NURTURING THE HUMAN SCALE - Cultivating economic resilience through local food production and processing
Small producers are the backbone of local economies, playing a crucial role in fostering an equitable and just society. Domestic modes of production and consumption not only enhance livelihoods and human well-being but also contribute to building a more resilient economy. However, in an economy that prioritises (big) corporates dominance, the position of small producers becomes a critical concern.
In a global society that claims to prioritise the well-being of people and the environment and at the same time increase social and economic inequalities, we are forced to wonder: would that also be the case if small producers would rule the economy?
Small producers and farmers often face challenges when competing against multinationals that possess greater resources and market influence. This results in the marginalisation of smaller stakeholders, limiting their access to markets, resources, and fair opportunities to thrive, which also leads to negative consequences for local communities, including economic inequalities, loss of cultural heritage, and environmental degradation. Not only multinational companies have been exploiting natural resources but also cutting off the table of the local producers and food processors and their viability in the local markets. This has resulted in the decline of the economic viability of domestic markets, making it more difficult for MSMEs (Micro, Small and Medium Enterprises) to survive.
The dominance of agro-industrial corporations in the market has increased investments in foreign lands, which unfortunately frequently have negative consequences for local communities. Not only their land is grabbed, also water is taken for monocultural production, using a lot of chemicals that is also poisoning the soil and groundwater. This situation exacerbates the challenges faced by local producers, who find themselves forced into leaving their lands and relocating to urban areas in search of new job opportunities. In fact, this trend has reached the point where, for the first time, more people reside in cities than in rural areas, leading to a loss of economic resilience.It is alarming that most of the environmental defenders that are killed, are victims of landgrabbing, where agro-industrial companies are the aggressors.
Another critical factor contributing to the economic marginalisation of local producers and the advantage gained by large enterprises is the lengthening of the supply chain within the agricultural industry, a direct result of globalisation. The concentration of food production in land-rich countries has further widened the gap between the areas where food is produced and where it is consumed. This growing distance has led to the emergence of supermarkets offering food from unspecified origins, the so-called food from nowhere, primarily supplied by multinational brands and sourced from regions able of providing large quantities at low prices. This pattern presents a significant problem as consumers are increasingly unaware of the impact their purchases have on both the land and the local economy. More than often the processed food traveled all around the world to land on your plate.
The lack of environmental awareness, transparency, and understanding of the effects caused by this disconnected supply chain all contribute to the maintenance of the status quo. In today's global economy, characterized by profound social inequalities and environmental degradation, consumers unintentionally contribute to this system. The current economic model reinforces a situation where multinational corporations dominate, while local producers struggle to compete, both in the Global North as in the Global South. This scenario undermines local and sustainable economies and perpetuates the cycle of social and environmental imbalance.
So, how can we invest in an economy that does not centralize power in a handful of companies, but rather allows local producers to thrive building a more resilient and fair economy? How can we ensure that the local communities are the primary beneficiaries of the local natural resources and that they are not exploited for the profit only of foreign shareholders?
To address these challenges and foster economic resilience, supporting local and small producers is crucial. By promoting community-based businesses, we invest in food sovereignty, the survival of their culture, their history and help them preserve their livelihoods, instead of reinforcing the profit-maximizing business model of big enterprises. Promoting local producers can prevent rural residents from migrating to cities, by providing them with opportunities to maintain their traditional livelihoods. Also, prioritizing domestic and local markets reduces the environmental damage associated with long-distance transportation, deforestation, pollution and biodiversity loss. It will increase awareness about sustainable practices, and promote transparency and trust in the supply chain.
The World Fair Trade Organization (WFTO) works to facilitate market access for those small producers and farmers who genuinely contribute to sustaining local livelihoods and communities. WFTO advocates Fair Trade principles prioritizing transparency, equity, and sustainability in economic transactions to create fair economies for all. By embracing our 10 Fair Trade Principles, we create a stronger domestic market where local enterprises can thrive, thus investing in their communities and land, and fostering resilient local economies.
When purchasing products from Fair Trade Enterprises and supporting small producers rather than big corporations, it is possible to leverage the power of globalization and distant connections between producers and consumers to promote fair economies.
From Africa to Europe, from Asia to the Pacific and the Americas, we recognise the urgent need for a transformative change in our globalised economy to combat the marginalisation of local producers by promoting small, locally rooted enterprises. By embracing and strengthening both local production and consumption, we lay out the foundation for more resilient economies.
It is essential to recognise that Fair Trade Enterprises extend beyond charity and are about supporting local economies, regardless of their geographical location. Let's join hands in building economies that are robust, inclusive, and ultimately more resilient for the benefit of all!
By Lucia Gilmozzi
References: Telecoupling. Exploring Land Use Change in a Globalised World. Cecilie Friis, Jonas Ø Nielsen. Palgrave Macmillan