and on discretionary purchases.

Tackling that conundrum is going to be really tough, because we all want to have our cake and eat it. Most of us haven’t grown up in an era of sacrifice and hardship. But the chill winds of austerity are blowing ever harder.

My view is that we can enjoy rich and fulfilling lives, while supporting our local producers, and helping them to produce really clean and green food. But we will need to break out of this paradigm of cheap food, and growth-and-production at all costs, to get there

 

Corporate control of food, Food sovereignty, Small-scale farming, Uncategorized

The Food System Isn’t Just Broken. It’s killing us.

This is the text of the speech delivered by AFSA National Coordinator Dr Nick Rose to the sell-out audience of 200 people, at the premiere of the Fair Food documentary at the National Gallery of Victoria on Tuesday 2nd December, 2014. 

 

AFSA National Coordinator, Dr Nick Rose

Why did we make this film? Because the Food System is broken.

Why is it broken?

Because we have fully applied the technologies and the mindset of industrialisation to food and farming. And because we have combined industrialisation with the logic and the imperative of endlessly increasing production, regardless of the consequences.

What does that mean? It means we have over-exploited our land, degraded our soils, and damaged our river systems. It means we have one of the highest rates of deforestation, biodiversity loss and species extinction on the planet. It means, globally, that the food system contributes as much as 50% of all greenhouse gas emissions.

It means that we have a supermarket duopoly which controls 70-80 percent of the grocery market, forcing farmers and food processors into price-taker relationships. 100 years ago farmers received 90 cents of every dollar’s worth of food they produced; today it’s around 10 cents.

 

Farming has become de-valued in our highly urbanized culture; and not just economically. So it’s shocking, but not surprising, that 7 farmers leave the land every day, and that rates of suicide and depression amongst farmers are twice the national average.

Our industrialised food system produces too much food of the wrong type. So we’re subjected to an endless barrage of advertising, urging us to buy food products laced with excess sugars and salt. Dietary-related diseases are already amongst the biggest public health issues we face.

 Our food system is not merely broken. It’s killing us, and ruining any chance that future generations have for a decent and liveable future. Yet the industrialised food system persists, and is expanding. Why? Because there are very powerful economic and financial interests that make a lot of money from the status quo. Because we are so disconnected from our food system. Because food is apparently abundant and cheap, and because we don’t join these dots.

We made this film, and we formed the Australian Food Sovereignty Alliance, because we can no longer tolerate this state of affairs. Because it’s no longer enough just to talk or think in terms of reforms. We need a transformation; we need a revolution.

And that revolution begins in our own minds, in our hearts, in our consciousness. We need to see ourselves as part of the story of the Great Work, the work that matters. As philosopher Thomas Berry puts it:

The Great Work now, as we move into a new millennium, is to carry out the transition from a period of human devastation of the Earth to a period when humans would be present to the planet in a mutually beneficial manner.

This is the challenge to every one of you here in this room. This is the choice facing every one of us alive today. Do we continue to allow our culture and our society to become ever-more destructive, and ever-more violent? Do we choose to remain in a paradigm which says that the Earth, and indeed ourselves, only exist for endless exploitation so that a tiny fraction of humanity can enjoy obscene levels of wealth?

Or do we choose to be part of the great challenge of our times – the greatest challenge of all times? To create a shared vision of a wonderful, bountiful world, where there is no hunger and no poverty; where soils are thriving, rivers are healthy and forests are abundant; where animals roam freely; and where all of us are healthy and flourishing.

Do we choose to see ourselves as victims of processes and powers beyond our control, and simply walk away and do nothing, resigned to our fate? Or do we choose to see ourselves as subjects and shapers of our own history, as creators and narrators of our own story, as powerful beings with the capacity to effect great changes?

Because I’m here to tell you, that’s who we are. We are powerful.

We made this film because these are messages that need to be heard. This is the story that needs to be told; that we need to tell ourselves, and each other. We made this film because we know that there are women and men all over this state, and all around this country, who have embraced this new paradigm, who are blazing a trail towards the decent, fair and liveable future that all of us want.

We’re here tonight to recognize and celebrate them.

They are our Fair Food Pioneers.

And this is the story of Fair Food.

Corporate control of food, Supermarket Duopoly

Trying to tackle abuses of market power with social media

#TellUsWhy

A version of this article first appeared in the Coffs Coast Advocate on Saturday 26th October, 2013

On Wednesday this week, the Victorian Farmers Federation launched a social media campaign with the hashtag, #TellUsWhy.

The targets of the campaign are Coles, Woolworths and Aldi, and the aim is to mobilise shoppers’ collective power, via Facebook and twitter, to pressure these mega-supermarkets to use Australian-grown produce in their homebrand product lines.

“We’re asking consumers – next time you’re in [one of those supermarkets] – check the fine print on the food you’re about to buy. If it’s an import take an image on your phone, then send it with the #telluswhyColes or #telluswhyAldi hashtag and your comments to the VFF – as a tweet to @VicFarmers or post it on the VFF’s Facebook page”, said VFF social media guru Tom Whitty, in the press release.

There’s a growing public awareness of the impact that cheap imported fruit (fresh and processed) is having on our growers and food manufacturers. Also this week the CEO of SPC Ardmona, Peter Kelly, issued an urgent plea to the new Coalition government for $25 million in funding, saying that without the money the company will be forced to close its Shepparton plant. The consequences of such a decision would be grim: 1000 workers redundant, the contracts of hundreds of local growers terminated, thousands of hectares of fruit trees ripped out ‘and a regional economy would be destroyed’, in the words of local Liberal MP Sharman Stone.

So the VFF is to be commended for its campaign, and apparently the building pressure has already had some impact, with Woolworths ‘committing to using Australian-grown frozen vegetables in its Select brand, and replacing $9 mn of imported tinned fruit with Goulburn Valley growers’ fruit”, according to VFF president Peter Tuohey.

Gary Gardiner
Gary Gardiner

But there are deeper dynamics at work which are placing inexorable downwards pressure on Australian growers and food manufacturers. One is the free trade agenda, which as I wrote last time is being ramped up several notches with the Trans Pacific Partnership deal.

And the other is the familiar story: the excessive market power of the big Australian supermarkets and the impacts of that power on farmers, workers and communities. The VFF campaign might persuade the supermarkets to buy more Australian produce, but what price will the growers and suppliers be getting?

This brings me back to Gary Gardiner, fourth-generation local farmer and now proprietor of Paradise Fruits in Sawtell, whom I first wrote about last month. With his intimate knowledge of the wholesale market system in Australia, Gary explained to me exactly how the supermarkets use their buying power to maximise their gains at the expense of growers:

“Coles and Woolies don’t just control 80% of the grocery market, they control the the market system as well. They’ll walk into a wholesale market and they basically control what’s going on. Let’s look at bananas in the Sydney market. There’s probably four main wholesale agents. With potatoes, there’s maybe two-three. So Coles and Woolies come in, they look at a product and say, right-o, that’s selling for $15 a carton. So they say to the agent, we’ll take all your production for $12, everything in your coolroom.”

“So that’s fine, they get a $3 discount. The agent’s going to say yes, because he’s on a fixed percentage. There’s no impact on him, it’s an easy sale. It’s the poor old grower who cops the hit”, Gary said.

“We’ve had so many stories. Let’s say there was a shortage of butternut pumpkin on the market. Let’s say it’s $1 a kilo. The [duopoly] will go in there and offer 70 cents a kilo, and take everything on the market. There’s usually one or two smaller growers there, holding out, and the price will automatically go to $1.50 a kilo, because there’s nothing on the market for anyone else to buy. Mysteriously, a percentage of the Coles and Woolies product will reappear for $1.50. Without even leaving the market, so they make a 100% mark-up on that product.”

Tell us Why? Indeed. To be continued.

advocate, Corporate control of food

The Trans Pacific Partnership – An attack on our democracy and sovereignty

Our sovereignty at stake

A version of this article first appeared in the Coffs Coast Advocate on Saturday, 19th October, 2013

It is ironic that the candidate who staked so much of his political capital on his ability to ‘stop the boats’ and ‘protect this nation’s borders’, should roll over so promptly when in office like a Cheshire cat and have his political tummy tickled by the likes of Cargill and Monsanto.

Ironic, but not surprising, because Tony Abbott’s first words on winning the 7 September Federal election were to declare that Australia was now ‘open for business’.

While our men and women in uniform are dispatched to patrol our borders to make sure that no ‘illegal’ humans can enter, transnational corporate capital can come and go more or less as it pleases.

It is not enough that we roll out the red carpet for these ‘foreign investors’ as though they were royalty. Now, with the new administration’s commitment to sign up to the Trans Pacific Partnership (TPP) without reservation, we are ceding a large chunk of our sovereignty to them as well.

Not heard of the TPP? That’s hardly surprising, because, like nearly all free trade negotiations since the infamous ‘battle of Seattle’ back in 1999, the 12-nation TPP talks, involving Australia, the United States, Mexico, Peru, Chile, Japan, Vietnam, New Zealand, Vietnam, Malaysia, Singapore and Brunei, have been conducted exclusively behind closed doors. More than that, it’s only due to the leaking of 2 of the 26 chapters under negotiation that we know anything about the substance of this agreement.

One of these chapters is titled, innocuously enough, Investor-State Dispute Settlements (ISDS). What this means is that foreign investors have the right to take state and federal governments to international tribunals if they dare pass legislation, or adopt policy, that conflicts with Australia’s obligations under the TPP.


One of Australia’s first civil society forums on the Trans Pacific Partnership, held at the Hawthorn campus of Swinburn University, on 14 October 2013. My contribution begins at 1:06 and ends at 1:25.

What does this mean in practice? Under an earlier free trade deal, the North American Free Trade Agreement (NAFTA), the oil and gas company Lone Pine Resources sued the Canadian government because the state of Quebec had a moratorium on coal-seam gas fracking.

While we don’t know for sure – because the draft TPP is a closely-guarded state-and-corporate secret – it is thought by those who have followed the process closely that other chapters will impact on our domestic freedom of action in a number of ways. For example, there may be well be prohibitions on any laws requiring the mandatory labelling of products containing genetically-modified organisms.

There may also be restrictions or even prohibitions on the ability of governments to adopt procurement standards that preference local suppliers and local jobs. National governments’ freedom of action to adopt laws and rules that safeguard the environment may be curtailed, should such rules impact on transnational corporate profits.

TPP

 

The trouble is, we won’t know what this agreement contains until the negotiations have been concluded, when it will be presented to the Australian Parliament, and the Australian people, as a fait accompli.

What we do know is more than enough to set alarm bells ringing loudly. The other chapter that has been leaked contains provisions designed to tighten already restrictive intellectual property laws. One Canadian media commentator, on reviewing the powers the draft TPP confers on international media conglomerates, said that it ‘would turn all Internet users into suspected copyright criminals [and] appears to criminalise content sharing in general’.

Before some of our most basic rights and freedoms that we take for granted are signed away behind some closed door, supposedly in the name of ‘growing the economy’ and ‘boosting employment and productivity’, we must at the very least be entitled to know the detail of what this agreement contains.

Whether or not he ‘stops the boats’ and ‘protects our borders’, Tony Abbott will be selling our national sovereignty to the highest bidder if his government signs onto to the TPP in its current form.

 

advocate, Coffs Coast, Corporate control of food, Cost-price squeeze, Fair Food Week, Farmers Markets, Local and regional food economies, New market mechanisms, Small-scale farming, Supermarket Duopoly

Crowd-funding for farming

A version of this article first appeared in the Coffs Coast Advocate on Saturday, 28th September, 2013

It’s been said many times: there is a crisis of profitability in Australian agriculture. Many factors are involved, including drought, the high Australian dollar, softening commodity prices, and the market power of the duopoly.

In May this year the Australian Financial Review reported that ‘at least 80 farming operations worth more than $1mn across Australia are in receivership or some form of financial distress.’

Debt levels feature prominently in this picture. According the Australian Bureau of Agricultural Research Economics and Science (ABARES), total farm debt for broad-acre farms averaged $476,000 as at 30 June, 2013. For dairy farms, average farm debt was $701,500. Debt levels in the Queensland beef industry have increased 500% in under 20 years, with most of the increase coming in the post-GFC period.

Commenting on the AFR report, financial blogger Steven Johnson of Intelligent Investor wrote,

“Any Australian farm funded with more than 50% debt is a Ponzi operation. There are thousands of them.”

Low interest rates bring some relief, and have been welcomed by the NFF. Before it left office, the ALP introduced a two-year Farm Finance package worth $420 mn of concessional loans (interest-only payments for 5 years, before reverting to market rates). But in the absence of a genuinely ‘farmer-friendly’ national food policy (which would likely include substantial tax breaks), this package, which is also supported by the incoming administration, may simply be deferring the inevitable.

At the other end of the scale, smaller scale farmers selling into niche local markets are successfully exploring a different financing alternative: crowd-funding. With its origins dating famously to Joseph Pulitzer’s 1884 campaign that raised $100,000 from 125,000 people to complete the pedestal of the Statue of Liberty, crowd-funding has really taken off alongside the rise of the social network era of the internet. US platforms such as IndieGoGo, GiveForward and KickStarter have helped artists, musicians and others raise tens of millions of dollars, mostly in small donations from large numbers of individuals, to enable them to make music videos, write books, fund travel and a host of other projects. Pledges are made securely via encypted software (using a credit or debit card), as you would do if you were purchasing a book on Amazon.com, and typically are only redeemed if the campaign reaches 100% of its target figure within the alloted time frame.

In Australia, the Pozible website (www.pozible.com) was launched in May 2010, and by August 2013 had raised $13 mn for more than 4000 projects. These have included in the past few months: $12,000 to send 5 Australian farmers to the Via Campesina global conference in Jakarta (June 2013), $27,570 to finance an on-farm butchery at the free range heritage pig farm, Jonai Farms in Daylesford, Victoria (June 2013), and $29,250 to finance the making of Just Food, an Australian-first Fair Food documentary (August-September 2013).

In the Coffs region, the owners of Nana Glen Synchronicity Farm, Josh and Tomoko Allen, recently launched a pozible campaign, seeking to raise $30,000 to finance a ‘gourmet food hub’ based on their property. As well as creating a farm-gate store which will be an additional market outlet for local producers, they intend to build a community facility for educational workshops on organic farming, permaculture, aquaculture, shitake mushroom farming and a venue for long table farm lunches to support access to good food for community members on low incomes.

Synchronicity Farm Stall, Coffs Harbour Harbourside Market
Synchronicity Farm Stall, Coffs Harbour Harbourside Market

Josh and Tomoko sell their heirloom fruit and veg at the Sunday Harbourside Market and the Nana Glen general store. Their campaign has around one month to run.

The project is in its early days, but it would make an important addition to food retailing diversity for this region. The food hub sector in the US is booming, with over 100 now in existence. It’s also starting in Australia, with projects in Casey, Trentham, Shepparton and Kyabram, amongst others. For more information, visit www.foodhubs.org.au.

Coffs Coast, Corporate control of food, Cost-price squeeze, Fruit growing, Local and regional food economies, Retailers, Small-scale farming, Supermarket Duopoly

A long road to Paradise


In August last year Master Grocers Australia (MGA), a national employer organisation which represents independent grocery supermarkets and liquor retailers in Australia, released its ‘Let’s Have Fair Competition!’ report, calling for regulatory reform to redress alleged abuse of market power and anti-competitive practices that MGA claimed Australia’s supermarket duopoly – Coles and Woolworths – were engaging in.

The Executive Summary of that August 2012 report claims that the duopoly, through tactics such as ‘price discrimination, shopper docket schemes, store saturation and over-sized store strategies [building huge supermarkets in small local markets in order to drive out existing competition and prevent new market entrants]’, is ‘crowding out all competition [and] rapidly reducing the choices in shopping format, brands, locally-derived products and service levels’.

Faced with inaction on the part of policymakers, the MGA released in August this year a follow-up report, ‘Finding a Solution’, which makes a number of specific proposals for reforms to the Competition and Consumer Act to achieve the MGA’s goal of a fairer grocery retail market in Australia.

These are issues that Gary Gardiner, co-proprietor of Paradise Fruits, a small fruit, veg and grocery shop in Sawtell, is all too familiar with.

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Gary’s family has been living and farming on small acreages in the Boambee / Coffs Harbour region since about 1890, first in middle Boambee, then to Stadium Drive, and finally on Sawtell Road.

“The original farm was developed as a diverse farm, with dairy and small cropping. In the early 1900s my family did a run to Bellingen and Nambucca to supply the local shops and markets”, Gary told me.

A century ago, family farming on a small property in this region offered a viable livelihood.

“In the older days, 10 acres was about what one family could manage on their own. Any bigger than that, you needed multiple families and / or outside workers”, Gary said.

“Most farmers grew a commercial crop – usually bananas – supplemented with other, smaller, cash crops, like tomatoes, cucumbers or zucchinis. The income from the smaller crops was what they lived on, and what they produced commercially just about covered the costs of running the farm itself”, Gary said.

There was also a strong ethic of self-sufficiency. “Back in those days, most of the food the family ate was produced on the farm as well. That was certainly true during the Depression era – and even we still did that up to the 1970s”, Gary added.

Gary Gardiner
Gary Gardiner

As the food supply chain in Australia became steadily more centralised over the decades, the viability of the small-scale, diversified family farming model was increasingly threatened, as Gary explained:

“About 24 years ago, we were still growing bananas and small crops, and around that time we set up ripening rooms so we could supply the two Coffs Harbour independent supermarkets, Cox’s, and Tucker Bag. But they could only take 10% of our production. But the profit we got from that 10% equalled the returns we got from the other 90% going through the mainstream marketing system.”

“That’s how much we were all getting ripped off”, Gary remembers. “So we [aimed to] take out the middle men. And when you do that, you have a chance of actually making a living [as a grower].”

“It’s basically the difference between being a price-maker and a price-taker. If you were selling to the [central] markets, new cartons had to be used, so you had to buy those – $1.50 each. Freight – $1 per carton to get the product to market. Agent’s commission – $3 a carton back then. We were only getting $10 a carton.”

“And during the summer, when there was a glut, we got nothing back at all. You’d be doing all of that work, carrying all those costs, and you’d actually be paying to send your product to market, and you’d get nothing for it.”

Cox’s and Tucker Bag closed their doors not long after Woolworths opened, in the late 1980s. We’ll hear Gary’s thoughts on the impacts of the supermarket duopoly next time.

advocate, Corporate control of food, Fair Food Week, Food policy, Local and regional food economies, Supermarket Duopoly

Fair Food Week arrives in Australia

Australia’s first Fair Food Week

A version of this article first appeared in the Coffs Coast Advocate on Saturday 17th August, 2013

On the 1st August this year I attended Australia’s first Symposium on Supermarket Power. Jointly organised by the law schools of Monash and Melbourne University, the aim of this event was to explore the extent of supermarket power in Australia’s economy and society, the impacts of that power, and what if anything could be done about it.

It was a fascinating event in many ways. We heard from a financial analyst documenting the extraordinary sales growth and profit performance of Woolworths and Coles over the past decade, along with some cautionary words expecting both indicators to moderate somewhat in the current decade because of the entry of Aldi and CostCo into the Australian market.

We heard about the new supermarket adjudicator appointed under the UK’s mandatory supermarket code of conduct, and how she intended to exercise her powers, including by the imposition of ‘punitive fines’ based on a percentage of turnover in the event of repeated abuses of market power down the supply chain by the supermarket majors.

Tasmanian senator Peter Whish-Wilson announced that the Greens want to extend divestiture powers to the Australian Competition and Consumer Commission, and to impose an immediate moratorium on the opening of any new stores by the duopoly. We also heard from Robert Hadler, General Manager of Corporate Affairs at Coles, who welcomed the discussion and acknowledged that Coles (and, by implication, Woolworths) needed to do more to justify their ‘social license’ to operate.

I was invited to attend to speak about the challenges facing our food system and the emerging ‘fair food’ movement. I had the audience smiling when I put up a slide with that ubiquitous social media question, ‘WTF?’

WTF image

‘What does he mean?’, I’m sure they wondered. Then I showed the short film, Orange Tree Blues, which tells the moving story of Riverina citrus grower Mick Audinno finding himself forced to rip out hectares of healthy orange trees because he had lost his markets as a result of cheaper imported juice concentrate.

And then my next slide revealed two new meanings of WTF:

This is a question, I told the audience, that every Australian should be asking themselves. Because we are losing farmers at a truly alarming rate – an average of 76 per week from 2006-2011, expected to rise to 130 per week during the current decade.

A gentleman from the Victorian State government, himself a farmer, came up to me afterwards and told me I was being ‘mischievous’ with these figures (which, by the way, come from the Australian Bureau of Statistics and KPMG). His point being that it doesn’t matter if we lose eight ‘inefficient’ farmers, if we can replace them with one who is much more ‘productive’ and ‘efficient’.

WTF image 2

But this rather misses the point. In our singular and relentless focus on productivity and efficiencies, we lose sight of so much else, the value of which cannot be simplistically reduced to monetary calculations. This is what scholar John McMmurtry terms ‘the life-blind structure of the neoclassical paradigm’: the exclusion as a matter of definition of considerations such as human health and well-being, and eco-system integrity, that are actually fundamental to our continued survival as a species, let alone our civilisation in its current form.

In an effort to foreground a national conversation on food and agriculture that begins from the question, ‘What values do we as Australians want to underlie our food system?’, the Australian Food Sovereignty Alliance (AFSA) is facilitating the country’s first-ever Fair Food Week, from 19-25 August.

ffw-2013-logo

 

What we call ‘fair food’ is food that is produced in ways that are fair to all and that guarantee economic and nutritional health to everyone in Australia’s food value chain – Australian farmers, Australian food processors, small to medium size food retailers and we who eat the products of these producers and enterprises.

 

Already over 90 events have been organised around the country, including forums, workshops, film screenings, farm dinners, garden tours food swaps and much more. We have been humbled by the response Fair Food Week has received. It speaks to the emergence of a fair food movement in Australia that is rapidly growing in confidence and capacity.