Industrialization in the agri-food sector and globalization

Abstract

Major structural changes have been occurring in food production and distribution system from input procurement to the consumer tables. These changes in the food production and distribution system have been popularly referred to as the industrialization of agriculture. The other important change is globalization, which is mainly described as the liberalization of the agricultural sector and trade without any international barriers mainly after 1980s. Nowadays there is a considerable movement against industrialization and globalization. It is generally argued that industrialization and globalization of food and fibers systems imperil humanity and the natural world. Economic globalization under the current rules has widened the gap both between rich and poor countries and between the rich and the poor within most countries. Undesirable economic, social and environmental consequences of the modern agricultural system have been attributed to industrialization and globalization, omitting the economic system in which these major movements have been shaped. Why don't we try to question the worldwide economic system "free-market economy"? The "invisible hand" of the free-market economy has become so visible. Then, using the visible hand of the planned economy to some extent might give better outcomes than the hidden hand of market oriented economies which is mainly supported and controlled by leading countries and trans-national companies.