GREENCITY
WHOLEFOODS
Alternative Structures Within Supply Chains
Between them, the
ABCD of food
control over 70% of
the global grain
market.
New entrants such as Glencore and
Wilmar have made inroads to their
market share (20%+).
These firms have intensified vertical and
horizontal integration and have long term
implications for small-scale producers,
hunger and the environment.
the hidden hand of commerce
The A,B,C & D of Food
ADM- Archer Daniels Midland
Turnover $68 billion (2015)
•
Corporate funder to ALEC (American
Legislative Exchange Council)
•
Involved in sponsoring ‘food safety’
Bills
•
Most prominent recipient of
corporate welfare in US history
32,300 employees
428 crop procurement locations
280 ingredient manufacturing facilities
39 innovation centres
The A,B,C & D of Food
Bunge
•
Lobbying includes:
•
Turnover $61 billion (2014)
•
Expanding Biotechnology
•
35,000 employees
•
•
Lobbying expenditure $550k-$900k
Liberalised trade with Korea, Panama
& Columbia
•
Changing grain export quotas in
Ukraine
•
Denying consumers right to chose
The A, B, C & D of Food
Cargill
•
$107 billion (2016)
•
150,000 employees in 70 countries
•
Owns 5 oil palm plantations carved
from virgin rainforest
•
Turns independent farmers into de
facto bonded labourers through
complex debt schemes & empty
promises
•
Forced child labour, trafficking and
torture (Uzbekistan and Ivory Coast)
•
Mercury poisoning in Iraq- 63k tonnes
of seed grain treated with
Methylmercury
•
850,000 frozen beef patties recalled
after ecoli contamination
•
65 million gallons of acidic water into
Tampa Bay mangroves in 2012
The A, B, C & D of Food
Louis Dreyfus
•
$63 billion turnover
•
22,000 employees
•
81 million tonnes of commodities/
annum
New Entrants
In Asia:
•
In Europe:
Wilmar -$22 billion turnover (2013)
•
GlencoreXtrata- diversified from dealing
in minerals and energy
•
Acquired Canadian grain company Viterra
in 2012
•
Agricultural activities increased by 43% in
2012
•
$232 billion turnover
•
200,000 employees
90,000 employees
Cofco- $32 billion revenue
120,000 employees
Purchased a 51% stake in Nidera, a Dutch
grain trading company after China signalled
a reduction in its self-sufficiency policy.
Horizontal Integration Examples
•
ADM moving into corn based ethanol
production
•
Cargill now entering the petroleum
market
•
Louis Dreyfus involved in asset
management, real estate and
forestry
Nourishing Change since 1978
Co-operative values
Co-operatives are based on the values of:
Self-help
Self-responsibility
Democracy
Equality
Equity and Solidarity.
In the tradition of their founders, co-operative members believe in the ethical values
of honesty, openness, social responsibility and caring for others.
Co-operative Principles
The co-operative principles are guidelines by which co-operatives put their values into practice.
1. Voluntary and Open Membership
Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social,
racial, political or religious discrimination.
2. Democratic Member Control
Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving
as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at
other levels are also organised in a democratic manner.
3. Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the
following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their
transactions with the co-operative; and supporting other activities approved by the membership.
4. Autonomy and Independence
Co-operatives are autonomous, self-help organisations controlled by their members. If they enter into agreements with other organisations, including governments, or
raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.
5. Education, Training and Information
Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the
development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.
6. Co-operation among Co-operatives
Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international
structures.
7. Concern for Community
Co-operatives work for the sustainable development of their communities through policies approved by their members.
Nourishing Change:
Key Milestones for Fairtrade in Scotland
• 1960s
Oxfam shops start selling crafts and Christmas cards made in developing countries
• 1970s
Tearcraft, then Traidcraft are established as craft importers in the UK
• 1970s
Tanica instant coffee powder from Tanzania becomes the first fairly traded food product
to be imported into the UK
• 1979
VSO campaigners establish Campaign Coffee Scotland (CCS)
• 1980
Coach House in Balmore opens
• 1982
One World Shop opens in Edinburgh
• 1983
The Third World Centre opens in Aberdeen
• 1984
Commercial Distribution of coffee becomes possible due to collaboration between CCS
and Greencity Wholefoods in Glasgow
• 1986
Greencity Wholefoods and CCS jointly organise the first ever Fair Trade conference in Scotland
• 1987
Equal Exchange brand is launched in collaboration between Greencity and CCS
• 1989
Equal Exchange is launched as a co-operative in its own right due to rapid demand and growth
• 1989
The international Fair Trade Association (IFAT) is launched
• 1991
4 partners: Equal Exchange, Oxfam, Traidcraft and Twin Trading launch Cafedirect, a flagship
brand for the movement
• 1992
Cafedirect introduced in Co-Op and Safeway Scottish Stores
• 1994
Launch of the Fairtrade mark
Going forward…..direct from the farmer
…..and what of the future for organic food in Scotland?
Organic IS different
• Nutritionally different – New research has found significant nutritional differences between organic and
non-organic food
• Helps combat climate change
• Food you can trustGM ingredients, hydrogenated fats and controversial artificial food colours and
preservatives are banned
• Reduced exposure to pesticides
• Looking after our planet-Organic means working with nature not against it. No system of farming does
more to protect
• Animal WelfareOrganic animals are truly free range. This means healthier animals reared
without the use of antibiotics and wormers
50% more wildlife including pollinators such as bees
22% more bird species
75% more plant species
In the last decade, the rise in organic sales
globally is not reflected in the UK…..
•
•
•
2016 sales figures in Scotland was
£58 million (0.6% of total grocery
spend)- up 11.7% after period of
flatlining since 2008. The UK spend is
estimated at £955 million (Kantar)
•
Globally, sales exceed $80 billion
and has continually expanded the
last two decades
•
Sweden sees growth of 39% in 2016
The number of organic producers
and processors has been declining
since 2008: from 576 in 2014 to 539 in
2015
(2.3 billion euros)
The area of organic land fell 7% in
2015 to 126,000 hectares (the 7th
consecutive annual fall)
•
Germany setting a 20% target for
land conversion
•
France have set a target for the
majority of French farms to be
committed to organic or
agroecological farming by 2025
Main blockers to growth:
• 70% of total UK sales are through multiples
• Organic isn’t recognised as a category in its own right
• No single body to communicate market intelligence
• None of the certifying bodies will share information on their licencees
• Lack of organic processors and manufacturers
• No single body responsible of the organic sector
• Primary resources often imported when could be grown in Scotland
(estimated £30million lost in Scotland through this and leakage)
• Connecting businesses and consumers is not the remit of the organic certification bodies
• The Soil Association (Charity) does have b2c role but it is undeveloped
• B2B opportunities stinted due to certifying bodies holding back data
• Lack of innovation and diversity within the farming and manufacturing sectors
• Economic burden for certifying organic food is passed to end consumer
• Detailed organic import/ export figures unavailable for Scotland
• Too few large scale brands
2017 growth figures (UK)
• +66% Food For Life Catering Mark
spend
• +30% Textiles
• +19.1% Foodservice
• +13% Beauty & Wellbeing
• +10% Home Delivery
• +6.3% Independent retail
• +6.1% Supermarket sales
Opportunities
• The Good Food Nation Bill & Scottish Climate Change Bill allows input and engagement
• Formation of a Scottish Organic Trade Board will bring cohesion to the sector, run by business for business
- to provide national trade networking opportunities
- to improve supply chains
- to develop better farmer-community links
-to encourage collaborative trading
• Unfulfilled demand growth in the domestic and export markets
• Scottish Gov’t manifesto pledge to support greater uptake in public procurement
• Land reform legislation could encourage a greater number of new entrant organic farmers as well as
providing opportunities for communities to take over land to convert to organic
•