Global Food Cartel an Instrument for Starvation - 2

Grains: Grains, or cereals as they are often called, consist of wheat; the coarse grains, including corn, barley, oats, sorghum, and rye; and rice.

The Anglo-Dutch-Swiss cartel's control over wheat exports is shown in Figure 2. For the crop year 1994-95, the cartel's four food export regions produced and traded 88% of the world's wheat exports of 97.2 million metric tons.

But, the four cartel food export regions, while accounting for 88% of worldwide wheat exports, accounted for only 39% of all the world's wheat production of 522.4 million metric tons in the 1994-95 crop year (see Figure 2). That is, their share of world wheat exports was more than double their share of world wheat output. This underscores the point that the cartel built up four regions as the choke points over the world's food supply, even though these regions, collectively, are not often the largest producers.

Figure 3 shows, for the 1994-95 crop year, the percentages that the cartel's four food export regions control of the exports of the leading coarse grains. They control 95% of world annual corn exports, of 69.9 million metric tons; 76% of world barley exports, of 14.8 million metric tons; and 97% of world sorghum (milo) exports, of 6 million metric tons.

Within these export regions, the cartel's six leading grain companies have, historically, built up total domination of the external grain markets. While the cartel's export regions dominate 76-97% of the world's grain trade, depending on the grain, the cartel's six grain companies also control the exports of the four regions.

For example, in the 1994-95 crop year, the United States exported 102 of the world's 215 million metric tons in grain exports, nearly half the total. It accounted for 33% of world wheat exports, 83% of world corn exports, and 89% of world sorghum exports, making it the leading exporter in each of these three markets.

Now, let us turn to the leading grain companies' command of America's grain export market, with America itself controlling nearly one-half of all world grain exports. Figure 4 shows that the cartel's Big Six grain trading companies own and control 95% of America's wheat exports, 95% of its corn exports, 90% of its oats exports, and 80% of its sorghum exports. A few smaller companies, almost all in the grain cartel's orbit, control the remaining market share. The grain companies' control over the American grain market is absolute.

The Big Six grain companies also control 60-70% of France's grain exports. France is the biggest grain exporter in Europe (the world's second largest grain exporting region), exporting more grain than the next three largest European grain exporting nations combined.

Figure 5 shows that the Big Six, along with some affiliated Argentine companies such as Nidera and ACA, control 67.8%, or two-thirds, of Argentina's grain exports. Argentina is the fourth largest grain exporter in the world.

Canada and Australia combined are the world's third largest grain exporting region, after America and Europe. Although they have their own unique internal picture, with a modicum of political influence from farmers, both are British Commonwealth nations, under the thumb of Queen Elizabeth II.

In sum, the Anglo-Dutch-Swiss food cartel dominates 80-90% of the world grain trade. In fact, however, the control is far greater than the sum of its parts: The Big Six grain companies are organized as a cartel; they move grain back and forth from any one of the major, or minor, exporting nations. Cargill, Continental, Louis Dreyfus et al. own world shipping fleets, and have long-established sales relationships, financial markets, and commodity trading exchanges (such as the London-based Baltic Mercantile and Shipping Exchange) on which grain is traded, which completes their domination. No other forces in the world, including governments, are as well organized as the cartel, and therefore, London's power in this area remains unchallenged.

Milk and Milk Products: The big exporters of milk and milk products are three out of the cartel's four basic export regions: the United States; the European Union plus Switzerland (which is not an EU member); and the British Commonwealth countries of New Zealand, in particular, and Australia.

In 1994, the cartel's domination of dairy and dairy products was astonishing. Figure 6 shows that the cartel's food export regions controlled 89% of the world's export of whole milk powder, of 1.08 billion metric tons; 94% of the world's export trade of 653 million metric tons of butter; and 86% of the world's export trade of 1.11 billion metric tons of cheese. It also controlled a huge portion of the export of condensed milk.

The case of whole milk powder exemplifies the process of the cartel's control. Milk is not usually exported in liquid form, except for short distances over nearby borders; it is usually exported either as whole milk or skim milk powder, or as condensed milk. When it is exported as whole milk powder, it is reconstituted upon delivery, usually at the ratio of 10 parts water to 1 part whole milk powder. Of the world's export of 1.08 billion metric tons of whole milk powder in 1994, the developing world imported 885 million metric tons, or 82% of the total.

Nestlé Corp., S.A., based in Vevey and Cham (near Geneva), Switzerland, and Borden, Inc., based in Columbus, Ohio, are the two largest exporters of whole milk powder in the world. Founded in 1867, Nestlé grew significantly in 1905, when it merged with the Anglo-Swiss Condensed Milk Company, also of Switzerland. Nestlé S.A. illustrates the food cartel's global reach: It is the number-one world trader in whole milk powder and condensed milk; the number-one seller of chocolate, confectionery products, and mineral water (it owns Perrier); and the number-three U.S.-based coffee firm. Its products include Nestlé chocolate and candy; Libby fruit juice; Carnation Condensed Milk; Buitoni spaghetti; Contadina tomato paste; Hills Brothers and Nescafé coffees; and Stouffers' restaurants and frozen foods. (It also owns 26% of the world's biggest cosmetic company, L'Oreal.) All told, it is the biggest food company in the world. In 1994, there were 13 countries in which Nestlé had sales of 1 billion Swiss francs or more, including all advanced sector nations. Its total 1994 sales were SF 56.9 billion, or $45.5 billion. Its 1994 profits were $4.8 billion, bigger than all but a half-dozen companies.

Nestlé chairman Helmut Maucher is on the board of J.P. Morgan, British intelligence's leading bank in the United States. Its board of directors serves as a retirement home for the world's central bankers: Fritz Leutwiller, former chairman of the Basel, Switzerland Bank for International Settlements, the central bank of central banks, is on Nestlé's board, as is Paul Volcker, who, as chairman of the U.S. Federal Reserve Board in 1979 and the early 1980s, put the world economy through what was referred to as "controlled disintegration."

Borden is the second biggest milk powder producer, through its KLIM milk powder division. It is also one of the world's biggest condensed milk producers, through its Eagle Brand sweetened condensed milk. In 1995, Borden was bought by the leveraged buy-out firm of Kohlberg Kravis Roberts, which is headed by Henry Kravis, who was finance committee co-chairman of George Bush's 1992 Presidential campaign. As a result of the 1988 merger of R.JU. Reynolds and Nabsico, KKR now owns 33% of, and effectively controls, RJR Nabisco, which produces nine of the top ten cookies and crackers brands sold in America. KKR also owns a portion of Beatrice Foods, a conglomerate, which makes KKR one of the top five food companies in the world.