Traders as sustainability governance actors in global food supply chains: A research agenda

Grabs, Janina; Carodenuto, Sophia

doi:10.1002/bse.2686

Cited by 92 publications

(67 citation statements)

References 85 publications

(107 reference statements)

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“…The power at the disposal of concentrated firms, and the strategies they pursue to influence the market, technology and policy contexts, overlap and reinforce each other in complex ways. Similar dynamics are taking place in other parts of food systems that are also dominated by just a handful of players, including among Big Food companies that dominate the processed food sector 57,58 , commodity trading 59,60 and food retail 1,2 .…”

Section: Strategies To Rein In Corporate Power In Food Systemsmentioning

confidence: 75%

The problem with growing corporate concentration and power in the global food system

Clapp

2021

Nat Food

169

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relatively small number of transnational firms have come to wield a high degree of influence within the global food system. Recent years have seen firms all along agrifood supply chains merge and acquire one another, to form giant 'mega-companies' that are central players in what can only be described as a profound reconfiguration of the world food economy. This process is happening in markets for farm inputs, agricultural commodity trading, and food processing and retail [1][2][3] . In parts of the global food system where just a few giant firms control a large share of the marketplace, these firms can influence the types of seeds farmers plant, what crops are grown, what breeds of livestock are raised and in what types of facilities, working conditions for food system workers, and the types and prices of food items that appear on grocery store shelves, to name just a few examples.There is long-standing concern that powerful firms in concentrated markets are more incentivized to advance the short-term interests of their shareholders rather than the public good 4,5 , a concern that extends to food systems. Civil society groups worry that concentrated agrifood firms might pursue profit maximization strategies in ways that undermine the livelihoods of small-scale producers, push up prices, limit product choices and damage the environment. As preparations are underway for the 2021 UN Food Systems Summit (UNFSS), which has goals of making food systems more equitable, healthy and sustainable, civil society groups have expressed concern that the Summit agenda does not sufficiently focus on the implications of corporate power in food systems 6 . This relative neglect is especially puzzling in the context of growing global concern about the potential harm from concentrated markets in other sectors, such as Big Tech. Because food systems are so important for multiple reasons-food is a basic need as well as a basic human right, food systems provide livelihoods for nearly a third of humanity, and food systems are intimately connected to ecosystems-it is imperative that we have a better understanding of the potential consequences of corporate concentration and power in the sector.This Perspective examines the implications of corporate power in one highly concentrated sector-the global seed and agrochemical industry-that has become more consolidated in recent years 7,8 . The merger of Dow and DuPont in 2015, which spun out a new agricultural input firm, Corteva Agriscience, was one of three major mergers that the agricultural seed and chemical industry saw in the 2015-2018 period. ChemChina purchased Syngenta in early 2016, shortly after the Dow-DuPont deal was announced, and in 2018 Bayer purchased Monsanto. What was already a highly concentrated industry dominated by what were known as the Big Six firms since the early 2000s is now dominated by just four large firms: Bayer, Corteva, ChemChina-Syngenta and BASF (which grew by purchasing assets the other firms sold to get their merger deals approved by regulators).Closer exam...

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Section: Strategies To Rein In Corporate Power In Food Systemsmentioning

confidence: 75%

The problem with growing corporate concentration and power in the global food system

Clapp

2021

Nat Food

169

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“…Several sustainability challenges related to the organic cocoa value chain have been identified both in the literature [43,46] and in this study. These mainly relate to the economic dimension of sustainability (governance and powers and interactions of various stakeholders along the value chain), but also, and less, to the environmental [47] and social [44] dimensions.…”

Section: Discussionmentioning

confidence: 91%

Organic Cocoa Value Chain Sustainability: The Perception of São Tomé and Príncipe’s Stakeholders

2021

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Cocoa farming in São Tomé and Príncipe (STP) faces several challenges due to its poor socioeconomic context, the adverse impact of climate changes, the complex and limited access to global value chains, and worldwide demand pressure for higher cocoa quality and productivity. This exploratory research investigates potential pathways to a more sustainable organic cocoa (OC) production in STP by mapping the perceptions of the stakeholders involved in its value chain. Qualitative interviews, field observation, and focus group discussions were applied to understand how sustainability dimensions, drivers, impacts, and challenges of OC are perceived and how these three dimensions can be improved and balanced. The gathered perceptions are rather diverse, reflecting the stakeholders’ position and knowledge of the specific contexts and processes. Producers do not perceive how governance is adopting new organizational structures or practices that allow for an effective sustainability improvement. Most stakeholders recognize that market-related factors drive the sustainability adoption and that financing-related constraints challenge their wide implementation. There are trade-offs and power asymmetries in the OC value chain, which manifest differently, due to the governance approaches, processes, overall regulations, and training of producers. An alignment of perceptions and activities as well as a stronger cooperation between cooperatives, private firms, and public institutions is strongly recommended.

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“…Despite the importance of traders’ actions for sustainable procurement efforts, few studies address how traders operate in countries of production ( 4 , 6 ). The academic literature on sustainable supply chains is instead focused on apparel, automotive, chemical, electronics, and retail companies ( 7 , 8 ), and where studies do analyze traders’ sourcing, they use varying terminology (table S1) and focus on single sectors ( 2 , 9 – 12 ), limiting learning across contexts.…”

Section: Introductionmentioning

confidence: 99%

Addressing indirect sourcing in zero deforestation commodity supply chains

Ermgassen¹,

Lima²,

Bellfield³

et al. 2022

Sci. Adv.

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The trade in agricultural commodities is a backbone of the global economy but is a major cause of negative social and environmental impacts, not least deforestation. Commodity traders are key actors in efforts to eliminate deforestation—they are active in the regions where commodities are produced and represent a “pinch point” in global trade that provides a powerful lever for change. However, the procurement strategies of traders remain opaque. Here, we catalog traders’ sourcing across four sectors with high rates of commodity-driven deforestation: South American soy, cocoa from Côte d’Ivoire, Indonesian palm oil, and Brazilian live cattle exports. We show that traders often source more than 40% of commodities “indirectly” via local intermediaries and that indirect sourcing is a major blind spot for sustainable sourcing initiatives. To eliminate deforestation, indirect sourcing must be included in sectoral initiatives, and landscape or jurisdictional approaches, which internalize indirect sourcing, must be scaled up.

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Traders as sustainability governance actors in global food supply chains: A research agenda

Cited by 92 publications

References 85 publications

The problem with growing corporate concentration and power in the global food system

The problem with growing corporate concentration and power in the global food system

Organic Cocoa Value Chain Sustainability: The Perception of São Tomé and Príncipe’s Stakeholders

Addressing indirect sourcing in zero deforestation commodity supply chains

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