Thursday, November 13, 2014

Mark Bittman, Farmers and Markets

The NYTimes is running a Food Conference, which means Mark Bittman is again writing on food.

He gets one thing half right:
The difference between you and the hungry is not production levels; it’s money. There are no hungry people with money; there isn’t a shortage of food, nor is there a distribution problem. There is an I-don’t-have-the-land-and-resources-to-produce-my-own-food, nor-can-I-afford-to-buy-food problem.
I agree it's a poverty problem, but he goes on to say that poverty often comes from people displacing traditional farmers. The rest is a mish-mash, mostly attacking "industrial model of food production".

IMHO China is simply the latest and most dramatic example of the truth.  Allow private possession of land and provide incentives to increase production  by having a market for agricultural products and to increase productivity by using modern "industrial" methods.  That correlates with agricultural labor moving to cities for higher wages/better living conditions, allowing greater returns to the farmers who remain.  In other words, the city workers get money and the non-traditional farmers get money; money means markets.  The traditional agriculture model has failed to provide people what they want, as shown by what they'll pay for and what they'll move for.

Now having said all that by definition the market doesn't handle bad externalities, it doesn't enforce standards (witness Chinese baby formula) and the structure of the market with multiple producers with no pricing power and few buyers with much power leads to boom and bust. So there's many problems with industrial agriculture, but producing enough food to feed the world is not one of them.

No comments: