The main problem with adopting this new hybrid crop is the cost, because most cocoa farms are typically family run and small scale they are not able to afford it (Boaher, Kwasi, Snijiders & Tolmer, 1999, p. 169). While small farms can not afford this, big plantations are able to adopt this farming method and increase annual yield which increases the plantations wealth. This allows big plantations and companies to control the market and leaves little room for small scale farms to increase net profit, trapping them into a vicious cycle of
Several issues must be addressed in order for cocoa farmers to receive more pay for their crop, which in turn will reduce slavery. The issue of slavery, of course, has not been without dispute. This opposition has primarily, if not entirely, come from the major companies that profit off the cocoa purchased from Cote d’Ivoire. Such opinions included are that the price of the crop cannot be increased as it would be “price fixing.” Another argument is that there is no real slavery occurring, but that it is merely the working standards of the country. Finally, one could argue that paying more for the crops would raise the prices for consumers, and at the same time does little or nothing in the way of improving working conditions.
Many companies have turned to sustainable palm oil, palm oil that is produced on plantations that reuse the land for their agricultural purposes, thus supplying more palm oil without the destruction of natural forests. Some choose to boycott palm oil entirely, but this alternative will not significantly change the demand for palm oil. Vegetable oil is used abundantly and oil palm trees are the quickest producing oil crops, concluding them necessary to satisfy the demand for edible oils. Not only is palm oil versatile for its uses and quick to produce, but it is a major component to the economy in Indonesia and Malaysia. Many people living in these countries struggle with poverty, and agriculture of sustainable palm oil is how a great deal of people support themselves and their families.
Brazil is known for having a very large biodiversity and having a huge portion of the Amazonian forest in its land. Yet, because of globalization, this country suffers a great deal environmentally wise and socially also. Both adults and children have to work in order to be able to survive. Many of these workers are exploited and changing this reality is quit hard. It all comes down to profits at the end: exploiting workers is much cheaper than paying them properly.
On one side of the debate you have the corporations that argue they are protecting their investment of research and development and on the other side you have the farmers wanting to be self-sustaining. The debate is important and relevant as the technology has wide spread implications to agriculture, ecology and food production worldwide in both industrialized and third world countries. I will describe the key events in this debate and argue against the use of V-GURTs based on the grounds of corporate ethical, ecological and social responsibility. Background According to the action group Erosion, Technology and Concentration (ETC) seed sales in 2007 by the world’s top 10 seed companies totaled nearly $15 billion. 82% of the global commercial seed market was proprietary meaning intellectual property (IP) rights governed the use of those seeds (ETC Group, 2008).
The Mars Inc has a plan to invest in cocoa planting’s research and development. The company wants to help the cocoa farmers increase their yields and efficiency. Consequently, the could reduce and control the price of cacao beans. Growing health consciousness More and more Americans have realized that consuming to much sugar and fat is harmful to their health. This concern would reduce the sales of traditional chocolate product.
Because of the immense decrease in farmer’s income due to the low cocoa prices at the time, many adult laborers left the industry to seek better payment (International Labor Rights Forum, 2014). Pressure to boost “productivity resulted in pressure to recruit more workers including children who may or may not be paid fairly” (Dunn, 2014). It its vital to increase farmers income by educating them to reach a higher productivity, which will result in a better quality in cocoa production. Cocoa producers have little to no bargaining power against the large multinational companies such as Nestle, Cargill and ADM, who control the supply chain and eventually conclude the livelihood of the farmers and their families. International Labor Rights Forum is committed to fighting “forced child labor in the cocoa industry through public education, corporate campaigns and engagement with partners in West Africa to uncover issues and find solutions” (International Labor Rights Forum, 2014).
Unless Cadburys chocolate bar has not achieved this position through heavy discounting, it should be generating high profits. For Cadbury to remain a star in a competitive environment its chocolate bean will continue to need heavy marketing expenditure. Cash cow Cash cows have a high market share in a slow growing, but mature market. Cadbury could fall into this because there competitors do have higher cost slightly. But Cadbury benefits from high economic of scale.
To maximize profit and reduce risk, Mattel outsource production to factories in developing countries. Nestlé is well known for producing chocolate but is in fact one of the world’s largest multinational food companies producing everything from frozen meals to infant formula. Nestle executives describe the company as the “world’s leading nutrition, health, and wellness company.” Nestlé has been criticized for pushing bottled water sales in developing nations, which is not only costly for communities, but deters governments from improving water sanitation efforts locally. Similarly Nestlé has been accused of marketing infant formula to new mothers in Turkey claiming t... ... middle of paper ... ...rt a product of insufficient pre-job safety training. Finally environmental pollution that is one factory disposes of toxic waste and wastewater improperly and uses prohibited caustic chemicals, the use of which it hides from official during inspections.
Many different factors contribute to the exploitation of developing countries and has caused many issues for them economically. In spite of the fact that free trade increases opportunities for trade internationally, it also increases the risk of failing for small companies in undeveloped countries that cannot compete on an international level. I cannot definitively say that globalization itself is completely good or completely bad, however I do believe it has caused great losses for the poor and middle class.