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A corporate cartel fertilises food inflation

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Last year’s financial results from the world’s largest fertiliser companies are now in — and it’s a shocker. Given the sky high fertiliser prices of 2022, it was anticipatedthat their revenues would break records, but no one could have predicted this scale of profiteering. As the world grappled with a severe food crisis and farmers saw costs rise, the world’s largest fertiliser firms ramped up their margins and more than tripled their profits from two years ago.

Graph 1

Graph 1 shows the total profits of the big nine fertiliser companies over the past five years. They exponentially grew from an average of around US$14 billion before the Covid-19 pandemic to US$28 billion in 2021 and then to an astounding US$49 billion last year. International agencies like the World Bank blamed the spike in fertiliser prices on the Russian war in Ukraine, resulting in high natural gas prices (used to produce nitrogen fertiliser) from shortages and trade disruptions. But as can be seen in Graph 2, a major part of the story is the monopoly power of the fertiliser companies. These companies increased prices far beyond the increases in production costs and boosted their profit margins to a massive 36% in 2022.
Graph 2
There are signs that fertiliser prices are coming down from their stratospheric heights earlier this year, but the effects of the price spike are still being felt. The high prices and lack of supply in some countries caused farmers to cut fertiliser use, thereby reducing production levels and contributing to an alarming rise in global food insecurity. The high prices also pushed many farmers deeper into debt. Farmers from Cameroon to the U.S. say they are still spending three times as much on fertilisers as they were a few years ago. And in countries where fertilisers are heavily subsidised, the price spike has saddled governments with huge debts. In India alone, the central government’s expenditure on fertiliser subsidies last year surged from US$9.8 billion to US$17.1 billion. People are paying the price for the fertiliser industry’s price gouging.
The costs are also rising for the planet. Chemical fertilisers are a major source of environmental pollution and greenhouse gas emissions, with nitrogen fertilisers alone accounting for one out of every 40 tonnes of annual emissions. New reports from the UN’s Food and Agriculture Organisation and Earth4All, a global collective of leading scientists and economists, make it clear that steep and immediate reductions in global fertiliser use are required to avert catastrophic climate change. Both recommend a near phase-out of nitrogen fertiliser consumption by 2050 (see Graph 3). The idea is not to recklessly crash production levels, but a planned transition toward more sustainable, agroecological farming systems that require less or no fertiliser.
Graph 3
It is increasingly clear that today’s food inflation is a product of both corporate greed and ecological breakdown. Obscene levels of profit-taking by corporations are happening across the food system, from fertilisers to processing to retail, and this is pushing up prices. But the way these corporations organise our food production and distribution is also driving climate change and, undermining the capacity for the global food system to deliver affordable and accessible food, now and over the long term.
Bold new approaches are urgently needed to reign in corporate power in the food system and turn the food crisis around. When it comes to fertilisers, policy actions like windfall taxes and price controls can help. But to deal with both profiteering and environmental catastrophe we need to transition food production to rely far less on chemical fertilisers. The fertiliser industry will be pushing for the opposite when it gathers for its annual meeting in Prague this week, yet around the world there are farmers and rural movements already leading a transition away from chemical fertilisers, with plenty of successful examples to learn from. What’s holding us back is the structural political change needed at all levels to address the excess profiteering from the fertiliser industry, and chart a new path toward more resilient food systems.
Source: grain.org

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No Heritage Without its People: Why Ngorongoro Cannot be a World Heritage Site and an Eviction Zone

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The Tanzanian government, under the guise of “conservation,” restricts Maasai livelihoods and denies access to essential services forcing Indigenous residents away from their ancestral lands and turning their heritage into a playground for safari tourists.

As the 48th Session of the World Heritage Committee begins July 19, UNESCO continues to legitimize the continued forced displacement of the Maasai from Ngorongoro. If UNESCO cannot ensure that the World Heritage designation protects the rights of its Indigenous custodians, then the Committee must remove the Ngorongoro Conservation Area from the World Heritage List.

Increased international pressure is imperative to hold UNESCO accountable and protect the lives and rights of the Maasai!

Read our Open Letter to the World Heritage Committee.

Source: oaklandinstitute.org

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Rush: Global Scramble for Minerals Wages War on People and Planet

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As governments and corporations scramble to secure critical minerals, a new Oakland Institute report exposes the forces fueling today’s unprecedented mining boom. RUSH: Global Scramble for Minerals Wages War on People and Planet dismantles the dominant narrative that massive amounts of minerals are needed for the energy transition, revealing instead a potent convergence of political, military, and corporate interests racing to control the resources that underpin modern warfare and artificial intelligence.

“Securing access to critical minerals is reshaping international relations and foreign aid as competition between the US and China becomes a new geopolitical battleground,” said Anuradha Mittal, Executive Director of the Oakland Institute. “The costs are being borne by communities around the world as this global race drives wars and violence, results in land grabs, forced displacement, devastating pollution, and the irreversible destruction of lands and livelihoods,” Mittal continued.

With the Pentagon shifting towards an “AI-first” warfighting stance, the US military-industrial complex is rapidly integrating tech and AI firms with a mutual interest in locking down critical mineral supplies. The report exposes key players positioned to profit from a resource boom already drawing trillions in investment. These include ventures tied to the Trump family, billionaire-backed outfits such as KoBold Metals, an AI-driven mining firm supported by Bill Gates, and defense-tech companies like Palantir and Anduril, among others.

To justify a massive scale up of mineral extraction, governments, corporations, and international financial institutions like the World Bank, frame critical minerals as indispensable to the green transition and as a pathway to prosperity for the Global South. However, RUSH documents that more than 70 percent of critical mineral demand today comes from industries unrelated to the energy transition, including the automotive, aerospace, military, communications, and technology sectors. Rapid growth in artificial intelligence, data centers, surveillance technologies, and military spending is expected to increase this demand massively.

“Renewable energy deployment, such as wind and solar, requires only a fraction of the minerals that corporations plan to extract in the coming decades,” said Andy Currier, Oakland Institute Policy Analyst and report co-author. “But growing military demand and stockpiling of materials like copper, lithium, nickel, and cobalt will undermine the energy transition, diverting critical resources away from urgently needed climate solutions,” Currier continued.

RUSH warns that the acceleration of resource extraction poses a catastrophic threat to both ecosystems and human survival. In response, Indigenous groups and frontline communities are leading a vital, global resistance to defend their territories. It is, however, undermined by a dangerous myth that expanding extraction is necessary to fix the climate crisis.

“The report issues a resounding call to challenge this false narrative to stop the untenable rush for minerals before it becomes an irreversible global catastrophe,” warned Oakland Institute Policy Director and report co-author, Frederic Mousseau. “The stakes could not be higher. If left unchecked, the global mining rush will trigger hundreds of new mines in a short period. The resulting human and planetary devastation will be at a scale never seen before – livelihoods will be destroyed, millions will be displaced, and environmental destruction will become irreversible,” concluded Mousseau.

Read the report

Source: oaklandinstitute.org

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NGO WORK

Acholi land dispute threatens Shs3bn govt-backed Cassava Factory in Pader

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Affected residents demonstrate at acholibur town council offices over a disputed 179-acre piece of land earmarked for a government and gulu archdiocese-backed cassava processing factory in pader district.

Pader, Uganda: A protracted land dispute in Acholibur Sub-county, Pader District, is threatening to stall a Shs3 billion cassava processing factory project jointly backed by the Government of Uganda and the Gulu Archdiocese, raising fears over the future of one of northern Uganda’s most significant agro-industrial investments.

The proposed cassava factory, which is being spearheaded by the Gulu Archdiocese with support from the Uganda Development Corporation (UDC), is expected to boost value addition, create employment opportunities and improve household incomes for thousands of cassava farmers across the Acholi sub-region.

At the centre of the dispute is a 179-acre piece of land claimed by two families, the estate of the late Ignatius Lakere Latigo and that of the late Odwong Joseph Lagoro, both of which maintain ownership rights over the property earmarked for the project.

The dispute escalated following a court-directed boundary opening exercise conducted by a joint security team led by Pader Resident District Commissioner Amos Banyizi. Several affected families have since protested the exercise, claiming it was carried out without their knowledge or participation.

Families question boundary exercise

Mr. Latigo Morris, administrator of the estate of the late Ignatius Lakere Latigo, said his family was never notified about the recent boundary demarcation despite earlier agreements that required all stakeholders to be involved.

He recalled that a stakeholders’ meeting held last year, attended by Archbishop Emeritus John Baptist Odama of the Gulu Archdiocese and other parties, had resolved that any future activities on the disputed land would involve all affected families.

According to Morris, his family was shocked to find the RDC accompanied by armed security personnel carrying out activities on land they claim belongs to them.

“We expected dialogue and participation of all stakeholders before any action was taken,” Morris said.

Local leaders have also questioned how the exercise was conducted.

The LCIII Chairperson of Acholibur Town Council, Okumu Robert, said his office was neither informed nor requested to mobilise residents before the boundary opening exercise.

Mr. Ocen Paul, one of the affected stakeholders, appealed to government to intervene, warning that nearly 150 families could lose land if the matter is not handled transparently.

He further alleged that influential individuals could be influencing the ongoing demarcation despite what he described as valid documentation showing that the affected families still hold an active 49-year lease over the land.

Source: dailyexpress.co.ug

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