Drought is good for business, says Glencore chief
THURSDAY 23 AUGUST 2012
The United Nations, aid agencies
and the British Government have lined up to attack the world's largest
commodities trading company, Glencore, after it described the current global
food crisis and soaring world prices as a "good" business opportunity.
With the US experiencing a rerun of
the drought "Dust Bowl" days of the 1930s and Russia suffering a
similar food crisis that could see Vladimir Putin's government banning grain
exports, the senior economist of the UN's Food and Agriculture Organisation, Concepcion
Calpe, told The Independent: "Private companies like Glencore are
playing a game that will make them enormous profits."
Ms Calpe said leading international
politicians and banks expecting Glencore to back away from trading in potential
starvation and hunger in developing nations for "ethical reasons"
would be disappointed.
"This won't happen," she
said. "So now is the time to change the rules and regulations about how
Glencore and other multinationals such as ADM and Monsanto operate. They know
this and have been lobbying heavily around the world to water down and halt any
reform."
Glencore's director of agriculture
trading, Chris Mahoney, sparked the controversy when he said: "The
environment is a good one. High prices, lots of volatility, a lot of
dislocation, tightness, a lot of arbitrage opportunities.
"We will be able to provide
the world with solutions... and that should also be good for Glencore."
Glencore announced pre-tax global
profits of £1.4bn. The G20 is considering holding an emergency summit on the
world food crisis.
Oxfam was scathing about Glencore's
exploitation of volatile world food prices. Jodie Thorpe, from the aid agency's
Grow Campaign, said: "Glencore's comment that 'high prices and lots of
volatility and dislocation' was 'good' gives us a rare glimpse into the
little-known world of companies that dominate the global food system."
Oxfam said companies like Glencore
were "profiting from the misery and suffering of poor people who are worst
hit by high and volatile food prices", adding: "If we are going to
fix the ailing food system then traders must be part of the cure."
Stephen O'Brien, Parliamentary
Under Secretary of State for International Development, said: "We know
that food-price spikes hit the poorest hardest. Ensuring the poor can still
access enough food is vital in times of food-price rises, which is why the UK
is investing in safety nets that deliver food and cash to the poorest."
A Glencore spokesperson said:
"Regardless of the business environment, Glencore is helping fulfil global
demand by getting the commodities that are needed to the places that need them
most."
1 comment:
This (along with other atrocities such as wars over oil)is what SIN is really about--not silly stuff like whether or not people dance side to side or front to front or if they even dance at all, wear heavy make up, or make out in parked cars. THIS is the sort of thing the Hebrew prophets and Jesus would've railed against!
As a side note it's also one of the biggest reasons why I NEVER vote for political parties or politicians who have turned "laissez-faire" economics into a governmental sacrament.
We're all in this together on this terrestial ball and if someone really thinks that they're where they're at in life because they've picked themselves up by their own bootstraps, they've got mush for brains.
Daryl Lach
USA Central
"You Must go Home By the Way of the Cross, To Stand With Jesus in the Morning!"
Post a Comment