"The global food system is systemically fragile in the same way that the global financial system was before the 2008 crash. Recent data suggests that every part of this system is now highly concentrated in the hands of a few corporations."
"It's easy to see potential vulnerabilities, such as a fertiliser supply crunch caused by the closure of the strait of Hormuz, or harvest failures caused by climate breakdown. But these are not the thing itself."
"Some of these corporations, diversifying into financial products, now look more like banks than commodity traders, but without the same level of regulation. They might claim that financialisation helps them hedge against risk."
The global food system faces systemic fragility, comparable to the pre-2008 financial crisis. Potential triggers include geopolitical events and climate breakdown. Governments are largely unprepared for these risks. A parliamentary inquiry revealed a lack of understanding among officials regarding the broader implications of food security. The concentration of power among a few corporations exacerbates vulnerabilities, with the US food system consolidating significantly more than the overall economy. Financialization of these corporations poses additional risks, as they operate with less regulation than traditional banks.
Read at www.theguardian.com
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