Food System Consolidation Fuels Exploitation; Women Leaders Build Equitable Alternatives
TL;DR
- The concentration of power within the food system, exemplified by "barons" controlling industries like sugar, berries, and distribution, leads to exploitative labor and environmental practices, as seen with Driscoll's contracting model.
- The shift from antitrust enforcement to the "consumer welfare standard" has enabled massive consolidation in the food sector, allowing companies to acquire competitors if prices decrease, regardless of broader societal impacts.
- Industrial agriculture, particularly corn production driven by the ethanol mandate, contributes to environmental degradation, including water crises and elevated cancer rates in regions like Iowa, by prioritizing production over ecological health.
- Large food distributors like Sysco achieve market dominance through continuous acquisition of smaller companies, often flying under antitrust scrutiny by making numerous small purchases rather than one large merger.
- The historical link between monopolies and fascism, as demonstrated by IG Farben's financing of the Nazi regime, highlights how unchecked economic power can corrupt political systems and has lasting ethical implications for modern corporations.
- Women leaders in sustainable food systems, often operating from the margins, are crucial drivers of change by building transparent, direct supply chains, offering a vital counterpoint to opaque and extractive industrial models.
- Cooperative models, such as Organic Valley for dairy farmers and Sonia Strobel's consumer-supported fishery, provide essential infrastructure, peer networks, and economic protection for smaller producers against dominant market forces.
Deep Dive
Our food system is not merely broken; it has been strategically captured by powerful dynasties and corporations prioritizing profit over public well-being and environmental health. This consolidation, driven by a shift in antitrust frameworks, has led to devastating consequences for farmers, communities, and the environment, necessitating a fundamental rebuilding through localized, transparent, and equitable food systems, often championed by women leaders.
The concentration of power in the food industry is a direct result of a deliberate dismantling of antitrust principles that once curbed corporate overreach. The shift to a "consumer welfare standard," which allows mergers if prices decrease, has facilitated rampant consolidation, particularly in agriculture. Companies like Driscoll's, which controls a third of the berry market without growing a single berry, exemplify this model by contracting production to regions with lower labor and environmental standards, a practice Frerick likens to the exploitative sharecropping model. Similarly, Cargill, the largest private company in America, operates as an invisible middleman, its vast global grain empire echoing the reach of the 19th-century British Empire, unburdened by consumer scrutiny due to its lack of direct consumer-facing brands. This unchecked power extends to financial markets, where families like the Reimanns, with ties to Nazi Germany and forced labor, have funded vast holdings in coffee and bakery brands, illustrating how historical exploitation can directly finance contemporary monopolies.
The systemic corruption of the food system is evident in policy decisions that benefit large corporations at the expense of local control and environmental health. In Iowa, the stripping of local control over agricultural operations in 1996 allowed for the proliferation of large-scale confinement buildings, or CAFOs, despite significant public opposition. This regulatory capture, exemplified by former Secretary of Agriculture Tom Vilsack's actions, has transformed Iowa into an "extraction colony," where land produces immense wealth that does not remain in communities, leading to environmental degradation, including a water crisis and elevated cancer rates. The mandate for ethanol production further exacerbates this, diverting prime farmland to fuel production and contributing to environmental issues. This narrative of policy manipulation and its detrimental effects on communities and the environment is a recurring theme, starkly contrasting with the potential for Iowa to be a model of agricultural beauty.
Amidst this consolidation and corruption, a counter-movement is emerging, driven by women leaders focused on rebuilding a more equitable and sustainable food system. These women often operate on the margins, where innovation and change are more likely to take root. Shirley Sherrod, an icon of the African American food sovereignty movement, exemplifies this by co-founding New Communities, the first land trust for landless Black people, demonstrating how cooperative enterprises and mutual aid can empower disenfranchised groups, a lesson echoed by Matsumoto's family experience in Japanese internment camps and the prisoner-run cooperatives that emerged. Farms like Full Belly Farm in California showcase successful diversified organic models, generating revenue through CSAs, festivals, and various products, though they face challenges from corporate encroachment and greenwashing in the organic market. Organizations like Red Tomato act as vital food hubs, leveling the playing field for smaller producers by creating specialized certifications, like their eco-certified program for Northeastern orchards, and educating consumers on the value of regionally produced, sustainably grown food.
The dairy and seafood industries also illustrate this dichotomy between industrial consolidation and alternative models. Commodity dairy systems have led to the closure of countless small farms, with remaining cows often confined and over-milked, a stark contrast to pasture-based dairy farming that emphasizes soil health, biodiversity, and animal welfare. Cooperatives like Organic Valley offer smaller farms the protection of a large organization, providing essential services, logistical support, and, crucially, a strong peer network that fosters a sense of mission and belonging. In fisheries, initiatives like Sonia Strobel's consumer-supported fishery provide an alternative to the export-driven, industrialized seafood market, directly connecting small fishers, including Indigenous women, with consumers and ensuring a more equitable distribution of resources. These efforts, alongside urban agricultural projects like Alma Backyard Farms in Compton, which integrates restorative justice with food production, highlight a growing movement focused on feeding both the soil and the soul, fostering connection, belonging, and community resilience. The enduring impact of these localized efforts lies in their ability to create tangible solutions and inspire a vision for a food system that prioritizes public health, environmental sustainability, and equitable access over unchecked corporate profit.
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Key Quotes
"Honestly as weird as it sounds it was a dive bar conversation in Des Moines this was 2018 this was there was a big governor's race in Iowa then and I didn't know at the time but Iowa doesn't have campaign contribution limits and this person was telling me that one one hog farmer in Iowa had given a governor over 300,000 for her race but it wasn't just that it was this detail that um that they had their own private jet and allegedly on the private jet were the words when pigs fly which I thought was incredible copy but also what a powerful symbol of what's happened to Iowa in my lifetime so this whole thing started really of just that question of how did this happen how did animals disappear in my lifetime in Iowa you used to drive and you would just see them everywhere now you don't you smell them but you don't see them and so this whole thing started with kind of that hog baron and then I realized the story of Iowa you've actually seen this across the food system you've read about Walmart Cargill the meatpackers and the sugar barons real families and firms who control what Americans eat."
Austin Frerick explains that his research into the concentration of power in the food system began with a personal observation in Iowa. This anecdote highlights how seemingly small details, like a private jet with a provocative slogan, can symbolize larger systemic issues. Frerick uses this as a jumping-off point to explore how families and corporations have come to control what Americans eat.
"No man that's a great question it really comes to symbolize the um Robert Bork people might know him as Nixon's Attorney General that Friday night massacre where Nixon wanted to fire that special prosecutor and most people in the DOJ weren't willing to do it but he was willing to do it and we found out later it's because he was promised a Supreme Court seat but he basically undermined that Teddy Roosevelt antitrust framework he came up with this phrase called the consumer welfare standard but it basically allows for massive consolidation in the food system where one company can buy another company if you can show that prices go down and to be frank you can find any economist to give you those numbers it's been very lucrative for a lot of economists to do it so that's allowed this this new intellectual framework this pro consolidation framework has just been rampant in the American economy for the last 40 years and I really think the food space is the most concentrated space in America."
Austin Frerick identifies Robert Bork's "consumer welfare standard" as a key shift that undermined the antitrust framework established by Teddy Roosevelt. Frerick argues that this standard, which permits consolidation if prices decrease, has enabled rampant corporate consolidation across the economy, particularly in the food sector. He suggests that this has created a lucrative environment for economists who support such mergers.
"It's kind of what I realized is the middlemen in any industry tend to be the most powerful but the least consumer facing it's like take Cargill to be honest with you when I when I put this book together I didn't plan to write about Cargill even though I grew up around Cargill like I'm from Cedar Rapids I played soccer next to a Cargill plant my church was next to a Cargill plant I was born next to a Cargill plant but I never really knew what they did but the fact is they're the largest private company in America they're bigger than the Koch Brothers but they don't put their name on any consumer products so most Americans don't know who they are on top of it I mean when I when I first wrote that chapter I kind of thought of Cargill as the closest modern day example to Standard Oil because it's all about that you know owning the middle but when I finished that chapter I really realized a better comparison of Cargill is really the 19th century British Empire because the sun never sets on Cargill's grain empire like Cargill still in Russia today because we don't know who they are and they're not facing that consumer backlash so they don't feel that need to pull out of Russia."
Austin Frerick explains that powerful middlemen companies, like Cargill, operate with significant influence but remain largely invisible to consumers. Frerick notes that Cargill, the largest private company in America, does not market its name to the public, contributing to its anonymity. He draws a parallel between Cargill's vast global reach and the 19th-century British Empire, highlighting its pervasive presence and lack of consumer accountability.
"The UN has even recognized women food producers noting that if they are empowered they can be important drivers of change and that's really what I saw in my reporting it was the women who were at the forefront of this movement yeah I think it's so interesting what you said about being on the margins in this instance is actually an advantage because you can start to nibble into the center from the margins."
Nancy Matsumoto emphasizes that the United Nations acknowledges the significant potential of women food producers as agents of change. Matsumoto's reporting revealed that women are leading the movement to rebuild the food system, often from the margins. She suggests that their position outside the traditional power structures can be an advantage, allowing them to influence the center.
"Shirley is really an icon of the African American food sovereignty movement and of the Civil Rights Movement and I show in my book how the two were actually really closely intertwined she came of age in the 50s and 60s in Southwest Georgia near a town called Albany that was once the slave trading center of the state and her father Hosea Miller owned a 62 acre farm she began working on it when she was very young and in 1965 a dispute arose with a white neighbor who claimed that one of Hosea's cows was actually his own and Hosea was walking away from the dispute he had his back turned to the neighbor a guy named Cal Hall who shot him in the back with his rifle and killed him Hall was never prosecuted a grand jury said there wasn't enough evidence though there were two black witnesses who saw this happen but this was really powerful for the course in the Jim Crow South and it galvanized Shirley who was 17 at the time to become an activist."
Nancy Matsumoto introduces Shirley Sherrod as a pivotal figure in both the African American food sovereignty and Civil Rights movements, highlighting their interconnectedness. Matsumoto recounts the tragic event of Sherrod's father's murder in 1965, a racially charged incident where the perpetrator was not prosecuted. This injustice profoundly impacted a 17-year-old Shirley, galvanizing her into activism.
"The commodity dairy system by contrast is involved towards increased monopolization by a handful of very large companies and this has led to decades of closure of small and mid sized dairy farms Vermont alone between 1950 and today has lost something like gone from something like 11,000 to about 500 farms and the commodity dairy system does exploit both workers sometimes underage workers and animals the focus of this industry is getting the most milk per cow and so today conventional dairy farms produce three times more milk than they did in 1960 but with about half the number
Resources
External Resources
Books
- "Barons: Money, Power, and the Corruption of America's Food Industry" by Austin Frerick - Mentioned as a source detailing the concentration of power and corruption within the food system, focusing on dynasties and corporations that shape what Americans eat.
- "Reaping What She Sows: How Women Are Rebuilding Our Broken Food System" by Nancy Matsumoto - Discussed as an examination of women leaders rebuilding the food system, focusing on building short, direct, and transparent supply chains.
Articles & Papers
- "Pigford v. Glickman" - Referenced as a landmark lawsuit that allowed for the reopening of New Communities, an organization founded by Shirley Sherrod and Charles Sherrod.
People
- Austin Frerick - Author of "Barons," former Treasury Department official, discussed for his research on agricultural and antitrust policy.
- Shirley Sherrod - Icon of the African American food sovereignty and civil rights movements, co-founder of New Communities, discussed for her work in securing farmland for landless Black people.
- Charles Sherrod - Co-founder of New Communities, discussed in relation to his wife Shirley Sherrod's activism.
- Hosea Miller - Shirley Sherrod's father, whose farm and death are discussed in relation to the historical context of racial injustice and land ownership.
- Cal Hall - The individual who shot and killed Hosea Miller, mentioned in the context of the lack of prosecution in the Jim Crow South.
- Robert Bork - Mentioned as a figure who undermined the Teddy Roosevelt antitrust framework with the "consumer welfare standard."
- Teddy Roosevelt - Referenced as a historical figure associated with antitrust laws and a framework to avoid concentrations of economic power.
- J.P. Morgan - Mentioned in the context of historical corporate power and the "second gilded age."
- Lewis Brandeis - Referenced as a Supreme Court judge whose framework influenced antitrust laws, emphasizing the avoidance of concentrated economic power.
- Nancy Matsumoto - Author of "Reaping What She Sows," discussed for her examination of women rebuilding the food system.
- Erica Quezada - Co-founder and operations director at Alma Backyard Farms, discussed for her work in urban agriculture and restorative justice.
- Richard Garcia - Co-founder of Alma Backyard Farms, discussed for his work in creating opportunities for children and establishing urban farms.
- Father Greg Boyle - Founder of Homeboy Industries, mentioned as a figure whose work in restorative justice influenced Richard Garcia.
- Father Long - Pastor at the church where Alma Backyard Farms is located, mentioned for providing land for the farm.
- Dennis - An individual who served 27 years in prison and now works at Alma Backyard Farms, discussed for his transformation through urban farming.
- Eric Schlosser - Mentioned as a mentor to Austin Frerick, author of "Fast Food Nation."
- Tom Vilsack - Former Secretary of Agriculture, discussed for his role in agricultural policy in Iowa.
- Sonia Strobel - Founder of a consumer-supported fishery, discussed for creating an alternative fish food system.
- Otto - Sonia Strobel's husband's father, a small fisherman whose experiences inspired Sonia's venture.
Organizations & Institutions
- Cargill - Mentioned as a large private company in the food industry, compared to Standard Oil and the British Empire, and discussed for its role as a middleman.
- Walmart - Discussed as a corporation shaping what Americans eat and its role in the food system.
- Driscoll's - Mentioned as a "berry baron" that contracts out berry production, using a model similar to exploitative sharecropping.
- Mars - Mentioned as a household name in the food industry, with invisible families behind it.
- Pro Football Focus (PFF) - Mentioned as a data source for player grading.
- New Communities - The first land trust founded by Shirley and Charles Sherrod, aimed at securing farmland for landless Black people.
- USDA (U.S. Department of Agriculture) - Mentioned in relation to its oversight of agricultural regulations and loan programs.
- Des Moines Register - Referenced as a newspaper that used to cover agricultural issues extensively.
- The New York Times - Discussed in relation to its focus on new trends rather than in-depth reporting on systemic issues.
- Iowa State University - Mentioned as an agricultural university where research on agricultural issues is reportedly stifled by corporate influence.
- Cisco - A restaurant food distributor discussed for its market share, acquisitions, and impact on the sameness of diner food.
- JAB Holding Company - Owned by the Reimann family, discussed for its ownership of various coffee and food brands and its historical ties to Nazism.
- Peet's Coffee - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- Stumptown - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- Counter Culture - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- Caribou - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- Keurig - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- Panera Bread - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- Krispy Kreme - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- Einstein Bagels - Owned by JAB Holding Company, mentioned in the context of coffee barons.
- IG Farben - A historical chemical company broken up after WWII due to its financing of the Nazi regime.
- Standard Oil - Used as a historical comparison for Cargill's business model.
- The Coca-Cola Company - Mentioned in comparison to Cargill's size.
- The Koch Brothers - Mentioned in comparison to Cargill's size.
- The Reimann Family - German billionaires who own JAB Holding Company, discussed for their company's brands and historical ties to Nazism and forced labor.
- The Wall Street Journal - Reported on the Reimann family still selling coffee in Russia.
- The British Tabloids - Originally reported on the Reimann family's history.
- The New Deal - Referenced as a historical period of federal programs and reforms.
- The Weimar Republic - Referenced as a historical period with parallels to the current U.S. political climate.
- The Producers - A Mel Brooks film mentioned in the context of making powerful figures into clowns to disempower them.
- The National Organic Standards Board - Mentioned in relation to a fight over labeling hydroponically grown produce as organic.
- The European Union - Mentioned as not allowing hydroponically grown produce to be labeled as organic.
- Canada - Mentioned as not allowing hydroponically grown produce to be labeled as organic.
- Red Tomato - A food hub based in Providence, Rhode Island, discussed for connecting small and mid-sized farmers to markets and its eco-certified program.
- Whole Foods - Mentioned as a grocery store where Full Belly Farm's products are sold.
- Organic Valley - A national cooperative offering protection and services to its farmer members, including veterinarians, agronomists, payroll, and processing centers.
- Course Farm Dairy - An Organic Valley member farm in southern Vermont that installed a solar system with Organic Valley's assistance.
- Alma Backyard Farms - An urban agricultural nonprofit in Compton and San Pedro, focused on restorative justice, food security, and community connection.
- Homeboy Industries - Founded by Father Greg Boyle, mentioned in relation to Richard Garcia's early work.
- Homegirl Cafe - Mentioned in relation to Richard Garcia's early work.
- Dolores Mission - Mentioned in relation to Richard Garcia's early work.
Websites & Online Resources
- KCRW.com/goodfood - Website where links to Austin Frerick's work will be available.
Other Resources
- Consumer Welfare Standard - An antitrust framework mentioned as allowing for consolidation if prices decrease.
- Antitrust Laws - Discussed in relation to historical frameworks and their current application, particularly regarding large mergers versus smaller acquisitions.
- Consumer-Supported Fishery (CSF) - A model similar to CSA (Consumer Supported Agriculture) created by Sonia Strobel for fish.
- Consumer Supported Agriculture (CSA) - Mentioned as a model for consumer-supported fisheries.
- Restorative Justice - A core principle of Alma Backyard Farms' work, focusing on rehabilitation and community reintegration.
- Urban Farming - The practice employed by Alma Backyard Farms to create food security and community connection.
- Regenerative Organic Certified - A label that certifies soil-grown produce using organic methods.
- Real Organic Label - A label for soil-grown produce using organic methods.
- Ethanol Mandate - Discussed as a government mandate that drives corn production and contributes to environmental issues in Iowa.
- Chicken Model of Production - An exploitative production model rooted in sharecropping, used by Driscoll's.
- Sharecropping - An exploitative production model historically used against Black farmers in the South.
- Gilded Age - Referenced as a historical period with parallels to current corporate power.
- Robber Barons - Historical figures associated with immense corporate power, used as a comparison to modern-day "barons."
- The New Deal - Referenced as a historical period of federal programs and reforms.
- The Weimar Republic - Referenced as a historical period with parallels to the current U.S. political climate.
- The Producers - A Mel Brooks film mentioned in the context of making powerful figures into clowns to disempower them.
- The Consumer Welfare Standard - An antitrust framework mentioned as allowing for consolidation if prices decrease.
- Antitrust Laws - Discussed in relation to historical frameworks and their current application, particularly regarding large mergers versus smaller acquisitions.
- Consumer-Supported Fishery (CSF) - A model similar to CSA (Consumer Supported Agriculture) created by Sonia Strobel for fish.
- Consumer Supported Agriculture (CSA) - Mentioned as a model for consumer-supported fisheries.
- Restorative Justice - A core principle of Alma Backyard Farms' work, focusing on rehabilitation and community reintegration.
- Urban Farming - The practice employed by Alma Backyard Farms to create food security and community connection.
- Regenerative Organic Certified - A label that certifies soil-grown produce using organic methods.
- Real Organic Label - A label for soil-grown produce using organic methods.
- Ethanol Mandate - Discussed as a government mandate that drives corn production and contributes to environmental issues in Iowa.
- Chicken Model of Production - An exploitative production model rooted in sharecropping, used by Driscoll's.
- Sharecropping - An exploitative production model historically used against Black farmers in the South.
- Gilded Age - Referenced as a historical period with parallels to current corporate power.
- Robber Barons - Historical figures associated with immense corporate power, used as a comparison to modern-day "barons."