The Daily Maverick, 17 March 2011
Jay Naidoo concludes his column on food security by emphasising that this issue “is too complicated and too central to be addressed by governments alone”. Business, in particular, has a vital role to play. For a start, this is because most food is produced, processed, packaged and distributed by private sector companies. In South Africa, there is an especially dominant role for large companies in food value chains, with the majority of food sold to consumers by large retailers. So while the state can try to influence these value chains through regulation, incentives and the provision of infrastructure, much will depend on companies’ strategies and how they intersect with the growing challenge faced by both rural and urban poor people in accessing safe, nutritious food.
Indeed food security is already very much on the agenda of most large food companies, for good reason: They worry about their reputation when accused of profiteering at the expense of the poor, they worry about ensuring reliable supply to maintain efficient production or fill shelves and they worry about the conflict and revolutionary potential when people go hungry.
So there is already a range of corporate strategies and activities with direct bearing on food security, some of which are motivated by other competitive drivers. For a start, food inflation has motivated retailers to cut margins and control costs to maintain market share. Some have publicly sold basic food items at cost to attract customers in difficult times.
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