{"id":218528,"date":"2022-08-29T12:00:17","date_gmt":"2022-08-29T11:00:17","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=218528"},"modified":"2025-01-10T15:06:37","modified_gmt":"2025-01-10T15:06:37","slug":"disaster-capitalism-at-its-worst-profits-of-grain-giants-spark-global-criticism","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2022\/08\/disaster-capitalism-at-its-worst-profits-of-grain-giants-spark-global-criticism\/","title":{"rendered":"‘Disaster Capitalism at Its Worst’: Profits of Grain Giants Spark Global Criticism"},"content":{"rendered":"

As 345 million people suffer from acute food insecurity, the four corporations that control virtually all grain trade stuff their pockets with cash, pop the champagne corks, and laugh all the way to the bank. “As a short-term measure there are strong arguments for a windfall tax on the food oligopoly.” — Natalie Bennett, U.K. Green Party Peer<\/em><\/p><\/blockquote>\n

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Workers carry sacks of grain in a warehouse of the World Food Program in Abala, Ethiopia on June 9, 2022.
(Photo: Eduardo Soteras\/AFP via Getty Images)<\/p><\/div>\n

23 Aug 2022 – <\/em>\u201cOligopoly in action.\u201d<\/p>\n

That\u2019s how Kartick Raj, a Human Rights Watch researcher focused on poverty and inequality in Western Europe, responded<\/a> Tuesday to The Guardian\u2019s new reporting<\/a> on the world\u2019s four grain giants raking in record profits \u2014 which is fueling calls for a global windfall tax.<\/p>\n

“The fact that global commodity giants are making record profits at a time when hunger is rising is clearly unjust.”<\/strong><\/em><\/p><\/blockquote>\n

After noting United Nations agencies\u2019 estimates that while about 345 million people endure acute food insecurity \u2014 up over 200 million from before the COVID-19<\/a> pandemic \u2014 food prices<\/a> have skyrocketed by over 20%, journalist Fiona Harvey highlighted remarks from Olivier De Schutter, a co-chair of the International Panel of Experts on Sustainable Food Systems and U.N. special rapporteur on extreme poverty<\/a> and human rights.<\/p>\n

\u201cThe fact that global commodity giants are making record profits at a time when hunger<\/a> is rising is clearly unjust, and is a terrible indictment of our food systems<\/a>,\u201d he told Harvey.<\/p>\n

\u201cWhat\u2019s even worse, these companies could have done more to prevent the hunger crisis<\/a> in the first place.\u201d<\/p>\n

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The Defender<\/p><\/div>\n

As Harvey explained:<\/p>\n

\u201cFour companies \u2014 the Archer-Daniels-Midland Company, Bunge, Cargill, and Louis Dreyfus, known collectively as ABCD \u2014 control an estimated 70-90% of the global grain trade. \u2018Global grain markets are even more concentrated than energy markets and even less transparent, so there is a huge risk of profiteering<\/a>,\u2019<\/em> said De Schutter.<\/p>\n

\u201cHe said this year\u2019s food price surge happened despite what are thought to be abundant global grain reserves, but there was insufficient transparency from the companies to show how much grain they hold and no way to force them to release stocks in a timely way.<\/em><\/p>\n

\u201c\u2018We need to be looking at the grain giants and asking what they could have done to avert the crisis, and what they could be doing now,\u2019<\/em> De Schutter said.\u201d<\/p><\/blockquote>\n

While the four companies declined to respond to Harvey\u2019s request for comment, De Schutter added that:<\/p>\n

\u201cUltimately, we need to break up the monopolies that have a stranglehold on the food chain. A handful of companies control global seed and fertilizer markets, animal genetics, the global grain trade, and food retail. They are making huge profits at the cost of farmers<\/a>, consumers, and the environment.\u201d<\/p>\n

Using a term coined<\/a> by author<\/a> Naomi Klein, U.K. climate scientist Bill McGuire declared<\/a> in response to Harvey\u2019s article: \u201cDisaster capitalism at its worst.\u201d<\/p>\n

\u201cAs 345 million people suffer from acute food insecurity,\u201d McGuire continued, \u201cthe four corporations that control virtually all grain trade stuff their pockets with cash, pop the champagne corks, and laugh all the way to the bank.\u201d<\/p>\n

Nick Dearden, director of the U.K.-based group Global Justice Now, similarly said<\/a> that \u201cfood monopolies<\/a> rake in bumper profits as speculation drives up food prices. We have enough food for everyone, but the financial markets dictate more and more people must go hungry to fill the coffers of the super wealthy.\u201d<\/p>\n

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Record profits for grain firms amid food crisis
Record profits for grain firms amid food crisis
Record profits for grain firms amid food crisis
Record profits for grain firms amid food crisis
Record profits for grain firms amid food crisis
Record profits fhttps:\/\/t.co\/CBWaTjKKrQ<\/a><\/p>\n

— Michael Galant (@michael_galant) August 23, 2022<\/a><\/p><\/blockquote>\n