10. Intensification of food production - Economic

The intensity of food production is also dependent on economic factors.

Type of farming

I) Subsistence farming

• Subsistence farmers grow crops for own consumption.

• Subsistence farmers are usually poor and have small farmland.

• They use simple farming tools and their surpluses are usually irregular and quantity is low

• Thus this contributes to low intensity of food production.

• For example, areas in Sub-Saharan Africa practice subsistence farming and usually grow staple food such as cassava.

II) Commercial farming

• Commercial farmers grow crops for sale.

• Commercial farmers are usually rich and have large farmland.

• They also have the ability to invest in machinery such as tractors and combined harvesters to help boost food production.

• Thus this contributes to an increase in the intensity of food production

• For example, areas in Europe, North and South America practice commercial farming and usually grow livestock, wheat, tea, coffee and sugarcane.

Demand and capital

· Demand refers to people’s willingness and ability to obtain a particular food crop or product. The demand for certain types of food affects the intensity of their production. The demand for food changes according to the tastes and preferences of consumers, and affects the amount and type of crops produced.

· The amount of capital a consumer has, in the form of money or other assets, affects whether a demand can be met. China used to be a producer and exporter of corn. In recent years, more corn has been needed to feed livestock as the demand for meat by a larger and wealthier population increased. As the local production of corn was not able to meet the increasing demand for food for livestock, China started to import corn from other countries such as the USA. As China’s population grew in wealth, this allowed for the demand for more meat to be met. Hence the USA increased its production of corn for export to China to feed livestock. In turn, more livestock can be reared for meat.

Agri-business

· Companies are involved in most stages of the food supply chain, including farming, processing and retailing.

· Large food companies able to withstand the impact of changes in the environment, e.g. flooding, compared to small-scale farmers.

· Agribusinesses are able to invest in technology to increase food production including research to produce crop with greater yield.

· As they have a worldwide network of different farming, distribution and processing centres, they have greater control over crop production. Their production costs are reduced and hence the retail cost of food may be kept low.

Watch the following video on agribusiness in Africa.

The current trend is moving towards agribusinesses which are more profitable - find out more about the characteristics of agribusinesses