This is a conventional method of how the food system works. This method highlights how the resources that flow from the farm are mainly to cooperative, who are some of the main of the suppliers of the big super market. These in turn attract the most customers. This is the way today’s groceries works.
The flow of this system is that the Co-operative provides the seed and the other necessary items to the farmers and in return the farmer sign a contract of some sort, which basically outlines is that the farmer would promise to buy outputs from this co-operative. These contacts also let the farmer’s barrow money to start their enterprise with a continuous interest. The only problem with these kinds of interest is that they are cumulative and would result in a monumental amount when the capital with interest is paid. The argument get complicated, because from a farmers point of view this is the only way out and it is nothing but a downfall, however from a Co-operative prospective this is how they make their profit. Therefore there is no pointing figure at anyone.
The second flow in the system is that these co-operative will make a tempting offer to the super market to sell their produce that they have got from farmer at an even cheaper price. This is contract is a little different from the one that a farmer signs this contracts entails all the farmers through the world. One skeptical fact about these big agricultural co-operative is that they have their ties with almost every country in this world.
The last part of the flow is the most crucial ones. The customer and the other market and grocery base that the farmer has. Customer usually opt for what is cheaper, this will eventually lead them to the Super market. However in an ideal situation this would be so that the farmer’s market should have been the bigger outlet since this way the farmer would decide the price. The food and the produce will also comes with a closure.