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Future of Food

Agribusiness, food TNCs, supermarkets and fair trade

  • 2 things to know
  • Component 03

Overview

Recall questions on agribusiness and vertical integration, its advantages and criticisms, concentration in seeds and agrochemicals, food transnationals such as Unilever and their supply chains, standards and diets, Tesco and supermarket buying power, how supermarkets change the food chain and help consumers, fair trade, the Fairtrade Premium and minimum price, its criticisms, and cooperatives.

What you need to know

Answer each one before you reveal it.

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Key term

Define agribusiness.

Evaluation

Give two advantages that agribusiness brings to food supply.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define agribusiness.

    Model answer

    Agribusiness is the large-scale commercial business of farming together with everything linked to it, including inputs, processing, distribution and marketing.

  2. 2

    Explain what is meant by vertical integration in the food industry.

    Model answer

    It is a single company owning several successive stages of the chain, such as seed supply, farming, processing and distribution.

  3. 3

    Give two advantages that agribusiness brings to food supply.

    Model answer

    Economies of scale keep unit costs and retail prices low, and heavy investment in research raises yields and the consistency of the product.

  4. 4

    Give two criticisms of the growing dominance of agribusiness.

    Model answer

    A handful of firms gain great power over the prices paid to farmers and charged to consumers, and the pursuit of scale encourages monoculture and environmental damage.

  5. 5

    Why does concentration in the seed and agrochemical industries concern smallholders?

    Model answer

    A few firms supply most commercial seed and chemicals, so farmers face limited choice, rising input prices and dependence on patented varieties they are not free to save.

  6. 6

    Name a major British consumer goods transnational, formerly Anglo-Dutch, whose food brands are sold worldwide.

    Model answer

    Unilever.

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AThe lower quartile is the 2nd value, 11 cm.
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