Sigma Nutrition Radio #563: The Financialization of the Food System – Prof. Martin Caraher
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May 20, 2025 In this enlightening discussion, Professor Martin Caraher, Emeritus Professor of Food and Health Policy at the University of London, explores the troubling financialization of food systems. He addresses how speculation affects food prices and exacerbates food poverty. The conversation also delves into the impact of corporate concentration on food security and the pressing need for reform in policy practices. Caraher emphasizes the importance of equitable access to nutritious food and proposes ethical approaches to strengthen global food systems.
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Financialization Defined
- Financialization means speculation on food commodities just to make a profit, not for using the food itself.
- This speculative trading started notably after the 2008 financial crisis and impacts prices globally, even for essential foods.
Price Hikes Bypass Growers
- Cocoa and coffee growers receive minimal benefit from price increases caused by speculation.
- Profits mostly accrue to speculators and corporations controlling global markets, squeezing small producers financially.
Trade Fragmentation in Food Security
- Countries have responded to food insecurity by restricting imports and exports to protect national food supplies.
- Trade has become fragmented, moving away from global agreements to bilateral deals due to geopolitical tensions and instability.