Food Production and Markets

IB Geography II

Close Reading Activity

• Take the next 10 minutes to Read and Annotate “The Parable of the Golden Snail”

The Parable of the Golden Snail

• Discuss the following question in elbow partners:– From the perspective of the farmer, what is the

moral of the parable of the golden snail, and what should we take away from it? (3 min)

The Parable of the Golden Snail

• Discuss the following question in elbow partners:• How did the parable of the golden snail change, alter or

enhance your understanding of the role of science and technology in food sufficiency and deficiency? (3 min)

Objective

• By the end of this lesson, students will be able to explain and analyze the impacts at a variety of scales of trade barriers, agricultural subsidies, bilateral and multilateral agreements, and transnational corporations (TNCs) on the production and availability of food.

Starting Activity

• Every day, food is moved in huge quantities around the world. – Who produces it?– Where is it sold? – How does it get to us?

– Take 2 minutes to jot down some political, social, economic, and environmental factors that can impact the answers to these questions.

Trade Barriers • A trading bloc is an arrangement among a

number of countries to allow free trade among themselves, but to impose tariffs (additional charges) or quotas (limits on number that can be imported or exported) on other countries that may wish to trade with them.

CAP (Common Agricultural Policy)

• Introduced by the EU to increase farm productivity.

• Includes Guaranteed Prices (for unlimited production that encourages farmers to maximize their production)

• Provided a Guaranteed Market (for sure your food would be bought)

• Overproduction became a problem in 1980s-90s.

Food Dumping • Surplus food that is dumped on the world market, which lowers

prices and makes it impossible for farmers outside the trading bloc to compete.

• In Morocco for instance, a report suggested that in one year’s crop, around 40% of the tomatoes that had been cultivated to be exported to Europe failed to meet the European standards. Instead of being shipped abroad, the tomatoes were sold cheaply on Moroccan markets. Small local farmers have a hard time competing with the cheap produce and struggled to survive.

Free Trade v. Protectionism • Free Trade– Allows a country to

trade competitively with each other.

– There are no restrictions regarding what can be exported or imported.

• Protectionism – Creates restrictions to

trade.– Creates barriers to

imports as well as exports.

Agricultural Subsidies

• Agriculture is an industry that has often required financial support, particularly given the globalized nature of the world.

• In many parts of the world, agriculture is not a profitable activity due to the low prices that farmers are paid for their produce.

• An agricultural subsidy is a governmental subsidy paid to farmers to supplement their income and influence the cost and supply of their crops.

Video

• Katie Couric’s Notebook: Farm Subsidies • http://www.youtube.com/watch?v=EHlc1Pot1

V8

Bilateral Agreements• A bilateral agreement is when

one consumer enters an agreement with one producer.

• Can also occur when a consumer such as a large supermarket makes a decision e.g. the Co-op decided to only sell Fair trade bananas which meant those countries which had producers benefited.

Multilateral Agreements

• When a number of countries (for example, those in the EU), agree to import goods from a number of other countries.

• Agriculture can also be protected by the tariffs that are introduced when countries group together to form a Trading Bloc.

Transnational Corporations (TNCs)

• Includes major food corporations.• TNCs are driven by profits rather than the

desire to provide us with the best possible food.