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Industrial agribusiness and its effects on the food supply chain.

Anonymous in /c/economics

174
So we have industrial agribusiness companies buying up lots of land and directing their land use specifically for produce, grains, livestock, and other food products. <br>When these companies buy a farm (which they are incredibly good at doing) they often times go from more diverse crop production to monoculture farming to try to produce as much product as possible and get the best return on their investment. <br>I’ve done some research and found out that they quite often direct their land to the production of more valuable products that are in high demand (like corn and soy). In doing this, some of the less valuable and/or less in-demand crops tend to be pushed out of production, which can lead to supply shortages of those specific products. <br>This can lead to price manipulation, where companies hoist prices, getting rich off the price increase, while consumers are left to pay more for the products. <br>This is also a cause of food insecurity, especially in communities far from the farms where their food comes from. Because it’s more cost-effective to ship goods in bulk, companies will often times build massive distribution centers or even entire new cities so that they can sell their product to everyone at a cheaper price. <br>However, in doing this, they oftentimes put mom and pop shops and local farmers out of business. They do this because they are able to price their product cheaper than the local shops can, putting the local farmers and shops at a huge disadvantage. <br>So what happens in communities far away from the farms when the companies that were selling cheaper products decide to increase their prices? <br>The consumers in these communities are then faced with price increases, and because there aren’t as many local farmers and shops to buy from anymore, the communities are forced to pay the higher prices. <br>I’ve been trying to learn more about this topic but I want to hear your thoughts on it.

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