Agriculture Reference
In-Depth Information
tAble 23.1
future Issues in global food Production
Issue
discussion or Impact
Global warming
Changes in temperature and precipitation patterns as well as the CO
2
fertilization effect will probably increase food production in developed
countries and decrease it in developing countries (FAO, 2002).
HIV/AIDS
Food production can be reduced due to loss of income to purchase inputs,
the need to sell farm assets to pay for treatment, and loss of skills and
knowledge when household members die (von Braun et al., 2005).
War and conflict
Conflicts result in reduced agricultural productivity; estimated losses during
1970-1997 totaled more than $121 billion (von Braun et al., 2005).
Biofuels and energy
prices
Increases in demand for biofuels may divert land and crops from food uses
to energy uses (see the section on bioenergy, agriculture, and global food
prices).
Environmental
degradation
Soil degradation and deforestation are concentrated in resource-poor areas
where growth in yields has been slower than average (von Braun et al.,
2005). “Agroecological” approaches to food production are under
development (Pinstrup-Andersen et al., 1999).
affordability (FAO, 2004). For instance, poor infrastructure for food storage and
distribution may make food extremely expensive to some consumers, or the level of
value added provided by the food supply chain may be too low (or high) relative to
the needs of consumers.
According to Kotler and Keller (2006), there are multiple benefits offered by the
global food supply chain. First, it generates cost savings due to specialization in
marketing activities and reduces exchange time. Consider what would happen if a
grocery store received direct shipments from every manufacturer that sells products
in the store. This delivery system would be chaotic as hundreds of trucks line up each
day to make deliveries, many of which would consist of only a few boxes. Instead, a
better distribution scheme would have the grocery store purchasing its supplies from
a grocery wholesaler that has its own warehouse for handling simultaneous ship-
ments from a large number of suppliers. The wholesaler will distribute to the store
in the quantities the store needs and on a schedule that works for the store. Other
benefits offered by members of food-marketing systems include ability to under-
stand customer needs regarding assortment and convenience, to perform an active
selling role using persuasive techniques, and to provide information to the primary
sector regarding consumer preferences. Moreover, the food-marketing system plays
an important role in bulk breaking. For example, it is common in “mom-and-pop”
stores in less-developed countries that edible oil is sold by the spoon. This provides
an important benefit to low-income consumers whose daily purchasing power does
not allow them to buy larger quantities, even if they have to pay (per unit of volume)
higher prices buying “by the spoon.”
An ideal food-marketing system is one that efficiently meets the needs of the
end food consumer. An executive working in a large multinational in New York has
