Pros & Cons of a Global Food Market

Nearly one billion people struggle to find enough food to eat every day.

We currently live in a global economy that allows for goods from anywhere on the planet to be easily obtained nearly anywhere else on the planet. This is obviously an advantage, in terms of consumer choice and diversity, and in terms of cost. The system also carries some inherent dangers.

Economic Benefits

Economically, the global food market can benefit both consumers and producers. Producers are able to look globally for the best available price for their goods, and consumers are able to shop for the best price at their local markets. In poorer countries, this can mean obtaining a price in the North American or European markets that they would never be able to obtain selling their crops locally; at the same time, that price may be very inexpensive by the standards of developed countries. Of course, the inability of local people to afford locally produced food can also lead to increased poverty and hunger.

Choice Benefits

The global food market also has the benefit of providing a great deal of consumer choice in wealthier countries. In addition to locally produced agricultural products, consumers have access to a variety of meat, produce and packaged goods from around the world. The global food market also diminishes seasonal shortages, as well as shortages caused by poor harvests. If citrus fruit from Florida is not available, citrus fruit from North Africa probably is. If corn from Iowa isn't available, corn from Mexico probably is.

Health Consequences

In the United States, there is the U.S. Department of Agriculture, as well as federal, state and local health and safety inspectors. Although imported goods are subject to the same health and safety requirements as domestically produced foods, government does not have the same ability to inspect factories, farms and processing plants, as it would with domestically produced foods. This can cause concerns with food quality and the transmission of diseases, such as mad cow disease. This can also be a concern for foreign producers, as a single case of disease can cause borders to be closed to imports, until the problem is resolved.

Sustainability and Security

The sustainability and security of global food markets are also a cause for concern. Shipping food over great distances uses a tremendous amount of fuel. Rice produced in China may be less expensive than that produced in Louisiana; but, by the time it reaches markets in the U.S., Chinese rice will have a significantly larger carbon foot print. There is also an economic risk of losing local produce. If local farmers are priced out of the market by foreign competition, and forced to close, there is a risk of an inadequate food supply, if foreign imports are cut off for any reason.

References

• FoodProductionDaily.com; FAO debates Pros and Cons of Global Livestock Market; April, 2005
• ISEC; Bringing the Food Economy Home; Written by Helena Norberg-Hodge and Steven Gorelick
• Sustainweb.org; Some Benefits and Drawbacks of Local Food Systems; Jules Pretty; November, 2001
• Infoplease; The Global Market and Develooping Nations

Resources

• UN.org; Outcomes and Actions for Global Food Security; July, 2008