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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