Power concentration in the global Food System

The document argues that the global food system is experiencing unprecedented power concentration driven by mega-mergers and the financial sector, now further accelerated by Big Data technologies. This consolidation allows a small group of agri-food giants to control the value chain from seeds and chemicals to retail, squeezing small-scale farmers' incomes and reducing their autonomy. The author warns that the 'Big Data platform'—utilizing AI, sensors, and blockchain—shifts commercial advantages to those with the most data, potentially marginalizing peasant food webs. The briefing advocates for agroecology and the protection of small-scale producers' rights as a sustainable alternative to the industrial model.

• A small number of corporations have achieved extreme dominance in the seeds and agrochemicals sectors. Following mega-mergers in 2017-2018, four companies control approximately 70 percent of global agrochemical sales and two thirds of corporate seed sales worldwide.
• The financial sector has become a primary driver of consolidation in the food chain, particularly after the 2007-2008 financial crisis. Large asset management funds hold significant stakes in major agribusinesses; for example, in 2016, the six largest asset managers jointly owned between 15 and 33 percent of shares in the 'Big Six' agrochemical and seed firms.
• The emergence of 'Big Data' platforms is shifting competitive advantages toward companies capable of manipulating vast amounts of information. This allows tech giants and agri-food corporations to bypass traditional intermediaries and negotiate directly with farmers, further encouraging corporate concentration.
• Power concentration negatively impacts small-scale food producers, who are responsible for over 70 percent of global food production. Effects include squeezed incomes due to higher input prices and lower produce prices, reduced autonomy through unfavorable contracts, and the loss of information control as data from sensors and drones is captured by corporations.
• The industrial food system is identified as a leading cause of climate change due to its contribution to greenhouse gas emissions. Further consolidation is expected to exacerbate environmental risks, including biodiversity loss, soil deterioration, and the erosion of genetic diversity through a focus on limited commercial breeds.
• New technologies such as synthetic biology (SynBio), gene editing, and blockchain are being integrated into the industrial chain. While blockchain can reduce transaction costs by up to 40 percent, 'Dark Pools' trading platforms may hide commodity market movements, potentially jeopardizing food security for import-dependent countries.

APA

Donicie, C. (2019). Power concentration in the global Food System. Friends of the Earth International. https://www.foei.org/wp-content/uploads/2020/12/2119-FoEI-Power-concentration-in-the-global-food-system-04-mr.pdf

Chicago

Donicie, Camiel. Power concentration in the global Food System. Friends of the Earth International, 2019. https://www.foei.org/wp-content/uploads/2020/12/2119-FoEI-Power-concentration-in-the-global-food-system-04-mr.pdf.

Wikipedia

{{cite report |last1=Donicie |first1=Camiel |title=Power concentration in the global Food System |publisher=Friends of the Earth International |date=April 2019 |url=https://www.foei.org/wp-content/uploads/2020/12/2119-FoEI-Power-concentration-in-the-global-food-system-04-mr.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{donicie2019power, author = {Donicie, Camiel}, title = {{Power concentration in the global Food System}}, institution = {Friends of the Earth International}, year = {2019}, month = apr, url = {https://www.foei.org/wp-content/uploads/2020/12/2119-FoEI-Power-concentration-in-the-global-food-system-04-mr.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }