Large financial institutions play a big role in our food system. From providing credit to farmers, to influencing commodity futures markets that ultimately play a role in setting food prices, big financial players deeply influence the food chain. The latest issue of Food Ethics magazine, published out of the United Kingdom, examines how the breakdown of our financial system has affected food security.
The issue includes articles on whether our finance system is set up to value the environment and hunger; the role of big financial speculators in creating volatility in food prices; food companies and tax avoidance; and how finance could best support a sustainable food system.
IATP's Steve Suppan contributes an article on the role of commodity market deregulation in the U.S. and global food prices. Suppan writes about how speculators like Goldman Sachs and Morgan Stanley dominated agricultural futures markets to drive prices up in 2007 and early 2008, and then down as they disinvested from the market.
Food Ethics editor Tom MacMillan writes in his introduction: "The bottom line is that governments need to make the link between food security and financial regulation, to support long-term investment everywhere from the biggest companies to the smallest farmers around the world. Better rules and practices could speed us towards a sustainable food system. Right now, though, our financial institutions have their feet on the brakes."
