Thread by @ramanmann1974

Thread
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How, over the past 40 years, U.S food supply chain has become concentrated in hands of a few large multinationals, which serve as middlemen in everything from seed genetics to hog processing to supermarkets. Do we want such a business model in India; think hard, do we ?

~From 1975 to 2015, Market share of 4 largest beef packing firms increased from 25% to 85%.

~From 1988 to 2016, Market share of 4 largest soybean seed firms increased from 42% to 76%.

~From 1976 to 2015, Market share of 4 largest hog processing firms increased from 33% to 66% !

~From 1997 to 2018, Market share of 4 "top grocers" increased from 25% to 44%.

~~From 1988 to 2016, Market share of 4 largest corn seed firms increased from 59% to 85%.

~6 brands acct for half the global chocolate market, an asymmetrical market that favors only buyers & traders

~In 1990, ranchers received 59 cents of each dollar spent on beef, while retailers received 33 cents; today, 38 cents & 51 cents
~Since 2014, price farmers receive for milk has fallen by 40%, 55% below avg farm’s break-even point. 4600 dairy farms closed each year for two
years.

Now, Big 6 (Monsanto, DuPont, Syngenta, Dow, Bayer, BASF) have consolidated into a Big 4 dominated by Bayer & Corteva (new firm created after the Dow–DuPont merger), & rounded out with ChemChina & BASF. These 4 firms control more than 60% of global #seed sales !

By 1998 the large agribusiness companies had consolidated by buying up smaller firms to accumulate more IP rights. By 2008, Monsanto’s patented genetics alone were planted on 80% of US corn acres,86% of cotton acres & 92% of soybean acres. Today, these percentages are even higher

Economists say-an industry loses its competitive character when concentration ratio of the top 4 firms is <40%. The seed industry continues to exceed this benchmark. For eg-even before the Big 4 merged, 3 firms Monsanto,Syngenta & Vilmorin controlled 60% of global veg seed market

Industries with a “concentration ratio”, defined as the market share of the 4 largest Companies—of 40% or more as anticompetitive !
Such is the U.S model #consolidation
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Poultry=35%
Beef=85%
Corn #seed=85%
Soybean seed=76%
Agrochemicals at 84%
Retail food=40%
Farm equipment=40%

4 companies, 2 of which are foreign-owned, now slaughter 52% of all meat consumed in the US, more than twice the market share that the 4 largest companies held in 2002. Consolidation results in entire control being transferred to the corporations, where farmers r totally helpless

The US crop subsidy program, for example, will continue to give 80% of all farm subsidies to the top 20% of American farmers. It is little wonder that monopolies & corporate farms have grown more powerful at the expense of workers/family farmers & our babus want to ape US model🙄

The prices that the U.S #dairy monopolists pay #farmers for their milk is based not on supply & demand, but on a convoluted formula for "the price of block cheddar traded on the Chicago Mercantile Exchange"; & our Netas + Babus want to ape this #agri model. We need to be original

In the 1980s, 37 cents out of every dollar went back to the US #farmer. Today, the share has dropped to 15 cents on every dollar. This new economic reality forces farmers to survive on volumes, creating a system where only d largest farms can make a living. Get big or Get Out !🤨