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The Global Food Trade
Food & the City
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PART A.
Background Information: Globalization
&
Trade Relations Between the Worlds Nations
Food & the City
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What is Globalization?The latest stage in a process characterized by the
spread, and intensification, of CAPITALISMacross the globe.
Globalization involves interaction and integration of increasingnumbers of PEOPLE through International trade Investment Travel Tourism Information technology Mass media
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Stages of Capitalism
Copyright 2010Pearson Education Canada
Inc 5-3
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Globalization:The Issues Since 1950
Volume of World Trade
...increase is 20-fold
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Globalization: The IssuesMovement of GOODS, SERVICES,CAPITAL
Building of large manufacturing and retailbusinesses controlled
outside the community or country (subsidiaries of TransnationalCorporations (TNCs)Walmart, Toyota, etc.direct investment
Disappearance of local enterprises
Restaurants, entertainment venues replaced by branch plants offoreign-based TNCs (affect choices of food & beveragesand otherproducts and services).
Globalization impacts environment, national & local cultures, national
& local governments, individuals physical well-being, human rights
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Globalization: The IssuesGlobalization has both advocates and
detractors.
Advocates
Poor countries benefit from increased employment
opportunities and rising standard of living.
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Globalization: The IssuesDetractors, contd
Opponents contend increased
inequalities
Wealth, power, privilege accrue for developed nations
Less developed and poorer regions exploited
World Bank shapes development policies (Africa, Latin America,Asia & Eastern Europe)
IMF, WTO & GATT (organizations and treaties) have global impacttoo
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Globalization: The IssuesWorld Bank IMFInternational Monetary Fund
WTOWorld Trade Organization
GATTGeneral Agreement on
Tariffs and Trade
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Globalization: The IssuesWorld Bank
Develop policiesAfrica, Latin America, Asia, EasternEurope
Proclaims to eradicate poverty
Criticized for producing social inequality
Economic policies contribute to, responsible for,environmental damage
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Globalization: The IssuesInternational Monetary FundIMF Established in 1944, post WWII
Response to 1930s (Dirty 30s) Great Depression
Promised to restore economic stability
Goal to increase trade
There are 184 membership nations
Intervened in major financial crises1995 & 1997-1998
Mexico, East Asia Policies criticized for increasing poverty & suffering of
ordinary citizens; and for shielding multinationals & theirwealthy backers
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Globalization: The IssuesWorld Trade OrganizationWTO Associated with globalization; absolute rule, so member
countries much comply with policies
Grew out of Uruguay Round of GATT trade talks (1986-
1994)
WTO founded in January 1995
International body with 146 member countries
To promote FREE TRADE (like GATT)
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Globalization, Inequality &Development
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Alternative Model of Global Economy
Copyright 2010 PearsonEducation Canada Inc 5-11
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Copyright 2000 by Allyn & Bacon
Gross Domestic Product (GDP)measure of
whether economy is expanding or contractingMeasures dollar value of ALL FINAL GOODS & SERVICES(domestic & foreign) produced within the borders of a countrysuch as Canada or the United States in a given year.
Used by Economists & Social Scientists
Gross National Product (GNP)
X Does NOT include goods & services produced by
foreign producers in Canada.
Does include the dollar value of goods & servicesproduced by all Canadian-ownedfirms operating in
foreign countries.
Globalization, Inequality & Development
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Copyright 2000 by Allyn & Bacon
Gross Domestic Product (GDP)measure of
whether economy is expanding or contracting
US Institute for Policy Studies
497 billionaires worldwide in 2001
Combined wealth of $1.54 trillionexceeds combinedGNPs of all nations ofSub-Saharan Africa or oil-richregions of the Middle East or North Africa
Billionaires combined wealth > combined incomes of
poorest half of all of humanity (IPS, quoted in Mokhiber& Weissman, 2002)
Globalization, Inequality & Development
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Sociological Theories ofGlobal
&Social EconomicDevelopment
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How did the globe become stratifiedinto such distinct worlds ofdevelopment?
because the poorer nations musthave fewer resources than thericher nations. Yes or No?
T bl
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Three Worlds of DevelopmentFalse assumptionthat poorer nations have fewerresources
Percentage of the WorldsMost Industrialized Nations
Industrializing Nations
Least Industrialized Nations
Table
Land Population31% 16%
20% 16%
49% 68%
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The Causes of Global Stratification1. Western Imperialism and Colonization (Britain, France,Holland, Germany, Portugal, Spain)
2. World System Theory (Expansion of Capitalism since 1500s;
began in Europe)
3. Dependency Theory
4. Culture of Poverty
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The Causes of Global Stratification1. Imperialism and Colonization (Britain, France,
Holland, Germany, Portugal, Spain)
WESTERN IMPERIALISM
Europeans pursued unlimited geographic expansion over thecenturies
They took over other countries so they could expand theirmarkets
They gained access to cheap raw materials
Backed by powerful armaments Europeans developed by newtechnologies
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The Causes of Global Stratification1. Imperialism and Colonialism
COLONIZATION (Result of WesternImperialism)
Powerful nations invaded, dominated, exploited Colonization occurred when industrialized nations made
colonies ofweaker nations and exploited their labour andnatural resources.
Drew maps--Free-for-all among European industrialized nations
European nations tended to focus onAfrica,Asia
United States concentrated on CentralandSouth America
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The Causes of Global Stratification1. Imperialism and Colonialism
COLONIZATION, contd Colonization occurred when industrialized nations made
colonies ofweaker nations and exploited their labour andnatural resources; they left a controlling force behind.
Industrialized nations needed consumers elsewhere; through
conquests, markets expanded and businessmen gained access tonew markets and raw materials (England, 1750).
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The Causes of Global Stratification1. Imperialism and Colonialism
COLONIZATION, contd
Nations that industrialized first got ahead of the rest of theworld and became the most powerful.
European nations tended to focus onAfrica,Asia
United States concentrated on CentralandSouth America
The Causes of Global Stratification
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2. World System Theory, Immanuel
Wallerstein He argued that economic, political, social, and cultural interactionshave grown between nations.
Today, these links are so great that they tie most of the worlds countries
together.There are four (4) groups of interconnected nations:1. Core nationswhere capitalism first developed (Engl., N.Europe).2. Semi-peripheryHighly dependent on trade with core nations
(Mediterranean area).3. Periphery or fringeLimited to selling cash crops to core nations,w/limited economic development (Eastern Europe, Canada).
4. Semi-peripheralLeft out of growth of capitalism, w/few economic tiesto core nations (most of Africa/Asia). They act like core countries when trading
w/periphery, but behave asperipheralnations when engaged in economicrelations w/core regions.
The Causes of Global Stratification
The Causes of Global Stratification
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2. World System Theory, Immanuel Wallerstein
Globalization
Extensive movement ofcapital, technology, people, and ideasbetweennations was ushered in by the expansion of capitalism.
Hence, NO NATION is able to live in isolation.
The Causes of Global Stratification
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The Causes of Global Stratification
3. Dependency Theory Stresses how the least industrialized nations (LINs) became
dependent on the more industrialized nations (MINs).
Least industrialized nations turned into plantations (manyspecialize in single cash crop) and minesresources taken.
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The Causes of Global Stratification4. Culture of Poverty (John Kenneth
Galbraith) Argued that some nations are crippled by a way of life that perpetuates
poverty from one generation to the next.
A way of life based on traditional values (of subsistence economics) and religious beliefs
(perhaps a reverence for the Earth).
BLAMES VICTIMS OF POOR NATIONSesp. those living in RURAL areas (farmingcommunities, e.g. rural India) who are afraid of new farming or manufacturingtechniques, for if they fail it could mean hunger or death.
It faults the characteristics of poor nations rather than internationalarrangements that benefit the most industrialized nations at their expense.
Hence, most sociologists prefer imperialism, world system theory, anddependency theoryto Galbraiths culture of poverty.
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The Structures of Globalization&Maintaining Stratification
Regardless of how GLOBALIZATION
developed, why do the same countries remainrich and other countries stay poor?
How is Global Stratification Maintained ?
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How is Global Stratification Maintained ?
1. Neocolonialism, in the 20th century, replaced
19
th
colonialism (Michael Harrington) INTERNATIONAL MARKETS, not military, is a tool for
controlling LINs.Powerful MINs determine price oftin (Bolivia), copper(Peru),
coffee(Brazil)
Control through mechanism of debt; capital pays interest (weaponspurchased from dev. nations) instead of investing in own industries.
Move in hazardous industries to LINs (chemicals, asbestos into India).
Although the LINs have their own system of governments (elected ordictatorships) they remain as dependent on the MINs as they werewhen those nations occupied them
(Film: Life & Debt, Jamaica depends on Britain as a market for its
bananas; it is especially dependent on U.S. & international funding
agents like the IMF).
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How is Global Stratification Maintained ?
2. Transnational or MultinationalCorporations
Companies that operate across many national boundaries,help to maintain the global dominance of the MINs.
In some cases, MINs directly exploit the LINs.
E.g. United Fruit Company (UFC)-Controlled natl and local politics in Central America-Ran LINs like fiefdoms for companys own profit
-U.S. marines backup company (prevent civil disobedience)
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How is Global Stratification Maintained ?
2. Transnational or Multinational
Corporations, cont`d
Multinational corporations try to work closely with ELITE of the
LINsforming INFORMAL PARTNERSHIPS betweenMULTINATIONAL CORPORATIONS.
Elite receive SUBSIDIES (payoffs), and corporations gain access to
the countrys RAW MATERIALS, LABOUR, and MARKET.
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How is Global Stratification Maintained ?
2. Transnational or MultinationalCorporations, cont`d
Play a role in changing international
stratification Unintentional by-product of worldwide search for cheap
resources and labour
NEW FACTORIES provide opportunities to develop NEW SKILLSand a CAPITAL BASE.
E.g. Pacific Rim, Asian Tigersnow have a strong capital base
and are rivaling older capitalist nations.
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Maintaining Global Stratification
3. Technology and the Maintenance ofGlobal Domination The race between the MOST and LEAST industrialized nations to
develop and apply new information technologies can be comparedto a marathon runner competing against a one-legged man.
To maintain global domination, new technologies create advantages forthe Most Industrialized Nations.
Gilletteinvesting $100 million in technology that will
maximize production of razors. Least Industrialized countries lag behind technologically.
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Anti-Globalization&Child Labour
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Anti-GlobalizationTargeting the negative practices of transnationalcorporations (TNCs) is one major strategy of the anti-globalization movement. Such protests usually focus onthe following:
1. Aim for the maximum ofprofits2. Locate where the salaries are the lowest3. Employ children and women in factories
4. Destroy the environment through production5. Obliterate cultural identities6. Amass greater power than many nation states
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Anti-Globalization
Founded in 2001 in Porto Alegre, Brazil, the World SocialForum (WSF) is NOT an organization or formal group.
Rather, it uses the INTERNET as an open space to bringtogether social movements, organizations, NGOs, andindividuals to discuss alternatives to globalization.
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Anti-Globalization
The most important restriction is compulsory education; in every
province, a young person must attend school until graduation fromhigh school or until she/he reaches the age of 18. (Canada signedconvention 182, prohibiting children to work in dangerous work environments;did not ratify convention 138, prohibiting age to work 14 & 15).
The International Labour Organization (ILO), a United NationsAgency, has established conventions regarding child labour;however, these conventions are not necessarily enforced.
In 2000 approx. 15,000 children worked as forced labour in theagricultural industry.picking cocoa beans in Ghana and Ivory Coast
Continued trafficking in young girls for sex trade (See film:Darwin`s Nightmare).
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Poverty: A Global WarningPoverty, not rising food prices,threatens about one third of the
world`s people with starvation.
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Facts Food prices have dropped by 80% since 1947,
factoring in inflation.
Solving the hunger crisis is a matter of raisingincomes, not suppressing food pricesmakes
poor poorer, and hungrier.
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Food in Canada is underpriced Farmers are going broke
People need help to afford to pay more for food
Creating more affordable housing
Job security
Partial answers to larger socioeconomic problem of food
security.
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Why are People Poor?
Structural Explanation of Poverty Social Structurefeatures of society deny some people access to education orlearning job skills.
Racial, ethnic, age, and gender discrimination
Large-scale economic changeplant closures, few unskilled jobs, marginal jobs thatpay poverty wages.
Characteristics of Individuals Explanation ofPoverty
Characteristics of individuals that are assumed to contribute to their povertystereotypes like laziness, lack of intelligence.
Sociologists citedropping out of school, early parenthood, bearing more childrenthan other classes.
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Poverty: A Global Warning
One in five (1/5) people in the world live on less than $1perday
Poverty causes 8 million to die each year
Almost 11 million children die each year before the age offive from mostly preventable diseases
Growing chasm between rich &poor nations can lead to
international violence, terrorism and threats to worldsecurity.
P A Gl b l W i d
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Poverty: A Global Warning, contd
90% ofworlds health research money focuses on healthproblems of 20% of the global population
Malaria & TB cause half the deaths in developing countries butreceive little attention or funding
25 million people in Sub-Saharan Africa have HIV/AIDSbutmedicines are too expensive
i i
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Discussion
What is the role of the international community to helpalleviate hunger,povertyand illness in developing countries?
What should the relationship be between funders and the
governments of the developing countries?
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Global & NationalStratification Systems
Canada:Wealth & Power
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Canada: Wealth & Power
Property Canadians total NET wealth = $3 trillion Includes real estate, corporate stocks, bonds, business assets Super-rich1,000 individuals hold 80% corporate stocks and bonds
-represent 2% of Canadian populationTwelve families and five conglomeratescontrol 1/3 of all corporate
assets in Canada
Family Dynastieswealth and power in Canada1300+ largest corporations in Canada in 1983 owned/controlled by
six (6) families:
Weston, Black, Desmarais, Irving, Thomson, Bronfman
Note: These families and conglomerates produce everything that most Canadians
use/consume in their daily routines and activities.
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Power Elites maintain
social inequality
Social Stratification Helps Maintain the StatusQuoSocial Inequality.
li i i S i l li
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How Elites Maintain Social Inequality
*The control of ideas is moreeffective than brute force.
Elite in every society develops ideologies to justify
its position at the topand marginalize those atthe bottom who become a cheap labour force.
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Introduction to Four Food Activists
Food & the City
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Perspectives of Four Food Activists: Author Laurel Eden Waterman`s definition of
``trying to eat sustainably``--the focus of her book:About Local Food: Four Conversations with Toronto Food
Activists
``Trying to live as consciously and compassionately as
possible in a city, and trying to live more consciously
and compassionately everyday. It`s about relationshipswith places and communities. It`s about life and earth
and love.``
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Perspectives of Four Food Activists:1. Jane Hayes
Gardener, artist, educator
2. Wayne Roberts
Manages the Toronto Food Policy Council
Writes and organizes about food system design
3. Tobey Nemeth
Chef de cuisine at Jamie Kennedy Wine Bar
Helped move the restaurant to a local food model4. Elizabeth Harris
Runs the Riverdale Farm and Brick Works Farmers` Markets
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Perspectives of Four Food Activists: Each of the four food activists differ in
the work they do and therefore their
perspectives, yetthey share VALUES
& VISION.
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Perspectives of Four Food Activists: There are multiple approaches to eating
sustainably (see Michael Pollen`s book:
Food Rules).
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PART B.
The Global Food Trade
Food & the City
What do Supersize Me and Peaceable
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What do Supersize Me and Peaceable
Kingdom have in common?
Maximum yield food per acre
Maximum profit - consumption, costs
Food processing and CAFOs profitable because of corn surplus
Fast food/food processing and CAFOs have negative impacts on:
o human health and communities
o environment and ecosystems
o animals
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Why do we have more food and still have
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Why do we have more food and still have
hunger and malnutrition?
Food waste
Spoilage (represents 40% of food grown)
Household or personal
Food retailers
Restaurants
Food farmerswhat they can`t selland novel foods
Overconsumption (meat, processing)
Redundant trade (energy waste)
Surplus (burning, dumping, spoiling)
Ex. Food Corporation of India (p. 75)
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Unfair Trade
Sometimes called free trade trade between nations
without government intervention (tariffs, subsidies etc.)
Legacy of international trade: Colonial roots
Cash crops (sugar, tea, coffee, bananas, etc)
Export dependent (surplus; cannot meet nutritional needs ofcommunity)
Vulnerable to international markets
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The international trade poverty cycle
IMF and WTOforce markets open
in exchange for loans
International competitionSets low price for good
- Race to the bottom
Farmers struggleto compete
Markets flooded withcheaper imports- economies of scale- dumping
Need loans
E i f S l ( l ll d `` t t l ``)
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Economies of Scale (also called returns to scale )
Term used by economists to refer to the situation in which the cost of
producing an additional unit of output (i.e., the marginal cost) of a
product (i.e., a good or service) decreases as the volume of output (i.e.,
the scale of production) increases (E.g. CAFOs)
It could also be defined as the situation in which an equal percentageincrease in all inputs, results in greater percentage increase in output.
Helps to understand structure of industries, their prices and output levels
Major implications for public policy, especially when it leads to naturalmonopolies, and those monopolies that ``claim to be natural`` so
governments won`t break them up.
Economies of scale definition by the Linux Information Project (LINFO)
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Protectionism
When governments intervene in this cycle
Tariffs import taxes
Subsidies government gives money to support domesticindustry and lowers costs of production & cost of food
Canada gives 280 million in agricultural subsidies
Hurts small farmers in global south
Farmers in global north also struggle
Add d f d t
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Added pressures on food system:
Growing global population
Growing global meat consumption
Peak oil (Book: Your World is About to Get A Whole Lot Smaller by
Canadian economist Jeff Rubin)
Water systemssalination, pollution, affects of climate change
Soillosing arable growing soil to industrial, commercial and
residential development; contamination due to industrial agricultural
practices Biodiversitylosses at all levels of the food chain
Climate changedifficult to change peoples mindset about wants and
needs; media influence and marketing that creates desire for ``things``
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Alternatives Green Food
Local Food (backyard, rooftop, community gardens)
Organic
Vegetarian, vegan
Fair trade
Horizontal trade
Food sovereignty
Permaculture
Slow food
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Alternatives
Locavores & Local Food (100 MileDiet)
Local transportation systems may not always be as
efficient as regional systems, depending on the mode of
transport
Trucks vs trains
E.g. goat farmer from Owen Sound
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Embodying Energy (EE)Calculating Food Miles
To accurately calculate ``food miles``, youneed to know the following:
Where the food is grown
How the food is transported
Whether the food is refrigerated
How much food is shipped at a time
If, how, and where it is processed and packaged
How far the grocery shopper travels to buy the food
and get it home
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Embodied Energy Green food is local food
Local Food, it could be said, is more important than organic
But is local greener than vegan
For instance:8 lbs ofgrain uses same amount of energy as 1 lb ofmeat
(actually, meat uses 15:1 ratio to grain, to factor in hide and hoofs,
and organic grain for meat).The issue is not miles but embodied energy. This includes energy used to get food
from farm to plate, from location where food is grown to where it is consumed.
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U.S. Food SystemSpends 14% of its total energy on
transportation, 4th behind energy spentonHome preparationRefrigeration (31%)
Agricultural production (21%) andprocessing (16%)
Wayne`s Instrumental Analysis:
Reduce energy spent on refrigeration, agricultureProduction and processing could take priority over``food miles``
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U.S. Food SystemWayne`s Instrumental Analysis:
Reduce energy spent on refrigeration,agriculture
Production and processing could take priority
Over ``food miles``Buy fewer:
Frozen foods
Animal-based foods
Processed foods
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Embodied Energy (EE)
The food miles issue fades behind SOCIAL andECONOMIC issues.
Example: Green Coffee It is shipped by boat, and then roasting it domestically
Coffee farmers rely on international markets because you can`t grow
carrots in Ethiopia`s mountains.
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Embodied Energy (EE) Considers vegetarianism and veganismFactors in cost to rainforestclearcutting trees to grow
soybeanso When soy fed to cattle EE almost increases exponentially
Factors in imported staples like tofu and legumes, nuts andolive oil
Organic production
Modes of transportation and destination
Embodying energy analysis factors all these things! Thetotal package of energy in a food item, whether it`s local,