What are the effects of world trade on food

production in developing countries?

• How do subsidies affect other countries?• How does restricting imports affects other countries?• How does consumer purchasing choice affects world

trade?• How can food production be made more sustainable?

World Food Supply

Make 3 statements which describe this graph.

Index 1960=100

Describe the pattern shown.What issues does this raise?

Map showing % of population undernourished.

The Effect of Subsidies on World Trade

Developed countries protect their farmers from farmers in developing countries

A subsidy is something that reduces the costs of productionA subsidy is something that reduces the costs of production

Farmers in developed countries like the UK get big subsidiesFarmers in developed countries like the UK get big subsidies

This means they can produce food artificially cheaplyThis means they can produce food artificially cheaply

So, food prices are lower than they really should beSo, food prices are lower than they really should be

Farmers in developing countries –who are trying to grow the same crop – cannot produce it as cheaply as a UK farmer

Farmers in developing countries –who are trying to grow the same crop – cannot produce it as cheaply as a UK farmer

They are kept in poverty by our government’s subsidiesThey are kept in poverty by our government’s subsidies

Re order the flow chart so that it makes

sense

The Effect of World TradeDeveloped countries protect their farmers from farmers in developing countries

A subsidy is something that reduces the costs of productionA subsidy is something that reduces the costs of production

Farmers in developed countries like the UK get big subsidiesFarmers in developed countries like the UK get big subsidies

This means they can produce food artificially cheaplyThis means they can produce food artificially cheaply

So, food prices are lower than they really should beSo, food prices are lower than they really should be

Farmers in developing countries –who are trying to grow the same crop – cannot produce it as cheaply as a UK farmer

Farmers in developing countries –who are trying to grow the same crop – cannot produce it as cheaply as a UK farmer

They are kept in poverty by our government’s subsidiesThey are kept in poverty by our government’s subsidies

Re order the flow chart so that it makes sense

How do subsidies affect other countries? • In the US cotton subsidies = $4.4 billion, there are

also large subsidies for soya, wheat and rice.

• These export subsidies make it artificially cheap for the rich countries to export some foodstuffs to developing countries e.g. In 2006 the EU dumped 5 million tonnes of surplus sugar on world markets.

TASK - Create another flow chart to show the effect that this would have on farmers in developing countries.

• Farmers in India and Zambia receive subsidised fertiliser supplies.

• In some countries irrigation water is subsidised.

TASK what problems would this bring?

How many pink and green countries can you name?What is the pattern?

Imports over 50% more agricultural products than exports

Exports over 50% more agricultural products than imports

How does restricting imports affects other countries?

EU imposed quotas on bananas from Ecuador and Honduras in the late 1990s – a move which was ruled unfair by the World Trade

Organisation – the EU had to drop their quotas for bananas.

Why did the EU do this?What effect would it have on farmers in Ecuador and Honduras?

How does consumer purchasing choice affect world trade?

There is growing demand for high value food exports from developing countries. Can you name some of these?

This is good for some farmers as it provides source of income

Can you think of any potential problems with this?• Deforestation and land clearance for growing cash crops• Farmers reliant on one cash crop• Use of chemicals can damage environment• Fewer food crops for domestic market may lead to food shortages.• Distances foods are transported – food miles and contribution to

climate change• Overgrazing, overcultivation and land pollution loss of

productivity famine refugee movements

Demand for Seasonal Foods all Year RoundJimmy’s global harvest http://www.bbc.co.uk/programmes/p005wm8z

Red spring onions. 8800km

Sugar snap peas

8650kmAsparagu

s 10,000k

m Grapes 8900km

Runner beans

8300km

Mange tout

6700km

Baby sweetcorn 9400m

Blueberries

11,500kmDemands for foods all year round means

supermarkets source products from great distances

The Trade TrapCocoa Farmers in Ghana have been getting poorer while people around the world eat more chocolate and the companies selling chocolate make big profits. How fair is that?

Britain charges high taxes to import processed

goods (like chocolate) but low taxes to import raw materials (like cocoa)

So Ghana sells Britain cocoa which means that they don’t have to pay

high taxes.

Poor countries produce a lot cocoa so the world price falls and Ghana

can’t make much profit

so Ghana can’t afford to build factories to make

chocolate or pay the high chocolate taxes

How can food production be made more sustainable?

Oxfam works with farmers to change global trade rules so they start to work for the poor as well as the rich

Example of Oxfam campaigns:

• Stop rich countries dumping subsidised farm products in the developing world

• Stop rich countries from forcing developing countries to open their economies to agricultural imports

• Improve the price of coffee/bananas etc paid to small farmers= Fairtrade foods

Fair Tradehttp://www.youtube.com/watch?v=orDjyNBmkj4

How does fair trade make life better for cocoa farmers?Use the statements below to fill in the blanks on your table.

1. Buyers weigh the beans and sometimes they are dishonest. Then they sell them to exporters.

2. Farmers get a lower share of the price because there are lots of people in the trading chain to share with.

3. No training or education for farmers.4. There is no profit.5. Profits are shared equally among farmers6. Weighed on accurate scales then the fair trade company

exports the cocoa beans.7. Farmers get a higher share of the price for their beans.8. Farmers get a fixed price that doesn’t change.9. The price goes up and down with the world market price.

How can organic farming make agriculture more sustainable?

For each picture

• State the conventional farming method that it replaces.

• Explain the benefits of this technique.

• Describe any disadvantages of this technique.

Organic Farming http://www.bbc.co.uk/learningzone/clips/an-organic-farm-in-the-paris-basin/3945.html

Problem How it can be made more sustainable

Over-reliance on artificial fertilisers that need fossil fuels in their manufacture

Soil erosion from bare fields

Food miles

Loss of biodiversity

Banana-growers in LEDCs cannot afford to grow bananas for the price MEDCs will pay

Salinisation of soils

Overstocking leading to soil erosion

How can we make agriculture more sustainable?

Match the response to the problem

Careful management of irrigation

Tie Environmental Stewardship payments to habitat management and creation

Enforce maximum herd sizes

Retain cover crops

Price intervention and abolish tariffs

Provide grants for farmers markets

Increase agri-environment payments for organic farming

How can we make farming more sustainable?