The world is grappling with a significant hunger crisis, and private corporations are reaping substantial profits as a result.
Why It Matters: The largest food-trading companies have achieved the status of oligopolies and are increasingly referred to as “unregulated financial institutions,” as outlined in a critical 29-page chapter of the 2023 UNCTAD trade and development report titled “Food Commodities, Corporate Profiteering and Crises.”
The report’s authors highlight a concerning trend: “The profits of four major food traders rise during periods of market volatility and during crises.”
This issue takes on added gravity when considering that more than 345 million people are confronting severe food insecurity this year. This represents an increase of 200 million people compared to the pre-pandemic era. While private companies may not hold the key to resolving this crisis, the extent of their unprecedented profits remains a source of concern.