APHG Unit 3.2
3rd agricultural revolution
3 phases; 1. Mechanization 2. Chemical farming with synthetic fertilizers(herbicides, fungicides, pesticides) 3. Globally widespread food manufacturing Contract gaming is becoming an important aspect of the contemporary agro-food system Each of the 3 development phases began in north America. 1. Mechanization-increased use of machines in agriculture 2. Chemical farming became widespread in the 1950's in the United States then diffused to Europe in 1960 and the periphery in 1970. 3. Globally widespread food manufacturing (adding value to agricultural products through processing, canning, refining, packaging, packing) Contract farming is an agreement between farmers and processing and/or marketing firms for the supply and purchase of agricultural products by way of legal agreements. Agricultural Industrialization is the process whereby the farm has moved from being the centerpiece of agricultural production to being part of an integrated multilevel (or vertically organized) industrial process that includes production, storage, processing, distribution, marketing, and retailing.
Commodity chains(food chains)
A commodity chain is a network of labor and production processes beginning with the extraction or production of raw materials and ending with the delivery of a finished commodity. A food chain is composed of 5 connected sections: Inputs Production Processing Distribution Consumption A food chain is a specific type of commodity chain and what we will be referring to in agriculture
Subsidies
A form of government sponsored financial aid to support an industry, program, etc. Agricultural subsidies are designed so that the government can influence crop production and stabilize the price of crops. How does a farm subsidy work? Basically, the govt gives farmers money to offset the cost of farming. If a farmer takes advantage of these subsidies, they must abide by the rules set forth by the USDA (United States Department of Agriculture). If the farmer doesn't follow the rules, they can lose their subsidies. Many farm subsidies are in a policy known as the USDA Farm Bill. Below are some aspects of the Farm Bill • 85% of the money in the Farm Bill actually goes to food stamps to generate crop demand. • The Federal Land Bank and the Farm Service Agency give low interest loans to farmers to buy land or to help with production costs • When a farmer purchases a farm, they go to the local USDA office and register their farm. The farmer gets a map of the farm from USDA with soil info on it that tells the farmer what they can and can't plant according to soil. • Farmers get paid money to NOT FARM land they own that is determined by the USDA to not be productive or a risk for environmental hazards such as runoff. • If farmers follow USDA guidelines, they get a guaranteed sale price of their product from the govt. A farmer can sell to a higher buyer if they find one. • USDA pays farmers to put up storage facilities to improve quality of product. These storage facilities could cost a farmer up to $50,000.
Malnutrition
A prolonged unbalanced diet does not allow your body to receive proper nutrition. Having a non balanced diet can lead to malnutrition. Malnutrition is not a synonym of starvation although both could be present at once. If all you ate was bananas, which are healthy, you would not have a balanced diet and your health would suffer. In LDCs, it is common to have a diet based on staple grains and little else. While eating grains is fine, not having other foods available could lead no malnutrition. A farmer could chose to grow a crop with an eye on a malnourished market.
Organization of the agro-food system
Agribusiness focuses on the outputs. All stages are interrelated to each other. It is important to remember with agribusiness and the food chain that the consumers demand drives decisions (inputs). Lets start with the agricultural inputs. These include your Green Revolu,on technologies (we will talk about these next week) and farm production. Agribusiness contracts with small producers under ,ghtly related conditions for specific niche markets. The outputs are your product processing and food distribution. Because globalization and "branding" calls for standardization you start to see uniformity in the processing of products. Farmers are also growing for a particular market. In regards to food distribution you start to see new layers that represent services such as convenience foods and delivery options. The physical environment and State's farm policies (such as subsidies, protective tariffs, and laws), international food trade, and credit/financial markets can affect the food chain.
Agribusiness
Agribusiness is a trend where large corporations buy and control many different steps in a food processing industry. The term "agribusiness" is an encompassing term for business that provides a vast array of goods and services to support the agricultural industry. Agribusiness is a system; it is a set of economic and political relationships that organize food production from the development of the seed to the retailing and consumption of the agricultural product. This will make a little more sense later on in this presentation when we discuss chain reversal in agriculture (vertical integration of agriculture). So what allowed agribusiness/corporate farming to develop? Improved transportation and refrigeration.
Biotechnology
Agricultural biotechnology-technology designed to manipulate seed varieties to increase crop yields. This is the result of the 3rd agricultural revolution. The use of living organisms to produce/change a plant or animal product is known as agricultural biotechnology. Genetic manipulation used on a crop or animal to improve agricultural productivity and product is known as genetic modification. Biotechnology has led to the creating of "super-plants" or cloned plants that grow at faster rates with poor soils. These plants already have the pesticides/fertilizers integrated in their DNA. Scientists have been able to create plants that have pesticides/fertilizers integrated in their DNA, are drought resistant, not susceptible to plant diseases. GM animals are manipulated and cloned so that they produce greater outputs (more meat/faster time).
How the food chain was(prior to vertical integration)
All decisions were made at each stage. For example the producer decided the inputs and what to produce. He/she then sold the item to the processing plant who made decisions on processing. They then sold to the distributor who made decisions on distribution. The distributor then sold to the retailer. The retailer then sold to the consumer/market. There was product push, no coordination, it was short term, and slow adjusting.
Farm crisis
An event or situation that could dramatically decrease farm profits. What natural events could cause a farm crisis? What man made events could cause a farm crisis? A farm crisis can occur if crops cannot be sold for a profitable price. It could be the case that there are too many crops on the market making the prices of crops decline to amounts that are too low to make a profit. It is also possible that a spike in operating costs could become so high a farmer can't sell crops for a high enough price to recoup losses. A farm crisis could also occur if a crop is wiped out from a natural or manmade disaster. Natural Events: Frosts, prolonged winters, droughts, floods Man-Made Events: Too much product on the market; over-working of land (Dust Bowl); high oil prices (petroleum is used in many facets of farming from machine fuel to making plastics for products); war
Debates over environmental, cultural, and health impacts of: Aquaculture
Aquaculture has provided about 30% of the total fish harvest in recent years. Aquaculture Is the fastest growing sector of the world food economy. There are concerns over: Water pollution from fish waste Transfer of disease to wild fish Genetic damage to wild fish from escaped fish that have been genetically altered--An escaped salmon breeding with regular salmon would disrupt the ecosystem
Factors affecting the location of food processing facilities: Government Policies
Are there government policies in existence that make it more attractive to grow certain crops or locate processing facilities in certain areas? Subsidies can influence location of crops and food production facilities. Think back to the concept of the Enterprise Zone. An Enterprise Zone is land set aside by govts, usually city govts, to attract businesses. If a processing facility can get a low loan or low taxes, they might be persuaded to move to a certain town
Aquaculture
As in other forms of agriculture, technology can increase the yields of aquaculture.
Effects of new technologies and increased food production
Better diet- It can harm and help diets Longer life- yes because it solves some issues of famine More people to work in the factories- now you need less farmers so they go to the factories to work
Vertical coordination of agriculture
Blending of primary, secondary, tertiary, and quaternary economic activities. Traditionally business relations were on win/lose terms. Relationships were constructed as competitive with each company seeking to buy as cheaply and sell as expensively as possible. Now companies replace small farms and control all aspects of the supply chain. Now there is a market pull as the consumer and what the market wants determines the inputs. There is vertical coordination, it is long term, and fast adjustments. Also today there is a global production chain. Primary- growing the food Secondary- processing/packaging the food Tertiary- distribution and selling of the food Quaternary- finds out what the consumer wants so the farmers can grow accordingly
Debates over environmental, cultural, and health impacts of: Organic farming
Can benefit the environment but only have modest impacts on the majority of the world's people and places Has little effect on the production of staple foods Concerns over standards and sustainability- Depleting the water table in one area for organic farms is not sustainable Pricing out of smaller farms due to subsidies favoring large farms. More diverse ecosystems due to lack of synthetic pesticides It is very expensive
Hunger crisis/famine
Cataclysmic food shortages with natural or human causes. Hoe could a food shortage influence the crops a farmer might grow? Whether for humanitarian good or profit motive, a farmer could choose to grow crops in order to ease one of the above crisis. Think about it, the farmer is pretty much guaranteed a market to sell his product although the profit could be small. However, if the govt decides to purchase the product to send for international aid, the chance to make a profit increases.
Agricultural industrialization(factory farms)
Factory farms focus on raising the maximum number of animals possible on a given piece of land. A factory farm is a large, industrial operation that raises large numbers of animals for food. Over 99% of farm animals in the US are raised in factory farms, which focus on profit and efficiency at the expense of animal welfare
Effect of commercial agriculture and agribusiness on small family farms
Farmers have a guaranteed market and assured price as long as they product is uniform and meet the delivery timeline of the processor. Poor farmers especially in LDCs are Mabel to afford the investment needed for the crops like seeds and fertilizer and are not able to keep up and many times leave rural areas to urban areas. Family farms are contracted out to larger corporations
Value added specialty foods
Food is processed on the farm and significantly increased in value and more money goes to the farmer. Ex; wine, specialty cheeses, olives/nut oils, syrup, smoked/dried meats Value-added products are defined by USDA as having: A change in the physical state or form of the product (such as milling wheat into flour or making strawberries into jam). The production of a product in a manner that enhances its value (such as organically produced products). The physical segregation of an agricultural commodity or product in a manner that results in the enhancement of the value of that commodity or product (such as an identity preserved marketing system) Ex: lavender lotions and soaps and powders are value added specialty products
Market gardening
Fruits and vegetables and flowers. Small scale farms that sell to local consumers. Market Gardening produces a large diversity of crops grown on a small area of land, during a single growing season. Primarily, labor is done manually although it is a form of commercial agriculture. Market Gardens are located close to the market and found in zone one of Von Thunen's model.
Truck farms
Fruits mainly. Year round growing season. Large scale commercial farms for long distance consumers. Truck Farms are located in areas of the USA with warm climates year round. Southern California, the California Central Valley, South Texas and South Florida have a high number of truck farms. Truck farms grow mostly fruit that need warmth and cannot tolerate frost. Citrus fruits and some berries fall into this category. Truck farms ship their produce around the country and beyond taking advantage of modern infrastructure and refrigerated/frozen shipping techniques.
Debates over environmental, cultural, and health impacts of: Biotechnology
GM= Gene(cally modified There is concern that consump(on of large quan((es of GM may reduce the effec(veness of an(bio(cs and could destroy long-standing ecological balances of agriculture. There is concern that the GM plants/animals could interbreed and contaminate natural food supplies or the environment causing long-term harm. There is currently no evidence that GMO's cause harm to humans although many consumers have health concerns.
Agriculture Policy
Governments can create policies making it more favorable to grow certain crops. -subsidies -protective tariffs Most often, these policies are in the form of subsidies
Luxury crops
High value cash crops not part of a staple diet. Ex: coffee, organic produce, tobacco, macadamia nuts
Debates over environmental, cultural, and health impacts of: Genetically Modified Organisms
How do you feed an expanding world population? Opposition to GM crops are strong in some countries, for example Africa notes health problems, export problems, and increased dependence on the US. Europeans oppose GM crops as they feel they are not nutritious. Those in favor of GM crops note the higher yields, increased nutrition, and resistance to pests(creation of super pests). They also note that GM crops are better tasting to some people. There is concern that GMO companies are releasing organisms into the environment without an adequate understanding of the environmental, health, or socioeconomic consequences. Africa opposition: African farmers who export to European countries are afraid of losing their export market to Europe because they don't like GMOs Health Problems: there is concern that consuming large quantities of GM foods may reduce effectiveness of antibiotics and could destroy long standing ecological balances in local agriculture (Rubenstein). Export: As Europeans believe GM foods are not as nutritious and African farmers export to those countries there is a concern that they would lose a market. Dependence on U.S: US corporations manufacture most of the seeds for GM crops (ex: Monsanto). There is concern over needing to constantly buy from the transnational corporations. Farmers fear a genetic manipulation to the seeds that would not allow them to replant seeds after harvest and require them to buy new seeds.
Factors affecting the location of food processing facilities: Economies of scale
How does cost of production influence profitability? As explained in a previous slide, the more you produce, the cheaper the cost of production. Again, remembering Von Thunen's model, land and transportation costs will determine the location of the food processing facility. There is are locations where transportation and operating costs are too expensive to turn a reasonable profit.
Hybrid seeds
Hybrid seeds are created by cross pollinating two different but related plants in order to create a plant variety that would stand up to a farmers micro-climate(weather, soil, and predator insects). The issue with hybrid seeds is that the second generation seed will not yield the same results this farmers are dependent on the producer of these seeds
Patterns of global food distribution are affected by: political systems, infrastructure, patterns of world trade
If a country is "unfriendly" or at war this can affect the distribution of agricultural products around the world. For example the cost of chocolate can go up when countries such as the Ivory Coast are experiencing internal strife. The Ivory Coast supplies 30% of the worlds cocoa and companies such as Nestle and Cadbury receive most of their cocoa from the Ivory Coast. Sometimes countries have internal human rights issues (child labor for example) that can influence the international community on trading with them. This can also disrupt the distribution of food. Infrastructure helps ease the movement of food around the world. In some LDC's this becomes difficult as technology and lack of reliable roads can affect the ability of food to move easily within a country let alone around the world. PaIerns of World Trade: Trade agreements as we had read can increase the distribution of food. On the opposite end embargos on countries can disrupt the distribution as well.
Horticulture and fruit farming
Intensively cultured, high value luxury crops. Food crops, flowers and ornamental plants. Nutrition and aesthetics. Horticulture is the science and art of producing, improving, marketing, and using fruits, vegetables, flowers, and ornamental plants. It differs from botany and other plant sciences in that horticulture incorporates both science and aesthetics. Production and consumption of high quality fruits and vegetables allows us to maintain a healthy, balanced daily diet. Flowers and ornamental plants enrich our homes and communities, and contribute to our sense of well-being. Horticulture impacts our lives on a daily basis by providing nutritious fruits and vegetables, offering visual enjoyment, and promoting recreational activities.
Intro to the 3rd agricultural revolution
It began in the late 19th century and gained momentum throughout the 20th century. Each of the three development phases began in North America
Cattle ranching/livestock ranching
It's extensive. Distribution: -western USA/canada(cattle) -Brazil/argentina(cattle) -south africa(goats/sheep) -central asia(sheep/goats) -australia(sheep/cattle) Remember, livestock ranching is associated with lands that are ofen too harsh for raising crops. Ranches are extensive agriculture and are generally found in MDCs. Nomadic herding and pastoral nomadism are also in climates not applicable for crops but are found in LDCs.
Commercial agriculture
Large scale farming and ranching operations that employ vast land bases, large mechanized equipment, factory-type labor forces, and the latest technology. Few people or areas still have pure subsistence economies. Modifications to subsistence agricultural systems have led to farmers in those systems not only producing for themselves but primarily for a market off the farm itself. Agriculture is but one element in a complex structure that includes mining, manufacturing, processing, and the service activities of tertiary, quaternary, and quinary sectors.
Feedlot
Larger commercially raised animals such as caWle and hogs often go to a feedlot before they are sold. At a feedlot, animals are fed so that they can recover from their transportation from farm/ranch with the goal of reaching the maximum weight possible before being sold. Feedlots produce high levels of animal waste and stink like you can't imagine.
Effect of commercial agriculture and agribusiness on cultivation regions
Multi cropping is replaced with monoculture. Land is cleared and vegetation is lost in areas to facilitate agriculture and trade. Erosion can be a problem as well and increased use of chemicals in the soil. Due to the movement towards commercial monoculture farming there is a loss of food security as there is no longer a variety of native crops for consumption
Fair trade
Remember the Coffee Country video? Giving farmers fair market prices for their products. Provides a decent living wage and guarantees the right to organize. The goal of fair trade is to create safe working conditions, provides a decent living wage, and guarantees the right to organize. This is done through equitable and direct trade. When you purchase something from fair trade, the producer is getting a livable wage
Regional appellations
Some foods are associated with a local or regional geographic name for the product. Ex: champagne, parmigiano-reggiano These place-names bring higher prices at market. You can be sued for using the regional appellation on a product not actually produced/created in that region due to international trade agreements. You can't call champagne champagne in California because Italy can sue and they own that name. You will pay more for champagne than sparkling wine(what they have to call champagne in California)
Spatial patterns of dietary laws and food prefernece
Some regions of the world may have food preferences or even dietary laws due to religious reasons. Ex: The sale of pork and alcohol in restaurants is illegal in Iran due to Sharia law. Ex: Beef consumption is low in India. Food preference- in Texas we prefer meat because there is lots of ranching. In Louisiana there is Cajun because of French influence.
Genetically modified organisms
Taking genes from different species to achieve a particular end. GMOs are found in 60-70 percent of all processes food in the US Reproduction is selectively controlled in order to produce a larger number of stronger, hardier survivors. Genetic modification became widespread in the 20th century. The genetic composition of organism is altered. GM involves the mixing of genetic materials of two or more species that would not otherwise mix in nature. 10 percent of all farmland worldwide is devoted to GM crops. 3/4ths of all processed food consumed in the United States contains at least 1 GM ingredient.
Increased chemical and mechanized farming
The 3rd Agricultural revolution saw a replacement of human farm labor with machines (tractors, combines, reapers, pickers, ect). Chemical farming (the application of synthetic fertilizers to the soil such as herbicides, fungicides, and pesticides) to increase yields became widespread in the US in the 1950's then diffused to Europe in the 60's and the periphery in the 70's.
Green revolution
The Green Revolution is a term coined in the late 1960's to refer to the changes in agricultural production with so-called miracle seeds (high yield varieties), especially wheat and rice. The hope was that it would increase production in the developing world. You will be doing a project in which you research more about the Green Revolution as well as issues relating to the Green Revolution
Mediterranean cropping/agriculture
The Mediterranean climate is good for citrus crops, grapes, and olives. Figs, dates, and almonds also thrive in Mediterranean climates. These crops need warmer temperatures year round and less rain than crops such as rice or corn.
Bio revolution
The extension of scientific innovation such as genetic modification and agricultural biotechnology to all plant and animal products Because of the third agricultural revolution and it is where we are headed today
Mechanization of agriculture
The image above shows the harvesting of corn in a developed country. The machine on the left is a combine harvester. The combine cuts the corn stalk, takes the corn cob out of the husk, shells the kernels of corn off the cob and then shoots the kernels into the bed of an 18-wheeler. Equipment such as that shown above allows US farmers to work efficiently with very high yields. For example, an Iowa corn farmer can work up to 1000 acres of land by himself. Imagine 1000 football fields of planted corn. That's how much ONE FARMER can work in the USA with the proper equipment. At harvest time, the farmer would need some help with people to drive trucks, etc. Additionally, the combine in the picture above is a $1,000,000 piece of equipment and the semi-trucks used to haul the grain are around $150,000-$200,000. Farming in a MDC can make big bucks but costs big bucks as well.
Technology and economies of scale in agriculture
The more units you produce, the cheaper each unit costs to produce. This causes LDCs to remains at subsistence levels because they don't have the land to grow a lot so their production costs won't go down
Global supply chain
The supply chain consists of the continuous buying and selling of goods and services. The supply chain covers all the steps it to get a good/service from the supplier to the consumer. For example how did a bag of potato chips or fruit snacks make it to your local grocery stores? Where did the idea come from? What about the raw materials needed to produce it? Where is the factory that packaged it? How did it get to the retailer and then eventually to you? All of this is part of the global supply chain as we get raw materials and cheaper labor from different parts of the world.
High yield seeds(HYVs such as rice, wheat and maize)
These are seeds that were bred to respond to fertilizers and produce an increased amount of grain per acre planted. The introduction of HYV's led to the reduction in the varieties of seeds being used in many areas of the world. With the use of these new HYV's also came the increased use of fertilizers as well as an introduction and increased use of irrigation in many areas.
Mechanization of agriculture
This image shows how modern equipment is used to process hogs. The hog is killed and put on a hook attached to a belt that moves it to the bleeding station where the blood is drained. The carcass then moves to the "dehairing" process. After that, it is but on another belt to be split in half and further refined to smaller cuts of meet.
Organic farming/agriculture
Very lengthy process to get the label. Small farmers get affected if they can't afford to get the label even if they are organic To be organic: No genetic modifications Free of antibiotics Free of synthetic hormones No artificial fertilizers Must feed completely on organic crops Can bring higher prices than only non-GMO but it is more costly to grow
Essential Question
What factors influence the crops farmers in core countries choose to grow? Generally speaking, farmers in MDCs can grow any crop the want. These farmers are commercial farmers looking to maximize their profits. When choosing to grow a crop, there are several factors these farmers consider.
Factors affecting the location of food processing facilities: Transportation
What type of transportation is available that can properly transport products and what is the cost of that transportation? Straight off Von thunen
Factors affecting the location of food processing facilities: Markets
Where does the facility need to be located in relation to the market? This concept is one factor of Von Thunen's model. Some foods, mainly specialized crops, need to be located close to market in order to insure profitability. This takes into effect the transportation costs and land costs.
Eat local movements
You get fresher products. Eating local means minimizing the distance between production and consumption. Eating local helps preserve local and small-scale farmland. Reduces fossil fuel consumption, air pollution, greenhouse gas emissions. Supports the local economy.
