Transnational Corporations & Food Consumption (DP IB Geography)

The Influence of Transnational Corporations & Food Consumption

Transnational Corporations (TNCs)

• Transnational Corporations (TNCs) are companies that operate globally

• As a result of globalisation, TNCs have developed 

  • TNCs are companies which operate in two or more countries

  • As communications and transport have improved so have the number of TNCs

• TNCs are powerful and can majorly influence our food consumption habits

Agribusinesses

• Agribusiness is the different stages of commercial agriculture, controlled by a TNC

• They operate through: 

  • Expansion (purchasing smaller holdings)

  • Deforestation and land clearing to increase the size of the land cultivated

  • Monoculture (in large amounts)

  • Heavy pesticide and fertiliser use

  • Using technologies and high-yielding seed varieties 

• Agribusinesses are vertically integrated 

• Examples of Agribusinesses include:

  • Cargill

  • Syngenta

  • Alpha Foods

  • Monsanto

  • DuPont

• Agribusinesses lower costs for consumers as large-scale production is cheaper

• They increase food security globally through exports

  • This improves food access for areas with food shortages

• TNCs control where food is sold

  • TNCs bring in more ‘Westernised’ products into nonwestern developing countries

  • This can impact nutrition patterns (and resulting nutrition-related diseases)

• Through monoculture, TNCs control the food market

  • Farmers grow whatever TNCs require, meaning farmers grow fewer cultural or local foods 

  • Consumers therefore have less choice

• TNCs focus on food enjoyment, rather than providing foods that are nutritious 

  • This encourages people to buy and consume more

The influence of the media

• TNCs often use the media to shape people’s consumption patterns

• TNCs market or advertise their products, to encourage consumption

• As LICs develop, they become more technologically connected

  • TNCs can then advertise via the media

• This could be both good and bad:

  • Marketing of highly processed foods can impact obesity rates and other food-related diseases

  • May impact younger people, as adverts are more appealing to the younger generation

    • Some adverts have pester power, so parents purchase unhealthy foods for their children 

  • Can completely change attitudes toward foods e.g. the avocado 

    • Avocados were previously an unknown fruit - the alligator pear

    • The negativity surrounding high-fat diets during the 1980s impacted the sale of avocado

    • An avocado mascot appeared - Mr Ripe Guy!

    • The Superbowl marketed the humble avocado, with a guacamole recipe competition with NFL players

    • Through major advertising, avocados are now a hugely successful commodity

• Foods are advertised as convenient and quick, which panders to the majority of the population

• Using celebrities and well-known/trusted individuals influences more people

• The growth of TikTok and other social media platforms allows TNCs to gain greater influence over people’s diets