The Influence of Transnational Corporations & Food Consumption
Transnational Corporations (TNCs)
- Transnational Corporations (TNCs) are companies that operate globally
- As a result of globalisation, TNCs have developed
- TNCs are companies which operate in two or more countries
- As communications and transport have improved so have the number of TNCs
- TNCs are powerful and can majorly influence our food consumption habits
Agribusinesses
- Agribusiness is the different stages of commercial agriculture, controlled by a TNC
- They operate through:
- Expansion (purchasing smaller holdings)
- Deforestation and land clearing to increase the size of the land cultivated
- Monoculture (in large amounts)
- Heavy pesticide and fertiliser use
- Using technologies and high-yielding seed varieties
- Agribusinesses are vertically integrated
- Examples of Agribusinesses include:
- Cargill
- Syngenta
- Alpha Foods
- Monsanto
- DuPont
- Agribusinesses lower costs for consumers as large-scale production is cheaper
- They increase food security globally through exports
- This improves food access for areas with food shortages
- TNCs control where food is sold
- TNCs bring in more ‘Westernised’ products into nonwestern developing countries
- This can impact nutrition patterns (and resulting nutrition-related diseases)
- Through monoculture, TNCs control the food market
- Farmers grow whatever TNCs require, meaning farmers grow fewer cultural or local foods
- Consumers therefore have less choice
- TNCs focus on food enjoyment, rather than providing foods that are nutritious
- This encourages people to buy and consume more
The influence of the media
- TNCs often use the media to shape people’s consumption patterns
- TNCs market or advertise their products, to encourage consumption
- As LICs develop, they become more technologically connected
- TNCs can then advertise via the media
- This could be both good and bad:
- Marketing of highly processed foods can impact obesity rates and other food-related diseases
- May impact younger people, as adverts are more appealing to the younger generation
- Some adverts have pester power, so parents purchase unhealthy foods for their children
- Can completely change attitudes toward foods e.g. the avocado
- Avocados were previously an unknown fruit - the alligator pear
- The negativity surrounding high-fat diets during the 1980s impacted the sale of avocado
- An avocado mascot appeared - Mr Ripe Guy!
- The Superbowl marketed the humble avocado, with a guacamole recipe competition with NFL players
- Through major advertising, avocados are now a hugely successful commodity
- Foods are advertised as convenient and quick, which panders to the majority of the population
- Using celebrities and well-known/trusted individuals influences more people
- The growth of TikTok and other social media platforms allows TNCs to gain greater influence over people’s diets