09/23/2022
🏰Extreme oligopoly🏰
Economists typically consider that if four firms together operate 40% or higher of a sector that constitutes an oligopoly. The results of this report shows that our food system has already tipped well into oligopoly. Four firms (Sygenta, Bayer, BASF, and Corteva) control 62% of the world agrochemical market: the top six control 78% of the market. Three multinational companies (EW Group, Hendrix Genetics and Tyson Foods) control 100% of commercial poultry genetics. Two companies (Syngenta Group and Bayer) control 40% of the commercial seeds market.
🖧Digital domination🖧
Tech giants are becoming prime players in food, handling the data, networking and AI that undergirds the newly digitized food chain. For example, Bayer’s ‘Field View’ digital platform extracts 87.5 billion datapoints from 180 million acres (78.2 million hectares) of farmland in 23 countries and funnels it into the cloud and AI servers of Microsoft and Amazon to generate new business strategies. These systems displace farm workers, erode farmers’ rights and manipulate consumers.
💼Big finance behind big food💼
Food Barons 2022 also explores how finance majors are in the driving seat of the commercial food system. In sectors such as grocery and food processing giant asset managers Blackrock, State Street and Vanguard maintain the largest ownership stakes across many of the top firms, showing real competition to be an illusion.
💸Profiteering - Exploiting Crises of Climate, COVID and Conflict💸
The extreme market power documented in this report - a tiny number of firms controlling huge markets - is closely linked to high prices. The food barons noted in this report have capitalized on COVID to digitize processes and lay off workers. The climate crisis is invoked to promote proprietary and expensive ‘high tech’ seeds, ‘digital farming’ kit and ‘alt proteins’ which swell their coffers. These false solutions could further indebt farmers and trap them in new mechanisms of control. More recently, war in Ukraine has become a further smokescreen for profiteering.
https://etcgroup.org/content/food-barons-2022