Over 1 billion people across the globe go hungry every day, despite the fact that there is more than enough food in the world to feed everyone
Every day, almost 16,000 children die from hunger-related causes - one child every five seconds
One in five people in developing countries is chronically undernourished
Food prices have increased 83% in the last two years
22 countries have enshrined the right to food in their constitutions
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Yash Tandon and Sisoko a farmers representative from Mali at the UNCTAD
Giant multinationals squeezing out millions of small producers
The market is just too narrow and we need to open it up more fairly to small-scale producers
Giant multinationals are undermining economic development in commodity-reliant developing countries by influencing the terms of trade in their favor, edging out small scale producers and shrinking their income and savings.
 
A joint report released by ActionAid and the South Centre  in Accra, Ghana, at the UNCTAD XII meeting has revealed.
 
According to the report, the international commodities trade could be a vehicle for development and poverty reduction if earnings within the commodity chain are distributed fairly.

“The world must shift the focus of trade from being driven solely by profits to serve people-centered development” Yash Tandon Executive Director of South Centre says.

Citing trends in global coffee trade the report argues for protection of small scale farmers saying they require concerted international efforts including international commodity agreements and commodity boards at national levels to protect producers from vulnerability to market shocks and manipulation by giant multinationals.  

“With market power concentrated in a few hands internationally, African farmers find it hard to build up enough cash to diversify their crops” Dede Amanor-Wilks ActionAid’s West & Central Africa Director says.

“The market is just too narrow and we need to open it up more fairly to small-scale producers”

The report indicts developed countries for failing to eliminate trade, distorting subsidies and reducing opportunities for developing countries to access their markets, saying they are simply not committed to live what they promise.

Some of the key findings
The Global Giants
Seed and agrochemicals:
  •  In 1994, the top twelve companies accounted for 80% share of the global pesticides market.  By 2002, this number halved and the top six companies: BASF, Bayer, Dow, DuPont, Monsanto and Syngenta now control 80% of the market between them.
  • Only two companies, Du Pont and Monsanto, controlled 65% of the world's maize seed market in 2002.
    Bulk commodity trading:
  •  In 1998, the top six coffee trading companies held 50% of the world market.  By 2002, the top three: Neumann, ED&F Man and Esteve held 45% of the market. 
  •  In 2002, just two companies – Cargill and Archer Daniels Midland – controlled three-quarters of the global grain trade.
  • Two companies, Chiquita and Dole, controlled nearly 50% of world banana trade in 2002.
Food manufacturing and processing:
  •  Only two companies, Nestle and Philip Morris/Altria, controlled nearly 60% of the world market for roasted and instant coffee in 2002.


© Martin Adhola/Actionaid