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industry can, in part, produce critical inputs to agriculture like fertilizers and
insecticides. Thus, in a region with both a petrochemical industry and agriculture
can have more efficient food production. Efficiencies through amalgamation
mean that larger economies with industries that are supportive of each other and
closely linked geographically or economically realize greater efficiencies.
Large economies with large domestic demand often experience both kinds of
economies of scale. This is sometimes referred to as “large country advantage.”
However, smaller countries that closely connect their economies in free trade
zones like the European Union can also experience such advantages. For
economies of scale, production tends to become concentrated in that location at
the expense of other locations.
7. Government Policies can dramatically influence the production and trade in
many ways. As noted already, national governments often seek to ensure FEW
security for its citizens. Domestically, policies can stimulate production to shape
consumption. Internationally, policies usually involve diplomacy and trade
arrangements, or sometimes the ownership of resources in other countries, to
guarantee supplies. While nations can and have resorted to a military conflict to
address food, energy, and water crises, trade is preferable.
While these seven factors are important within countries, there is a profound difference between domestic trade and international trade. Domestic trade is subject to
largely uniform policies, although significant regional policy differences do sometimes occur. Further, the movement of people, natural resources, and capital within
countries occur a lot more easily and rapidly, that across national borders.
While the past century has seen a significant convergence in the trade policies of
different countries, facilitated by many multilateral treaties and organizations,
profound differences domestic policies and other attributes of different sovereign
countries, results in significant challenges to the free movement food, energy, and
water cross national boundaries.
7.3 International Food Trade
The importance of food trade to food security is recognized in Sustainable
Development Goal 2.B (see Sect. 3.7.1), which aims to “correct and prevent trade
restrictions and distortions in world agricultural markets” through the World Trade
Organization (WTO) (see Sect. 6.2.3). In addition, the Food and Agricultural
Organization of the United Nations (FAO) supports developing nations in achieving
trade agreements that improve their food security.
In the 50 years ending in 2017, the value of international trade in food in current
dollars rose 40-fold (Fig. 7.1). This dramatic rise is the result of growth in agricultural
production and the global population, as well as shifts in diets throughout the world
away from locally grown food stuffs to diets that reflect the global diversity of
food crops.
P. Saundry and B. L. Ruddell
industry can, in part, produce critical inputs to agriculture like fertilizers and
insecticides. Thus, in a region with both a petrochemical industry and agriculture
can have more efficient food production. Efficiencies through amalgamation
mean that larger economies with industries that are supportive of each other and
closely linked geographically or economically realize greater efficiencies.
Large economies with large domestic demand often experience both kinds of
economies of scale. This is sometimes referred to as “large country advantage.”
However, smaller countries that closely connect their economies in free trade
zones like the European Union can also experience such advantages. For
economies of scale, production tends to become concentrated in that location at
the expense of other locations.
7. Government Policies can dramatically influence the production and trade in
many ways. As noted already, national governments often seek to ensure FEW
security for its citizens. Domestically, policies can stimulate production to shape
consumption. Internationally, policies usually involve diplomacy and trade
arrangements, or sometimes the ownership of resources in other countries, to
guarantee supplies. While nations can and have resorted to a military conflict to
address food, energy, and water crises, trade is preferable.
While these seven factors are important within countries, there is a profound difference between domestic trade and international trade. Domestic trade is subject to
largely uniform policies, although significant regional policy differences do sometimes occur. Further, the movement of people, natural resources, and capital within
countries occur a lot more easily and rapidly, that across national borders.
While the past century has seen a significant convergence in the trade policies of
different countries, facilitated by many multilateral treaties and organizations,
profound differences domestic policies and other attributes of different sovereign
countries, results in significant challenges to the free movement food, energy, and
water cross national boundaries.
7.3 International Food Trade
The importance of food trade to food security is recognized in Sustainable
Development Goal 2.B (see Sect. 3.7.1), which aims to “correct and prevent trade
restrictions and distortions in world agricultural markets” through the World Trade
Organization (WTO) (see Sect. 6.2.3). In addition, the Food and Agricultural
Organization of the United Nations (FAO) supports developing nations in achieving
trade agreements that improve their food security.
In the 50 years ending in 2017, the value of international trade in food in current
dollars rose 40-fold (Fig. 7.1). This dramatic rise is the result of growth in agricultural
production and the global population, as well as shifts in diets throughout the world
away from locally grown food stuffs to diets that reflect the global diversity of
food crops.
P. Saundry and B. L. Ruddell