June 2013

Monday, June 24, 2013

A recent announcement by the European Commission has consequences for anyone affected by an interest rate, the price of oil or the price of wheat [read: everyone]. 

On June 15, Reuters reported that the European Commission had decided to extend the deadline for U.S. financial firms to comply with European Securities Market Authority (ESMA) regulatory deadlines. However, the compliance concession is deceptive since ESMA has yet to finish issuing rules that would apply to EU and non-EU financial firms. Rules to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act require that most trades be “cleared” on a central platform, to protect other market participants from the consequences of default by one or more counterparties to a trade.

Indeed, the U.S. and EU are among the Group of 20 members that committed to centralize clearing in 2009. ESMA is still trying to decide which commodity and financial contracts will have to be cleared. Other European market reform legislation has yet to be passed, much less implemented. In addition to extending its own deadline, the European Commission is hoping to use the “concession” as a bargaining chip to push the Commodity Futures Trading Commission (CFTC) into extending its July 12 compliance deadline for European financial firms on rules it has finalized. This proposed exchange for a European deadline extension to comply with rules it has yet to finalize, is disingenuous. Perfect synchronicity and harmonization in transatlantic rulemaking is not achievable. The CFTC should not, yet again, extend its compliance deadline beyond July 12 in response to the Commission’s gambit.

Thursday, June 20, 2013

In December 2012, I received an email from Frances (Frankie) Moore Lappé, a woman whose name I had known since I was a teenager interested in hunger and poverty issues and reading all I could on the subject. I was honored. Frankie was reaching out to organizations and individuals who work to end hunger to ask if we had read the FAO’s 2012 State of Food Insecurity in the World (SOFI) report and if so, what we had made of it. Frankie was concerned about a number of things, including that the report presented too rosy a view on how the world’s governments were doing in their ambition to eliminate hunger, and too rosy a view on what economic growth could do about the problem.

It did not take Frankie long to persuade a group of us, including IATP, to take notice and formalize our concerns. Those concerns include:

Thursday, June 20, 2013

As the U.S. Farm Bill debate drags on like a bad dream you can’t wake up from, Europe is entering the final stretch of multi-year negotiations on the 2014–2020 Common Agricultural Policy (CAP). As with the Farm Bill, agreement on the CAP is far from a sure thing.

In the U.S., we have the House of Representatives working overtime to eliminate funding for almost everything in the Farm Bill. The President is threatening to veto it if Congress takes too much from the Supplemental Nutrition Assistance Program (SNAP, or food stamp) program, which accounts for close to 70 percent of the Farm Bill’s cost.

In Europe, the CAP debates have a familiar ring over direct payments and capping and coupling aid. Unlike the U.S., high on the list are proposals designed to “Green the CAP,” which includes addressing environmental and economic challenges. The CAP debate is simplified by not including a massive food aid program like SNAP, but complicated by a process that in the current phase is called “triolgues.”

Triolgues bring together the European Parliament, the European Commission and the European Council to hammer out the final agreement. In the European Parliament, civil society organizations like ARC 2020 have led in the debates on greening the CAP. Starting in 2010, ARC 2020 issued an outline for comprehensive reform of European agriculture and rural policy. Their proposals have been met with widespread popular support but serious foot dragging from the EU ministers. A live debate between Agriculture Commissioner Dacian Cioloş and the European ParliamentAgriculture Committee Chair, Paolo De Castro on June 20 will highlight what is at stake.

Monday, June 10, 2013

As I dream of real summer weather, one of the things I look forward to most is picking strawberries with my little cousins at a pick-your-own farm near our family cabin up in Aitkin County. The first time we tried it, the kids were so excited we had to go back two times in one day and filled five ice cream gallon buckets with ruby red fruit, sweet and sun-warmed as we relished in harvesting that evening’s dessert.

Not every child gets to experience the wonder of connecting with our local food system in such a direct way, but this year’s issue of the Minnesota Grown Directory is here to help families make that connection.

Minnesota Grown is a partnership between the Minnesota Department of Agriculture and producers of specialty crops and livestock. Their annual directory of local producers is always a huge hit with our vibrant local foods community. This year’s issue, just published last week, lists nearly 1,000—a record number!—local farmers, markets and businesses where consumers can buy directly from the producer. It also boasts a strong family-friendly focus. IATP worked with Minnesota Grown to include information on Farm to Childcare programs, fun farm facts, kid-friendly activities like farm tours, and other techniques families with young children can use to engage with locally grown foods. The family-centered content is a great supplement to the detailed information on local producers the Minnesota Grown Directory always provides, and makes this year’s issue a wonderful resource for parents, teachers, childcare facilities and anyone interested in engaging with kids on local agriculture.

Thursday, June 6, 2013

Two Converging Rivers—That’s what Shuanghui means in Chinese, apparently. It seems appropriate when we look at the scale at which both Shuanghui and Smithfield operate in their respective countries. Shuanghui is said to be China’s largest meat manufacturer and Smithfield is the largest pork processor in the United States. It’s a convergence of two very big and very dirty rivers. Contrary to the common theme in media reports on the acquisition, food safety problems and environmental pollution are not just the domain of the Chinese livestock industry. One doesn’t have to look very far to see Smithfield’s own record in this regard. Unmanageable non-point source pollution from concentrated animal farms, antibiotic resistance, disease and chemical-related deaths related to poultry factories are very much associated with and originate from the American model of industrial livestock production. Smithfield was embarrassed after an undercover video of animal cruelty was taken from one of its plants and released by the Humane Society.

Tuesday, June 4, 2013

Today, 795 health professionals from across the country sent a joint letter to President Obama urging his leadership in getting the Food and Drug Administration (FDA) to jumpstart its now-stalled policies to help protect the future effectiveness of antibiotics by reducing their overuse in food animal production. The letter was delivered by IATP's Healthy Food Action, Health Care Without Harm and the Pew Charitable Trusts.

Close to 30 million pounds of the antibiotics are sold for use in U.S. food animals each year.  Many of them are identical, or nearly so, to antibiotics used in human medicine. Most are used for non-sick animals, to promote their faster growth and compensate for the risks created by raising such animals in overcrowded and often unhygienic conditions.

“In our hospitals, and in our communities, antibiotics increasingly are failing to treat drug resistant superbugs,” says David Wallinga, MD of the Institute for Agriculture and Trade Policy  and Healthy Food Action. “The huge overuse of these antibiotics on our farms, in meat production, is an important—and unaddressed—contributor to the problem.”

What this letter shows is this superbug epidemic is too important for FDA and the White House to sit on the sidelines. We need President Obama to make sure his administration leads in the fight to protect antibiotis.”

Monday, June 3, 2013

The announcement last week of a bid by China’s Shuanghui International to acquire Smithfield Foods Incorporated came midway through my research trip to Beijing for IATP’s initiative on the globalization of industrial meat production. The responses to the news from back home have been all over the map, albeit fairly predictable. But what are they saying in China? Below I share some initial views from the press, blogosphere, academia and government. I’ll have more later this week.

The government seems positive about the deal. The first thing I noticed was the use of the word “merger” in the official Xinhua News Service’s initial piece on the acquisition. (The U.S. press prefers “sale” or “takeover.”) Xinhua’s second article actually uses “Win-Win” in the title, and describes how the merger will relieve the U.S. of the burden of our excess pork while easing trade deficits and improving Shuanghui’s food safety standards. “We can learn a lot from the industry leader,” Shuanghui CEO Wan Long is quoted as saying. Clearly he has never Googled “Smithfield recall.”