Transitional Corporations and My Food

Subject Area

This activity is intended for the Grade 12 Environmental Science curriculum as a conclusion to "Plants, People and Environmental Modification," but it could easily be adapted for use in any number of subjects which deal with world issues.

Learning Outcomes

Teaching, learning and evaluation will focus on the student's ability to:

Experience the power of large corporations;
Work cooperatively with other students in a situation designed to highlight conflicts;
Identify the problems associated with providing Canadians with "cheap" food.

Classroom Development

This exercise is designed in four parts:

Part 1: "Trust Me..." Groups of Students play the roles of three individuals involved in the food production system.

Part 2: Class exercise called "Where does soup come from?"

Part 3: Teacher lecture - students take notes.

Part 4: Wrap-up and call to action activity.

Trust Me

Materials

Student Handouts: Profiles of the Team and Scenarios 1-5
As many cans of soup as possible

Teaching Strategy

Divide the class into groups of 3. Instruct the team members to sit facing one another.
Instruct students to write the following heading in their notebooks: "Trust Me" - The Future of Food Production? under which they are to create three columns with the following headings: Anna Angus Lochlan Savage Rachel Grier
Have students read Profiles of the Team, and decide which student will play each role.
Ask students to read the first scenario. Remind the students that they are first to record their own position, then share their ideas with the other members of their group. Before moving on to Scenario two, each class member should have the opportunity to make notes based on the opinions of the other members of the group.
Repeat this process for all five scenarios.

Where Does Soup Come From?

Obtain as many brands of soup as is possible. It might be possible to borrow them from a local grocery story, or purchase them for the activity and return them later.
Evenly distribute the cans throughout the classroom before students enter. Next, write all the different brand names on the board.
Instruct the students to read the soup label on their desk, and then to put a mark on the blackboard under the appropriate brand name. The mark is to be a "c" if the soup is a Canadian product, "x" if it is not. Instruct the class to return the cans to you while making these recordings.
Circle the brand names which are produced by the same company.

(Note: A (3) or a (4) after the details of ownership indicates the Canadian content. A company which is greater than 50% Canadian owned receives a 4. All foreign owned companies are ranked from 0 - 3 based on such factors as jobs, autonomy and responsiveness to Canadian need.) See The Ethical Shopper's Guide for more information. In order to reflect changes in ownership and market share, the percentage foreign ownership, market share and ranking have been left blank. Consult current issues of The Ethical Shopper's Guide or other resource for accurate data.

Campbell produces Campbell, Gattuso, Habitant, Healthy Request, Hearty Noodles. Campbells is ___% American owned (___), and controls ___% of the canned soup market.

Nabisco-Aylmer is ____% American owned (__), and controls ___% of the cookie market in Canada. Also, Nabisco's parent company owns RJ Reynolds Tobacco Co., one of the largest tobacco companies in the U.S.

Canada Starch Co Inc. produces Bovril, Knorr and du Chief. Founded in eastern Ontario, this company is now ___% American owned (__). It has a large part of the peanut butter market, producing both Squirrel and Skippy brands.

British Columbia Packers Limited produces Cloverleaf, and is ____% Canadian owned (___). This company is also the world's leading canner of salmon, and is a large manufacturer of baby food, ketchup and other canned and bottled foods. Also, this company owns ____% of Weight Watchers Canada.

Nestlé produces Libby's and Maggi, and is ____% Swiss-owned (__). Nestlé is one of the companies exhibiting the greatest degree of environmentally responsibility.

Unilever produces Lipton and Oxo, and is ___% British owned (__). Lipton controls about ___% of the dried soup market. Unilever also owns A&W, Calvin Klein Cosmetics and Elizabeth Arden. Unilever also has an exceptionally responsible environmental track record (though this may not extend to the practice of animal testing in its cosmetics subsidiaries).

Culinar Inc. produces Loney's and Unico, and is ___% Canadian owned (__). Its Vachon baked goods are familiar to many.

Alberto-Culver Canada Inc. produces Milani, and is ____% American owned (___).

Primo produces Primo and Progresso, and is ____% American owned (___).

Borden Catelli Consumer Products produces Snow's, and is ____% American owned (__).

Teacher Lecture

Many of the students in your class will be heading on the university or college, and they need to become familiar with note-taking strategies. Instruct your students that you will deliver a mini-lecture and that they will be expected to take notes and use the information obtained together with what they have learned about the food industry thus far to write and submit a summary. Use the information provided in Background Information, or any additional resources, to deliver your mini-lecture.

If you wish to provide extra support and to build their note taking skills, follow these steps:

Direct students to take notes however they feel comfortable without regard for what their neighbours are doing;
After the lecture, direct them to review their notes to see what they have;
Then move them into groups so that they can share this information and discuss the techniques of taking notes;
As a class, list and discuss all the various strategies used by students;
Repeat your lecture, verbally highlighting what you think are the important points.

These steps will help students to see the lecture experience as an alternative learning mode which can be approached and experimented with without fear.

Call To Action:

No farmers,

No Food,

No Future...

Write the above statement on the board and instruct the students that they are to write a 500 word essay examining how they want their food produced; either by the Transitional Corporations or by independent farmers. They are to support their thesis/opinion with three sub-topics. Each sub-topic should be supported by three examples which support their thesis. Their conclusion should detail at least three ways in which they could alter their habits to carry through with the implementation of what their thesis statement implies for the consumer.

Background Information

The first scenarios given to the students are modeled on the actions of an American-based transnational corporation which went about restructuring the Canadian livestock industry in the late 1980s and early 90s. The facts about their income compared to the average Canadian farmer in 1991 are true.

The outcome of the rise of this industry has yet to be determined, but for now there is a small town in Canada which is "prospering" as a "meat-packing town." The exercise the students are carrying out represents only one possible outcome, but it is based on the experiences of the food industry with transnational corporations in the United States (In one North Carolina meat packing plant, workers are paid an annual salary of $8600).

There has been a huge change in the food industry in the 1980s and 1990s. In fact, it has been predicted that by the end of the 1990s, 20 mega-companies will control the world's food supply.

This is taking place for a number of reasons:

The economic boom in the 80s put a lot of money into the hands of the large corporations;
The markets in eastern Europe opened up;
The Free Trade Agreement between the US and Canada, and later the North American Free Trade Agreement between the US, Canada and Mexico altered the markets in these countries.
Large multinational takeovers are occurring, where companies buy out their competitors but continue to market the brand names of both companies (For instance, Campbell Soup, produces the soups with the familiar red and white label, but since they bought Habitant soups from Catelli in 1989 they also profit from the sales of Habitant, Gattuso, Hearty Noodles and Healthy Request brands.).
The debt crisis in the third world is forcing many countries to allow the trans-nationals to expand (It is interesting to note that this debt came about largely because these poorer countries were encouraged to industrialize in the 50s and 60s and import their food. They are now attempting to pay back debts, and still have no control over their own food production.).

Trans National Corporations (TNCs) are responsible in large part for the global environmental crisis and for many social and economic problems resulting from "development." TNCs are the main entities in a development process which involves a concentration of economic power and production, and which leads to social and political inequity and loss of cultural diversity.

The following are some facts about the role TNCs play in our global society:

TNCs in oil production, road transport, CFC production, electricity generation, metals production and agriculture account for roughly 50% of greenhouse gas emissions and virtually all ozone destroying chemicals.
TNCs dominate the trade in natural resources and commodities, resulting in depletion or degradation of forests, soils, water and marine resources and biodiversity, through mining, drilling, logging and industrial agriculture.
TNCs dominate the production of most of the world's toxic chemicals, resulting in air, water and soil pollution, occupational hazards and unsafe products.
TNCs are the main entities involved in the transfer of environmentally unsound production systems and hazardous materials to the South. Examples include unsafe pesticides and drugs banned in the country of origin, the relocation of polluting industries, lover safety standards such as those which led to the Bhopal disaster in India, the dumping of radioactive waste in the South Pacific, and the export of wastes to Africa, Latin America and Asia.
TNCs exploit weaker health, safety and environmental standards in non-Western countries, as well as different levels of political freedom in these countries.

Presently, there is no force, governmental, intergovernmental, or nongovernmental which is capable of monitoring or regulation the activities of these large corporations. In fact, recent events show a trend to give more power to the TNCs.

Action: International Level

The following steps can be taken to gain some measure of control over the impact of TNCs in a specific state or society:

Establish a countervailing power within countries, involving Non-Government Agencies, consumer associations, trade unions, citizen's groups, district associations and other grassroots groups;
Coordinate campaigns on specific TNC activities and products;
Produce a booklet containing 20 case studies to be released to the public;
Hold regional seminars between people specifically affected by the activities of the TNCs such as consumers, workers, neighbours of plants;
Produce a booklet listing the products made by the 5 biggest food TNCs.

Action: Personal Level

The following steps can be taken to gain some measure of control over the impact of TNCs in a specific local community:

Visit farms in your area and talk with the independent farmers who produce your food;
Buy produce directly from these people, either at the farm gate or at farmer's markets;
Shop at independently owned grocery stores, meat markets and bakeries;
Become a member of a food cooperative;
Buy only produce which comes from Canada;
Write letters to or place phone calls with the Members of Parliament in your area commenting on the bills which affect farmers;
Educate Yourself: become aware of who produces which food.

Resources

Helson, Joan et al. The Ethical Shopper's Guide to Canadian Supermarket Products. Broadview press, 1992, ISBN 1-55111-001-6. The information provided in this book could be used to greatly extend the analysis of the Canadian food system. It rates products based on the company's position on: Women's Issues, Charity/Community involvement, Progressive Staff Policies, Labour relations, Environmental management and performance, Management/consumer relations and Canadian content.

The Supermarket Tour: a handbook for education and action.

Ontario Public Interest Research Group
455 Spadina Ave. Room 201
Toronto, Ont.
M5B 1A2
(416) 598-1576

Cross-disciplinary Links

This unit may be also used in Food and Nutrition and Management Studies at the Grade 11 level, in Economics in Grade 12 and with some modification, in OAC Administration Studies, Law, Environment and Economy and Science in Society.

Glossary

feedlot: yards where cattle eat the feed which is brought to them (as opposed to the cattle feeding on pasture).

per annum: calculations based on a yearly cycle.

profit margin: amount of money left over after expenses are covered.

salesbarn: livestock sales site.

transnational corporation: also multinational corporation. A corporate organization that operates in many countries.

vertical integration: to control the various stages of producing a product, from the extraction of raw materials to the production, delivery and marketing of the finished product.

Student Activities

Transnational Corporations and My Food

Profiles of the Team

Anna Angus

I am the head of the Canadian branch of the transnational corporation, AUTOLUNG. Our company had an income of 49 billion dollars in the past year, which is more than the economic output of the country of Thailand. Our company is involved in all aspects of food production. We are a vertically integrated company with a small oil refinery in Texas, a factory producing farm machinery in Mexico, fertilizer plants in Saskatchewan, beef feedlots in Argentina, and the list goes on. We pride ourselves in being able to produce food as cheaply as possible for the consumer, so we therefore have investments in 60 countries throughout the world.

Lochlan Savage

I am a beef producer in Happytown, Ontario. I am farming on some of the best soil in this province-land which has been in the Savage family for 150 years. I love farming and take pride in producing quality beef at a reasonable price for the consumer. However, I have found it necessary to take jobs off the farm to support my family, as there isn't enough money to be made in raising beef. It saddens me to say that in the same year that Autolung made such an enormous profit, Canadian farmers have had the worst year in terms of real farm income since The Depression. Last year I was elected mayor of Happytown.

Rachel Grier

I am a lawyer living and practicing in Happytown. I grew up in this town and was happy to return to it after I finished my degree and practiced law for the first years of my career in Toronto. I am married to a large animal veterinarian. All of his practice involves taking care of farm animals and acting as the provincial meat inspector at the small local meat packing plant. Most of my clients in the law practice are involved either directly or indirectly in the food production industry. Although both the Angus' and the Savages are families who have to go to the grocery store to purchase much of their food, I will be the consumer representative in this activity.

Scenario #1

Lochlan Savage sells his cattle through the local salesbarn and has noticed that over the last few weeks the price he has been receiving is considerably higher than it has been for years. He doesn't know why, except that there has been a drought in Australia and he expects that that country has been marketing fewer cattle.

Anna Angus, however, knows exactly what is happening. Autolung wishes to take over the beef packing industry in Canada. Ms. Angus has therefore ordered her beef buyers to bid up the price of beef in the short term. This will force all packing plants to pay more for the beef they buy from farmers. These wholesalers will then be forced to sell it to the consumer at a higher price. Autolung being such a sizable company can suffer a loss for a short while, so will sell its beef at a lower price than its competitors.

How do the three of you who are Angus, Savage and Grier respond to what is happening? State how you react to the situation (are you pleased, angry, frustrated?), and why you are experiencing this emotion.

After you have recorded your own reactions, share your feelings with the other members of your team and take brief notes on what they say.

Scenario #2

Autolung has managed to cut the profit margin so much that all meat packing plants in Canada (including the one Grier's husband works at occasionally) have been forced to close. They now wish to locate the sole Canadian superplant in Happytown and have approached the town council about their plans. They propose that this company alone will employ 600 people in this community of 5000. More jobs would be created in the spin-off industries which support the company.

Decide and record once again how you feel as Autolung seeks approval from town council to build its superplant. Explain why you feel this way. Then share your opinions with your teammates.

Scenario #3

Happytown council members approved the establishment of Autolung's Beef Packing superplant in their community. With the farming economy being in such poor shape, they felt that this was their golden opportunity.

There has been a boom in the economy. Houses are being built for the influx of workers, new gas stations and a new mall have opened up. The council has had to reorganize its plans to accommodate the increase in demand for services (i.e. water, sewage, schools, road and sidewalk maintenance).

Many of the farmers in the area, like Lochlan Savage, are now growing corn, barley and soybeans specifically for Autolung.

The company is now in full swing and has hired people at the minimum hourly wage. This is a considerably lower wage than the community had expected would be paid.

Decide and record how you are feeling about the changes which have taken place so far. On a personal level what is happening to you at this time? Again record the statements of your teammates.

Scenario #4

There are now thousands of cattle being held on the outskirts of Happytown. This has naturally created quite a problem with noise at all hours of the day, but this problem pales to that of the excess manure which has built up and overflowed into the river which supplies Happytown with its water. The Ministry of the Environment is laying charges against Autolung and many of the residents of the town have become sick.

The farmers of the area have managed to make some money from growing crops for Autolung, but they are concerned about what is happening to their soil which has grown the same crops year after year. They have had to use greater quantities of fertilizer and pesticides each year in order to meet their contracts with Autolung. Because they aren't making enough money to get ahead, they haven't been able to implement soil conservation measures and they know that they are losing valuable soil each year.

There are also labour problems within the plant. The employees are complaining of poor working conditions and low wages, and threaten to go on strike.

Considering all of these situations, state how you feel at the present moment and record your experiences.

Scenario #5

Autolung has decided to pull their Canadian operations in the beef industry and relocate to Mexico. They claim that the environmental standards in Canada are impossible to meet, that the labour force is pleased to work for less in Mexico, and their input costs are far cheaper there.

Decide and record how you, in the various positions you hold in your community will react to this news.

Summary

Your summary of this activity will be handed in and marked by the teacher.

Evaluation Criteria

Evaluation will be based on your ability to integrate the facts of the scenario, the background information you have compiled, and your personal responses to the situation.

Explain how each of you in your group of three responded to each scenario. Do some members of your group think that they have won or lost? (4 marks for each person)
Did the consumer win? Explain you answer. (2 marks)
How are consumers likely to fare from the relocation of the beef packing industry in 5-10 years time? (2 marks)
Go back over the scenarios and decide if there was a point in this process where the consumer could have made a difference in the eventual outcome of events. Explain. (7 marks)

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