Thursday, November 17, 2011

Commercial Trade

International exports and imports

The World Bank reported that the European Union was the top food importer in 2005, followed at a distance by the USA and Japan. Food is now traded and marketed on a global basis. The variety and availability of food is no longer restricted by the diversity of locally grown food or the limitations of the local growing season.[43] Between 1961 and 1999, there was a 400% increase in worldwide food exports.[44] Some countries are now economically dependent on food exports, which in some cases account for over 80% of all exports.[45]
In 1994, over 100 countries became signatories to the Uruguay Round of the General Agreement on Tariffs and Trade in a dramatic increase in trade liberalization. This included an agreement to reduce subsidies paid to farmers, underpinned by the WTO enforcement of agricultural subsidy, tariffs, import quotas, and settlement of trade disputes that cannot be bilaterally resolved.[46] Where trade barriers are raised on the disputed grounds of public health and safety, the WTO refer the dispute to the Codex Alimentarius Commission, which was founded in 1962 by the United Nations Food and Agriculture Organization and the World Health Organization. Trade liberalization has greatly affected world food trade.[47]

Marketing and retailing

Packaged food aisles of supermarket in Portland, Oregon, United States of America
Food marketing brings together the producer and the consumer. It is the chain of activities that brings food from "farm gate to plate".[48] The marketing of even a single food product can be a complicated process involving many producers and companies. For example, fifty-six companies are involved in making one can of chicken noodle soup. These businesses include not only chicken and vegetable processors but also the companies that transport the ingredients and those who print labels and manufacture cans.[49] The food marketing system is the largest direct and indirect non-government employer in the United States.
In the pre-modern era, the sale of surplus food took place once a week when farmers took their wares on market day into the local village marketplace. Here food was sold to grocers for sale in their local shops for purchase by local consumers.[25][41] With the onset of industrialization and the development of the food processing industry, a wider range of food could be sold and distributed in distant locations. Typically early grocery shops would be counter-based shops, in which purchasers told the shop-keeper what they wanted, so that the shop-keeper could get it for them.[25][50]
In the 20th century, supermarkets were born. Supermarkets brought with them a self service approach to shopping using shopping carts, and were able to offer quality food at lower cost through economies of scale and reduced staffing costs. In the latter part of the 20th century, this has been further revolutionized by the development of vast warehouse-sized, out-of-town supermarkets, selling a wide range of food from around the world.[51]
Unlike food processors, food retailing is a two-tier market in which a small number of very large companies control a large proportion of supermarkets. The supermarket giants wield great purchasing power over farmers and processors, and strong influence over consumers. Nevertheless, less than 10% of consumer spending on food goes to farmers, with larger percentages going to advertising, transportation, and intermediate corporations.[52]

Prices

Some essential food products including bread, rice and pasta
It was reported on March 24, 2008, that consumers worldwide faced rising food prices.[53] Reasons for this development include changes in the weather and dramatic changes in the global economy, including higher oil prices, lower food reserves, and growing consumer demand in China and India.[53] In the long term, prices are expected to stabilize.[53] Farmers will grow more grain for both fuel and food and eventually bring prices down.[53] Already this is happening with wheat,[54][55] with more crops to be planted in the United States, Canada, and Europe in 2009. However, the Food and Agriculture Organization projects that consumers still have to deal with more expensive food until at least 2018.[53]
It is rare for the spikes to hit all major foods in most countries at once. Food prices rose 4% in the United States in 2007, the highest increase since 1990, and are expected to climb as much again in 2008. As of December 2007, 37 countries faced food crises, and 20 had imposed some sort of food-price controls. In China, the price of pork jumped 58% in 2007. In the 1980s and 1990s, farm subsidies and support programs allowed major grain exporting countries to hold large surpluses, which could be tapped during food shortages to keep prices down. However, new trade policies have made agricultural production much more responsive to market demands, putting global food reserves at their lowest since 1983.[53]
Food prices are rising, wealthier Asian consumers are westernizing their diets, and farmers and nations of the third world are struggling to keep up the pace. The past five years have seen rapid growth in the contribution of Asian nations to the global fluid and powdered milk manufacturing industry, which in 2008 accounted for more than 30% of production, while China alone accounts for more than 10% of both production and consumption in the global fruit and vegetable processing and preserving industry. The trend is similarly evident in industries such as soft drink and bottled water manufacturing, as well as global cocoa, chocolate, and sugar confectionery manufacturing, forecast to grow by 5.7% and 10.0% respectively during 2008 in response to soaring demand in Chinese and Southeast Asian markets.[56]

Famine and hunger

Food deprivation leads to malnutrition and ultimately starvation. This is often connected with famine, which involves the absence of food in entire communities. This can have a devastating and widespread effect on human health and mortality. Rationing is sometimes used to distribute food in times of shortage, most notably during times of war.[10]
Starvation is a significant international problem. Approximately 815 million people are undernourished, and over 16,000 children die per day from hunger-related causes.[57] Food deprivation is regarded as a deficit need in Maslow's hierarchy of needs and is measured using famine scales.[58]

Food aid

Food aid can benefit people suffering from a shortage of food. It can be used to improve peoples' lives in the short term, so that a society can increase its standard of living to the point that food aid is no longer required.[59] Conversely, badly managed food aid can create problems by disrupting local markets, depressing crop prices, and discouraging food production. Sometimes a cycle of food aid dependence can develop.[60] Its provision, or threatened withdrawal, is sometimes used as a political tool to influence the policies of the destination country, a strategy known as food politics. Sometimes, food aid provisions will require certain types of food be purchased from certain sellers, and food aid can be misused to enhance the markets of donor countries.[61] International efforts to distribute food to the neediest countries are often coordinated by the World Food Programme.[62]

Safety

Salmonella bacteria is a common cause of foodborne illness, particularly in undercooked chicken and chicken eggs
Hazard Analysis and Critical Control Points (HACCP) Flowchart
Foodborne illness, commonly called "food poisoning", is caused by bacteria, toxins, viruses, parasites, and prions. Roughly 7 million people die of food poisoning each year, with about 10 times as many suffering from a non-fatal version.[63] The two most common factors leading to cases of bacterial foodborne illness are cross-contamination of ready-to-eat food from other uncooked foods and improper temperature control. Less commonly, acute adverse reactions can also occur if chemical contamination of food occurs, for example from improper storage, or use of non-food grade soaps and disinfectants. Food can also be adulterated by a very wide range of articles (known as "foreign bodies") during farming, manufacture, cooking, packaging, distribution, or sale. These foreign bodies can include pests or their droppings, hairs, cigarette butts, wood chips, and all manner of other contaminants. It is possible for certain types of food to become contaminated if stored or presented in an unsafe container, such as a ceramic pot with lead-based glaze.[63]
Food poisoning has been recognized as a disease since as early as Hippocrates.[64] The sale of rancid, contaminated, or adulterated food was commonplace until the introduction of hygiene, refrigeration, and vermin controls in the 19th century. Discovery of techniques for killing bacteria using heat, and other microbiological studies by scientists such as Louis Pasteur, contributed to the modern sanitation standards that are ubiquitous in developed nations today. This was further underpinned by the work of Justus von Liebig, which led to the development of modern food storage and food preservation methods.[65] In more recent years, a greater understanding of the causes of food-borne illnesses has led to the development of more systematic approaches such as the Hazard Analysis and Critical Control Points (HACCP), which can identify and eliminate many risks.[66]
Recommended measures for ensuring food safety include maintaining a clean preparation area with foods of different types kept separate, ensuring an adequate cooking temperature, and refrigerating foods promptly after cooking.[67]
Foods that spoil easily, such as meats, dairy, and seafood, must be prepared a certain way to avoid contaminating the people for whom they are prepared. As such, the general rule of thumb is that cold foods (such as dairy products) should be kept cold and hot foods (such as soup) should be kept hot until storage. Cold meats, such as chicken, that are to be cooked should not be placed at room temperature for thawing, at the risk of dangerous bacterial growth, such as Salmonella or E. coli.[68]

Allergies

Some people have allergies or sensitivities to foods which are not problematic to most people. This occurs when a person's immune system mistakes a certain food protein for a harmful foreign agent and attacks it. About 2% of adults and 8% of children have a food allergy.[69] The amount of the food substance required to provoke a reaction in a particularly susceptible individual can be quite small. In some instances, traces of food in the air, too minute to be perceived through smell, have been known to provoke lethal reactions in extremely sensitive individuals. Common food allergens are gluten, corn, shellfish (mollusks), peanuts, and soy.[69] Allergens frequently produce symptoms such as diarrhea, rashes, bloating, vomiting, and regurgitation. The digestive complaints usually develop within half an hour of ingesting the allergen.[69]
Rarely, food allergies can lead to a medical emergency, such as anaphylactic shock, hypotension (low blood pressure), and loss of consciousness. An allergen associated with this type of reaction is peanut, although latex products can induce similar reactions.[69] Initial treatment is with epinephrine (adrenaline), often carried by known patients in the form of an Epi-pen or Twinject.[70][71]

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