The first article titled Home Economics: Will Rising Food Prices Ruin the Recovery written by Michael Schuman in the Time discloses the problem of food prices and its importance to the global economy. The rise of prices is usually caused by droughts and other unsuitable weather conditions. However, the food is one of the basic conditions of life on the Earth. Therefore, the rising of food prices causes two very important changes. First, it is consumption effect. Families, who are to allocate larger share of their weekly income on food basics, are forced to save money on something else: clothes, cars, education of their children. It is a big issue for advanced economies. Secondly, there is a policy effect. The rising of food prices causes higher inflation. This is an extremely important problem in the developing world. All in all, economists cannot predict on how high the prices would actually be. This article demonstrates on how different economic branches are dependent on each other.
The second article titled Food for Thought printed in The Economist sheds light on one of the biggest health problem in the world – obesity. On the one hand, sales of packaged food and soft drinks increased dramatically around the world including developing countries such as Russia and China. Fast-food restaurants also enlarge their spaces. McDonald’s, for example, is operating in 119 countries. Despite such an expansion, big food companies treat obesity problem seriously. There are three approaches: remove unhealthy ingredients, add good ones or introduce new products. The problem is that there is little agreement on how to indicate what food is healthy and what is junky. Another problem is of course related to profit. Companies are responsible for short term profitability and long term line of health products. All in all, the position of food companies is ambivalent. The article shows on how profit can hurdle the impulse for making food healthier.
The article Let’s Move Slowly! from The Economist continues the theme of obesity among children. The author points out on Michael Bloomberg’s proposal to ban the fizzy drinks. His idea was not supported not only by the soda producers but also by the community. From the beginning of the Let’s Move campaign started by Michelle Obama to reduce children’s obesity a lot of steps were made: bike lanes were installed, school lunches improved and yet there are still plenty of things to do. The biggest food and beverage companies to reduce 1.5 trillion calories from their products but it means only minus 14 calories from the daily diet of an average American. The problem is much bigger. New York rejected to launch soda tax offered by Bloomberg. This means that the companies are struggling for their profit more than for people’s health. The success of companies and the United States depend on the production of funk food. Therefore, the progress in obesity prevention is slow.
The article Food and Farming printed in The Economist provides an overview of the results of the last year as well as includes predictions for 2013. The food industry still remains one of the most important parts of the economies of developing countries and emerging markets. The prices for grains and soya beans will stay at almost record highs because of droughts in America, Australia and Eastern Europe. Because of El Nino the Asian agriculture could suffer in 2013. The economists predict that the meat consumption will fall in the United States and India would become the largest beef exporter because of its cheapness. Another food related issues of 2013 is obesity. The introduction of the “fat tax” in Denmark will affect other European countries. The planned tax on sugar will harm the local producers. Meanwhile, the struggle for healthier lifestyle will anyhow continue.
Food business is a rich business, states the article Packaged Food: Now, 56 Varieties. The writer from The Economist writes about one of the largest acquisitions in the course of the food business. Warren Buffet, an American investor and Jorge Paulo Lemann, the Brazil’s richest man, joined the Heinz Company. Though there is observed a change in consumer tastes (packaged food loses its place in the centre of malls and supermarkets’ own-labeled production is gaining popularity), Heinz is still successful and has a lot to offer its customers. Furthermore, the company is already global and move up around the world. The successful acquisition can bring even more profit to Heinz.
The food is not only a medium for living; it can solve environmental problems as well. The issue of planet saving is getting more and more urgent lat time, especially in the big cities. Yet the hunger problem in the developing countries remains. The city government of Mexico City invented the solution to both these problems. Since the beginning of March visitors of the Chapultepec park can change their paper, glass, plastic, and aluminum rubbish into tokens, which can be in return to locally grown food, informs the article Recycling in Mexico. Junk Food in The Economist. This project was launched to resolve a big waste problem. A total of 12,600 tons of rubbish was received every day. The project helps to recycle up to 20 tons of every month. Besides, project supports farming in outskirts of Mexico City. However, nowadays the “Barter Market” is not profitable. Money gained for recycling are twice as much smaller as money needed for food, which is distributed among locals. Nevertheless, the aim of the project is not make money but to learn people recycle their rubbish. This article shows how smart solutions can improve both economical and environmental situation.
The article Food and Drinks on Planes offers a new view on the meals and beverages sold on the planes. It is well known fact that the water boils at about 890C at airplanes because of the altitude. Therefore, the taste of tea and coffee leaves much more to be desired. The Twinings Company developed new tea bags especially for making beverages on board. Blend of three teas, two of them are suited to fast extraction, promises the perfect tea cup at any altitude accessible by planes. Furthermore, the last researches held for Lufthansa proved that the sense of smell in the airplane is equivalent to those sensations a man gets during the cold. This news could make travel companies to change their menus completely and turn from neutral meals to spicy ones because the feeling of spiciness does not change because of altitude. This article demonstrates how that the food is an important part of marketing strategy. By increasing passengers’ comfort companies could reach higher profit.
The eighth article titled No Bargains in Food taken from Forbes Magazine continues the topic started in The Economist’s article. It is related to Warren Buffet’s purchase of the Heinz Company. Tom Aspray, the author of the article, provides a brief analysis of the food and beverages market. He summarizes the current situation with General Mills, Kelogg and Hormel Foods companies. Yet, the author concludes that the situation in this business is not clear. Nevertheless, the breakouts and buyouts in this sector could have impressive consequences.
In the article “Conscious Capitalism”: Q&A with Whole Foods CEO John Mackey from The Forbes Magazine the interview with author of the conception of conscious capitalism is included. John Mackey tells on how the Whole Foods Market follows the principles of conscious capitalism – the concept, which lies on balance between business and social impact. For example, stores of healthy food are located in different districts of the cities to provide everyone with access to healthy meals. Besides, John Mackey discloses the importance business in changing the global quality of life. Furthermore, the interviewer discusses the problem of food waste. John Mackey demonstrates on how food and beverage business is concerned with environmental and social problem, on how business is on the way of sustainable development, which of course is a sign of great economic changes.
The last article printed in Forbes and titled Food Is My Job reveals the story of a cook. Previous articles dealt with food as a manufacturing, with companies and governmental organizations. This article deals with thoughts of a man. He talks about his job, its advantages and disadvantages. He talks about false food lovers and the truly ones. The story is related to the economy in a way that everyone spends about one third of his or life at work and it is very important to love things you do. Besides, it provides another view on food industry. It gives insight into restaurant business. The amount of money earned by restaurants cannot be compared with those by food manufacturers but the restaurant business is not only the money, it is art.
All in all, both articles Will Rising Food Prices Ruin the Recovery and Food and Farming discuss the issues of price determination and dependence of economic crisis and prices for food. The second group of articles, which can be separated, is formed by articles about obesity (Food for Thought, Let’s Move Slowly). Authors describe that the problem is urgent and why so little was done to solve it. This groups is dealing with notions of manufacturing, global companies, shareholding and profitability. The third group discloses the background and predictions for Heinz Company acquisition. Merges and acquisitions are initial part of any business and food one is not an exception. As well as breakouts. The stock is also discussed in thess articles. The last separate group explains environmental and sustainable issues and how they are related to food and the economy of a city or store chain (Recycling in Mexico, Conscious Capitalism). Articles about food and drinks in planes and a cook are not related to each other but they give insights into importance of technological advances and human factor.
Works Cited
Schuman, Michael. “Home Economics: Will Rising Food Prices Ruin The Recovery?” Time. Business and Money, 9 Aug 2012. Web. 12 March 2013.
