Category Archives: economics

 

Australia is a functioning representative political democracy, but with so many important decisions being made in the economic sphere of social life, most of us are effectively disenfranchised. Key decisions about the allocation of resources, job creation or job destruction, and what form of economic development we want for our country, are too often taken by a small number of wealthy individuals, behind closed doors.

I argue that a system based on the endless and limitless accumulation of private wealth is not only socially and environmentally destructive: it is ultimately self-destructive. We have seen this already in the past 100 years with two major world wars and a seemingly endless succession of minor wars. As inequality reaches stratospheric levels in the first decades of the 21st century, the globalizing capitalist system is once again at breaking strain, and the drums of war are beating loudly yet again.

Happily there are powerful alternatives emerging, in the form of the the peer-to-peer, commons-based economy, the co- operative movement and economic democracy. All of these have natural affinities with the global food sovereignty movement. All are expressions of the solidarity economy, which Brazilian author Euclides Mance describes as being practiced daily by millions of people,

[W]ho work and consume in order to produce for their own and other people’s welfare, rather than for profit. In a solidarity economy what matters is creating satisfactory economic conditions for all people. This means assuring individual and collective freedoms, generating work and income, abolishing all forms of exploitation, domination and exclusion, and protecting ecosystems as well as promoting sustainable development.

In the context of food sovereignty, this is captured by Via Campesina leader Nettie Wiebe, who describes how the experience of working together for a common vision and cause is unifying and powerful:

To stand…and to walk shoulder to shoulder with people who all recognise that what we’re struggling for here are sustainable, nutritious, locally-based, empowering systems of farming, and that that’s key to all of us, that’s a tremendous strength…The hardships that we suffer, and the joys we have, don’t look the same, but…they’re very real in our own context. That kind of solidarity, generated of course by the political necessity of standing in solidarity with each other, has been just a powerful, powerful dynamic internationally. And it has sometimes surprised us in La Via Campesina just how powerful that has been.

Topics in economics: [suffusion-categories child_of=182 title_li=0]

 

All articles about economics

advocate, Food sovereignty, Local and regional food economies, Small-scale farming, Uncategorized

COMMUNITY FUNDED FOOD

A version of this article first appeared in the Coffs Coast Advocate on Saturday 31st May, 2014

About nine months ago I first wrote a column about the emergence of crowd-funding as an alternative means by which direct-marketing farmers could raise finance to invest in capital enhancements and equipment purchases. Those investments in turn would enable on-farm value-adding and diversification that could make the critical difference between going under and going from strength-to-strength.

Judging by the numbers of farm-based crowd-funding campaigns in the past few weeks and months, there is a growing community appetite around the country to get behind local producers. On platforms such as Pozible, fundraising is structured around a rewards system, so for every pledge, you receive a specified ‘reward’ of goods produced on the farm. The higher your pledge, the greater your reward.

Producers like it because, if well structured and well promoted, these campaigns help raise their profile as an innovative supplier of good food to local communities. And of course because, unlike a loan or mortgage from a bank, there is no obligation to pay any interest. Repayment is in farm produce.

As my friend and fellow Committee member of the Australian Food Sovereignty Alliance, Tammi Jonas, puts it:

“Your support helps us reach our goals to be ethically viable without taking on debt from the banks to line shareholders’ pockets. Instead of feeding the banks, let us feed you with our range of tasty rewards in return for your pledge to help us reach our goal!”

Tammi Pigs

 

Tammi and her husband Stuart (Jonai Farms, rare breed pigs) have just launched a campaign to raise $30,000 to build on an on-farm curing room and commercial kitchen, following the success of their campaign last year to build an on-farm butchery. Another free range pig farmer, Lauren Mathers, has just successfully raised $15,000 to build an on-farm charcuterie to make pork small goods.

And a truly enterprising young poultry farmer, Madelaine, raised a record-breaking $67,986 to purchase an egg cleaning and grading machine so she could increase her sales of organic and free range eggs direct to customers in Melbourne.

Crowd-funding in NSW 

In northern NSW, I’m happy to report that there is an exciting new food social enterprise initiative just starting in Mullumbimby. Future Feeders is a project launched by a small group of local young people, aiming to create pathways for young people to enter agriculture and be supported in developing their skills and capacities to have viable and long-term careers in sustainable food production.

As I’ve written in this column several times previously, Australia is facing an agrarian demographic crisis. According to ABS data, the percentage of Australian farmers under 35 had fallen to 13% by 2011, from 28% thirty years previously. A quarter of all our farmers are over 65. We are quite literally relying on a workforce of pensioners to do a lot of the heavy 2014-01-12 16.59.45lifting in feeding us. This is both grossly unfair and dangerously non-resilient.

 

That is why it is so encouraging when groups of young people are motivated, enthusiastic and committed to enter agriculture. Future Feeders have a 2 acre urban farm operational in Mullumbimby, on which they have secured a five-year community land lease. They are looking to partner with retiring farmers on a land-share basis, to turn disused or under-utilised parcels of land into thriving centres of sustainable and diverse production for local and regional markets.

 

2014-03-14 08.55.43

They are seeking support to raise start-up capital to purchase necessary irrigation, transport, fencing and storage equipment so they can hit the ground running. And they want to share their knowledge, expertise and resources widely through a co-operative farm management and community-supported agriculture model.

Simon Richardson, Mayor of Byron Shire Council, has this to say about Future Feeders:

“This group walks their talk: they get their hands into the soil and do so cooperatively, intelligently ad passionately. They are the future of the next generation of farmers.”

2014-03-14 13.05.02

For more information, contact Joel Orchard, Project Manager, joel@futurefeeders.org

To support their crowd-funding campaign, visit www.chuffed.org/project/future-feeders

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.

DSC_0127

 

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.

advocate, Corporate control of food, Farmers Markets, Food policy, Local and regional food economies, National Food Plan, Small-scale farming, Supermarket Duopoly

Local Food, Local Farms

Local food and the 2013 Federal Election

A version of this article first appeared in the Coffs Coast Advocate on Saturday, 3rd August, 2013

As the 2013 Federal election draws closer, policy announcements are starting to come thick and fast.

The Government has already set out its stall on food and agriculture, in the shape of the National Food Plan. The ‘big idea’ is that Australia will become the ‘food bowl’ of Asia, with a 45% increase in exports and a 30% in agricultural productivity by 2025.

The Coalition likewise wants a big increase in exports and foresees a ‘dining boom’ to replace the ‘mining boom’. The distinguishing feature from the Government’s plan is the emphasis on Northern Australia, with the damming of rivers and the clearing of land seen as the key to opening up the untapped resources of the northern frontier.

Meanwhile Bob Katter’s Australia Party has taken an entirely different tack, focusing on what he sees as the largely negative role played by Australia’s supermarket duopoly in terms of the viability of our farmers. He has accordingly introduced a Bill to Reduce Supermarket Dominance, which among other things makes it an offence, punishable by a $50 million fine, for any supermarket operator to retain a market share greater than 20% withinsix years after the passage of the legislation.

That $50 million fine contrasts with the $61,200 fine imposed on Coles after it was found to have engaged in misleading conduct, by selling as ‘baked today, sold today’ bread that had actually been made weeks ago in Ireland.

Katter’s initiative, which was supported by Nick Xenophon, has been branded by the industry as ‘radical’ and ‘extreme’. Forcibly breaking up companies is indeed radical, although there are plenty of historical precedents for such actions. I can’t speak for Bob Katter, but I imagine he might say that a situation in which two companies control in excess of 70% of the grocery market is itself ‘radical and extreme’.

On this issue, the Government and the Coalition effectively adopt a ‘do nothing’ approach. The Greens, on the other hand, propose that the Australian Competition and Consumer Commission be given divestiture powers, although they propose nothing as directly forthright as Katter.

Local Food Local Farms
Local Food Local Farms

What the Greens have announced in the past week is the establishment of an $85 million grants program to support various forms of direct marketing of produce by farmers and growers, including farmers’ markets, regional food hubs, and community-supported agriculture vegie-box schemes.

This proposal draws directly on the experience of the ‘Know Your Farmer, Know Your Food’ program operated for some years by the US Department of Agriculture. Partly as a result of such initiatives, the numbers of farmers’ markets in the US have more than doubled in the past decade, from 2900 in 2001 to 7000 in 2010. And the numbers of farms selling some or all of their produce through local markets rose to 136,000 in 2012, a 24% increase from 2012.

The $85 million in grants for direct marketing compares favourably with the $1.5 million grudgingly offered by the Government in the National Food Plan to support community food initiatives such as farmers’ markets and community gardens. That $1.5 million came with many strings attached, including a dollar-for-dollar matched funding requirement. I know of many groups that would have liked to apply but were put off by such conditions.

Many people in rural and regional Australia will be sceptical that the Greens are or ever could be the friends of farmers. That said, direct marketing and local food is growing at 5% -10% per annum in North America, with solid and bi-partisan political support at both state and federal levels, and with clear benefits to farmers. Indeed, net farmer numbers in the US recently increased for the first time in decades, with many new entrants being considerably younger than the average age of 58. Clearly something is going on here.

advocate, Coffs Coast, Small-scale farming

Fair Trade – A story not told enough?

Fair Trade Coffee

A version of this article first appeared in the Coffs Coast Advocate on Saturday 20th July

In food and beverages, ethical and sustainable products are a booming niche market sector, which has doubled in the last four years.

Fair Trade is leading the way, averaging an astonishing 50% year-on-year growth over the last five years, according to Fairtrade Australia New Zealand operations manager Craig Chester.

Talk about recession-busting. In barely 10 years, products bearing the Fairtrade ANZ label now generate sales in excess of $191 million.

Chocolate is largest segment of the fair trade market, at 62%, followed by coffee at 31%, and tea at 6%.

Fair Trade is a certification system that allows importers and retailers of products from developing countries to sell them under the Fair Trade label. So what does Fair Trade actually mean in practice?

This was the discussion I had with Bellingen-based coffee roaster Amelia Franklin. For Amelia, being herself perhaps unique as the proprietor of a 100% woman-owned coffee roasting business, a very important element of the Fair Trade system is its strong support of gender equality and the empowerment of women.

“To be Fair Trade is to be a co-op, which is a group of small farmers with small plots, getting together and selling their product as a community”, she explained.

“One of the main guidelines is that women have an equal voice in the co-op. There needs to be women representing all the farmers’ families, and there needs to be women making decisions. When you look at countries like Papua New Guinea (PNG), where the only people to sit in the circle are men, that changes the dynamic. That gives women a voice. I think that’s a good thing”, she said.

Fair Trade

For Amelia, another very important part of Fair Trade is its support of education.

“The children are going to school, they’re not working”, Amelia told me. “So you’ve got maybe 500-1000 family members in the co-op, and one member might cover up to 15-20 people, including several children. If you have 500-1000 members, then that means that all those children are going to school, and all those women have a voice.”

Fair Trade also supports sustainable agricultural practices, although the system itself does not duplicate or replace organic certification. Fair Trade producers are typically small-scale farmers, working on two-hectare plots, so ‘they’re not putting fertiliser and pesticides on their coffee’, said Amelia.

Whereas in large-scale coffee production, ‘you’re looking at deforestation and full irrigation, and pesticides and fertilisers because you’re completely stuffing with the environment, to engage in that kind of monoculture’, she said.

In terms of the difference that the Fair Trade premium – 2% of the market price on green beans – makes, this is determined democratically by the co-operative through a discussion and voting process.

“[The co-op] will have a number of projects they want to achieve”, Amelia told me. “One of the first things they usually do is put in a nurse’s post in their community, so they have direct access to primary health care. I’ve been to PNG and in remote areas the basic health care is minimal. And many people don’t access that health care because they have to pay, and they can’t afford it.”

“Also there’s often no school nearby, so the second thing they do is build a school and fund a teacher”, she added.

Coffee – whether it’s Fair Trade or not – is a commodity crop for export. So what about support for growing basic food groups?

“There is a massive problem in PNG with the food quality”, Amelia told me. “It’s terrible. Many people live on a diet of canned meat and two-minute noodles. Supermarkets are full of canned produce from China, that’s what people are eating.”

“I visited a cocoa-growing Fairtrade community. Fairtrade were supporting a lot of women to be trained in horticulture, and encouraged them to grow their own food. Australians don’t see that as part of Fair Trade, they don’t see what it does on the ground [in countries like PNG]. There are so many good stories to tell, but Fair Trade isn’t telling them enough. It’s not perfect, but they do really good work”, Amelia finished.

advocate, Coffs Coast, Local and regional food economies, Small-scale farming

Bootstrapping independent coffee roasting on the Coffs Coast

Amelia Franklin

A version of this article first appeared in the Coffs Coast Advocate on Saturday 22nd June, 2013

Sugar and tea was said to be the fuel that drove forward the workers in the mills and factories of England, as it led the world into the industrial revolution.

In our time, coffee has replaced milky tea as the beverage of choice for the white collar workers and entrepreneurs who are at the forefront of the information technology and communications revolution of the late 20th and early 21st century.

But now, as then, the world is connected. Tea and sugar were produced somewhere, and that somewhere was often on large plantations were the workers were either indentured slaves or paid very little. Either way conditions were poor and the work was harsh.

Coffee is likewise often grown on large plantations, where the conditions are harsh and the pay is poor. Often, children labour in these plantations, picking the ripe red fruit that contains the green coffee beans alongside their parents and siblings.

The coffee industry globally has revenues in excess of $80 billion per annum. Most of the profits wind up in the hands of multinationals like Nestle and speculators on futures markets, while many coffee growers don’t earn enough to feed their children, let alone send them to school.

Amelia Franklin
Amelia Franklin

There is an ethical alternative, and it’s called fair trade coffee. In our region, Amelia Franklin is the embodiment of fair trade principles.

“When I went into coffee, I just wanted to do fair trade and organics, because I didn’t want to impact on anyone else, that was the main objective”, Amelia says. “I didn’t want to make my life and my son’s life good, at the expense of another family. That’s not OK. I’d rather be poor, and not have that knowledge that where the product is coming from is impacting on someone else’s family in another place to make a profit for myself.”

Amelia is a fiercely independent and values-driven young woman who owns and operates her own coffee roasting and grinding business, based in Bellingen. She has struggled every step of the way and overcome major obstacles, building during the course of 10 years an ethical business with significant sales and a staff of four, including herself. And as I will discuss in the second part of her story, her business directly supports the education of children and the equality of women, amongst many other benefits, in the regions where she sources her coffee: Peru, Colombia, Mexico, Papua New Guinea, Sumatra, Ethiopia and Timor Leste.

Amelia entered the coffee business with no prior experience or mentoring. She even spent a year teaching herself how to roast coffee, after borrowing $20,000 to buy a 5-kilo coffee roaster from Turkey and a grinder; and selling her 1960 FB Holden to purchase a tonne of green beans.

The early days were daunting, even scary. “The whole garden was filled with coffee beans that were burnt or under-roasted”, Amelia recalls. “In that year I thought, What the hell have I done? I’ve screwed up big time, I’ve put myself into a lot of debt, and I don’t even know what I’m doing!”

“There were a lot of tears and fist-pounding on the floor”, she adds with a smile. “But people started to buy my coffee, and I got a couple of big customers in Sydney, and I thought, I must be doing something right.”

Her initial loan came via an equipment finance company, at an extortionate 18% interest rate. Because she had no job, no established business record and no assets, Amelia found herself with little option but to go down that route. It took her four years to clear the initial $20,000 loan, after she had repaid more than double the original amount in interest.

“Going into debt to start a business is not the best way forward”, she reflects ruefully. “It would be good if there were some sort of interest-free loans for start-up businesses”, she adds, pointing out that she has neither the experience or the time to spend long hours writing grant applications, and nor can she afford to employ someone to do that work for her.

Amelia Franklin’s story will be continued. Don’t forget the inaugural Sawtell Veggie Swap this Sunday, 23rd June, from 11.00 am – 2.00 p.m., at Sawtell Public School. Bring your surplus veggies, or just a plate to share!

advocate, Coffs Coast, Corporate control of food, Food policy, National Food Plan

A vacuum of political leadership on food policy in Australia

Questions for the Federal Government – and the Opposition

A version of this article was first published in the Coffs Coast Advocate on Saturday, 8th June, 2013

Two weeks ago the Federal Government launched the National Food Plan White Paper, after nearly three years of preparatory work.

With colleagues at the Australian Conservation Foundation, the Food Alliance (Deakin University) Gene Ethics and the Sydney Food Fairness Alliance, I have been going through the White Paper closely, in preparation for a briefing from the office of Minister for Agriculture Joe Ludwig.

So far we’ve come up with 10 pages of observations and over 50 specific questions. We’re not expecting the Minister’s office to address all of these in a 90 minute briefing, of course, but it should give you an idea of the extent of misgiving and disquiet about this Plan felt by the representatives of Australia’s Fair Food movement.

There are two headline targets of this Plan: an increase in Australia’s commodity exports to Asia of 45% by 2025; and an increase in agricultural productivity of 30% by the same date. Just in case the reader doesn’t get the message that this Plan is all about exports and productivity, it is rammed home through relentless repetition. The word ‘export’ and its derivations are mentioned 118 times in the 104 page document. ‘Productivity’ receives no fewer than 80 separate mentions.

The word ‘health’ and its derivations appear even more frequently – 140 times – but don’t be deceived: this plan is not mainly about health, or for that matter environmental sustainability. If we follow the money, nearly $40 million of the $42.8 million in new funding that this Plan represents is focused on growing exports and boosting productivity, with the largest chunk – $28.5 million – to be spent on researching Asian markets.

With the exception of the Community Food Initiatives and Food Literacy programmes ($1.5 million each) – which are welcome and somewhat unexpected inclusions, if symbolic rather than substantive – the whole question of health has been deferred to a National Nutrition Policy, work on which is slated to begin in 2014. Given that the Food Plan was intended to be an integrated, whole-of-government food policy, this is a major disappointment. Quite frankly, it’s a cave-in to big food lobbyists who always pushed for this outcome.

As well as side-stepping our health crisis, the Plan makes very light of climate change as a risk factor, and includes no targets or action plan for reducing the fossil fuel intensity of our food system. This is quite extraordinary, given that the latest data suggest that the Arctic may be ice-free in the summer within one or two years, contrary to the ‘worst-case’ projections of the International Panel on Climate Change that such an occurrence, with all its implications in terms of cascading non-linear feedback loops, would not happen before 2075.

Free trade is held up as the best and only route to happiness and prosperity. Meanwhile this week brought news that Simplot is threatening to close down its Devonport frozen food factory in the face of waves of cheap imports, with major consequences for Tasmanian growers. Ausveg rightly says that the loss of this capacity and with it many growers is a real threat to our food security.

Judging by the Food Plan, the Government is not concerned about such developments; and the Opposition’s only answer is that scrapping the carbon tax will solve all our problems. Such is the dearth of leadership on basic questions of our national security and our children’s future.

Veggie swaps - a growing phenomenon
Veggie swaps – a growing phenomenon

Meanwhile, some positive news on the local front. The first harvest swap in the Coffs Harbour region will take place at Sawtell Primary School on Sunday 23rd June, from 11.00 a.m. – 2. 00 p.m. If you have armfuls of surplus cabbage or kale, this is your chance to spread the love! (but keep the caterpillars at home!) If you want to attend, please contact Juliet Thomas, jtinthegarden@gmail.com