Global Food System on Brink of Collapse: The Dangers of Corporate Control and Lack of Regulation

The global food system is facing an unprecedented threat of collapse, much like the financial system did in 2008. The concentration of power in the hands of a few large corporations has led to a loss of diversity, redundancy, and modularity, making the system highly vulnerable to shocks.

Recent data suggests that every part of this system is now highly concentrated in the hands of a few corporations, which have been consolidating both vertically and horizontally. One recent study found that the US food system has “consolidated nearly twice as much as the overall economic system”. Some of these corporations, diversifying into financial products, now look more like banks than commodity traders, but without the same level of regulation.

These vulnerabilities are exacerbated by the use of just-in-time supply chains and the funnelling of much of the world’s trade through a number of chokepoints. Some people have long warned that the strait of Hormuz, alongside the Suez canal, Turkish straits, Panama canal and straits of Malacca, are critical chokepoints, whose obstruction would threaten the flow of food, fertiliser, fuel and other crucial agricultural commodities.

When a system has lost its resilience, it’s hard to predict just how and when it could go down. The collapse of one corporation? The simultaneous closure of two or more chokepoints? A major IT outage? A severe climate event coinciding with a geopolitical crisis? The next step could be contagious bankruptcy and cascading failure across sectors.

We know what needs to happen: break up the big corporations; bring the system under proper regulatory control; diversify our diets and their means of production; reduce our dependence on a handful of major exporting countries; build strategic food reserves, accessible to people everywhere. But there’s a problem, and it’s not just Trump. Almost all governments are beholden to corporate and financial power.

The best we can hope for is that braver politicians in our own countries seek to insulate us from the worst impacts. A crucial step is to encourage a shift to a plant-based diet. People struggle to see the relevance, but it’s simple. A plant-based diet requires far fewer resources, including just a quarter of the land a standard western diet requires and much less fertiliser and other inputs.