Wednesday, July 15, 2020

COVID-19 - The Carnage of Capitalism

On April 23, 2020, with the world in the grips of the Covid-19 pandemic and the FAO warning of a looming global food crisis, Nestlé's shareholders and executives awarded themselves a record dividend payout of $8 billion. 

In a time of a global health and food crisis, this handout is worth more than the entire annual budget for the UN’s World Food Programme and would be enough to cover the average annual expenditures on health care for more than 100 million people in Africa.

Nestlé’s massive 2020 dividend payment was, in fact, just a fraction higher than the previous year's. Such large payouts for shareholders and executives is standard practice for the company-- as it is for all the big transnational food and agribusiness companies, even at times of global health catastrophes.

Other notable shareholder dividends, announced in April this year, include:

 A $2.8 billion payout by the world's largest seed and agrochemical company Bayer AG.

 A $600 million payout by the world's largest poultry producer Tyson

 And a $500 million payout by the world's largest pork company, the WH Group. 

Cargill, the word's largest agribusiness company, is on track to top last year's record payout of $640 million, which it makes to just a small number of Cargill family members. 

The oil palm and rubber plantation company SOCFIN, owned by two French and Belgian families, received 20 million Euros (around $22.5 million) in dividends and remunerations while communities where it operates in Nigeria, Ghana and Cameroon cannot access clean or safe water.

The supply chains of the big food companies, which have always been dangerous places for workers, have now become hotspots for Covid-19 infections and transmission. Across the world, there have been deadly outbreaks in meat plants, port facilities, warehouses, fish canneries, oil palm plantations, fruit farms, supermarkets and all other points along the chains that these companies command.

The results can be seen in the biggest meat exporting nations where conditions are horrific. Hundreds of migrant meat plant workers sick with Covid-19 in Germany and Spain, thousands of cases of workers ill with Covid-19 in Brazil's meat packing industry, and over 20,000 workers infected with Covid-19 in US meat packing plants, with at least 70 deaths.

 Meanwhile, hundreds of thousands of animals are being culled, under atrocious conditions because these massive plants have had to shut production down, and the small abattoirs that could have taken in the livestock, have long since been forced out of business.

With the global economy at a near standstill, agribusiness in the region has continued functioning with total impunity, deepening its impact and harm on communities and ecosystems. In almost all the countries in the region, agro-industrial activities have been exempted from quarantine, as they are considered “essential”, even though their focus is on exports, not on providing food to local people.

For example, Ecuador’s government issued a state of emergency decree paralysing the country, but ensuring that “all export chains, agricultural industry, livestock [industry] … will continue to function.” As a result, workers in the banana and palm plantations, seafood factories, flower farms, and many more, were forced to continue working as if the country was not under a health emergency, thereby exposing themselves to the risk of contracting Covid-19.


 Brazil declared that the production, transport and general logistics of export food chains were essential activities that must continue functioning without restrictions. In this context, exports of meat, soybeans and other commodities are surging - as are the numbers of people exposed to Covid-19 along the export chains. In the Brazilian state of Rio Grande do Sul, a meat export hub, more than a quarter of the confirmed novel coronavirus cases in May were among meat plant workers. Labour prosecutors are now fighting to close infected plants and force companies to implement even basic measures to protect and care for their workers during the pandemic.

Brazil's soybean exports, which are up 38 percent from last year, are another potential hotspot for Covid-19, especially at the ports where trucks and workers are constantly circulating. When the local government of the port town of Canarana in Mato Grosso tried to take action by issuing a decree to pause the export of soybeans and other grains in the absence of proper health and safety conditions, the agribusiness giants Louis Dreyfus and Cargill intervened and were able to reverse the decree within a few days. Canarana is now, in early June, seeing a surge in Covid-19 infections.

Deforestation of the Amazon in Brazil has increased by more than 50 percent in these first three months of 2020 – at the height of the coronavirus pandemic, in comparison to the previous year’s first quarter. Taking advantage of the pandemic smoke screen, with fewer inspection agents able to carry out inspection, agribusiness and mining operations are advancing on protected areas and indigenous territories, increasing the contagion of Covid-19 in indigenous populations. Many observers fear a genocide as a result of these reckless advances of agribusiness and mining operations during the pandemic.

Despite the national quarantine in Argentina, soybean exports and forest clearings have not ceased either. In one of the most preserved forests in the entire Gran Chaco ecosystem, an area of 8,000 hectares is being prospected for clearing. Furthermore, based on monitoring with satellite imagery, Greenpeace denounced that almost 10,000 hectares were cleared in the North of the country since the lockdown began.

Worse is yet to come.

https://www.commondreams.org/views/2020/07/14/agro-imperialism-time-covid-19

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