Question 1

Case: The plight of the bumble bee
Farmers are losing money, not due to bad crops but due to the rise in the cost of keeping or buying bees. Honey bees are disappearing around the globe and no one knows exactly why. Some observers speculate that toxic chemicals, killer parasites or freezing temperatures may be to blame. In the winter of 2013, U.S. beekeepers lost 31% of their bee colonies compared with 21% the previous year. The Canadian Honey Council has reported an average loss of 35% of bee colonies in Canada over the past 3 years, and there are no signs of improvement. Similarly, in Britain, bee farmers lost approximately half of their bee colonies during the winter months.
According to Margaret Ginman, the general secretary of the Bee Farmers' Association, it has been one of the worst years in history. Dan Davidson, president of the Ontario Beekeepers' Association, has stated that some beekeepers that have lost 70% since last year, which is a huge amount that can't be recouped in one season.
Whether or not you eat honey, bees are critical to humans. Bees are pollinating insects that contribute $200 billion to the agriculture industry globally each year. About one-third of all the food we eat is dependent on the pollination by bees. Broccoli and almonds are just a couple of examples. A lower supply of bees and less pollinated crops could result in higher food prices and food shortages to the general public.
In the case of declining bees, smaller farmers are often harder hit than larger agribusiness, because they don't have the capital and resources to bounce back when times get tough. David Schuit, a honey producer in Elmwood Ontario, was hoping to expand last year when tragedy struck. One day, he found his bees in 'terrible agony.' They were going around in circles, venom was dripping around their backs, and many were unable to find their way back to their hives. The Schuit family farm lost 90% of their bees (approximately 37 million of them) and barely produced half of the honey they normally made in a year. The result - they had to sell their 100 acre, organic farm because they no longer had the income to sustain it.
The U.S. Department of Agriculture has reported that the decline in the honey bee population is a complex problem caused by many variables. Queen bees usually mate while flying, so an increase in rain or stormy weather may prevent them from moving around. But there are other factors involved as well. The Schuits and other agriculturists are blaming the decline of bees due to neonicotinoid pesticides. According to the Globe and Mail, "these are nicotine-like substances that attack the nervous system of insects. They are also water soluble, meaning they can be added to the soil and taken in by the entire plant, making every part of it lethal to bugs." And they are used across the globe for many agricultural products.
Soybean, corn and canola farmers, are a few examples, often coating their seeds with this insecticide. Health Canada's Pest Management Regulatory Agency noticed honey bee deaths often corresponded with corn-planting season. What was the result? After testing bee populations in the region, researchers found that about 70% of bees had traces of neonicotinoids.
While the European Union has already passed a 2-year ban on neonicotinoids to try to recover the bee population, Canada has not yet followed suit. While Beekeeper associations support the ban, grain farmers do not. Since the chemical was approved for use in 2004, Canadian grain farmers argue it has been crucial to sustaining their business. Grain farmers estimate that a ban on neonicotinoids would mean more insects and other pests would damage their crops. Some farmers estimate losses could rise to 13% affecting higher prices and reducing competitiveness across Canada and the United States.
Other factors are also being looked into. Pesticides are one issue, but there are also the Varroa mites (from Asia) which seem to invade all bee colonies. And of course, prolonged winters can have an effect too. Clearly, more research is necessary to determine what factors are impacting the decline of bees and how farmers can continue to produce food sustainably and safely now and in the future.
[paraphrased by Natalie Guriel]
(Source: Vidya Kauri and Paul Waldie. No honey, more problems: A catastrophic year for bee colonies. The Globe and Mail. July 31, 2013.)
What type of competition is typical in the agricultural industry? Why is it important in this case?

Accepted Answer

Perfect competition is usually the type of competition that applies to agricultural products, since corn, apples and potatoes, for example, typically cannot be differentiated by brand, design or advertising. As a farmer, you are a price-taker. You have to sell your produce at the market price. In perfect competition, there are a large number of seller and buyers. No one has control over price. Therefore, prices tend to be lower rather than higher compared to oligopoly and monopoly forms of competition. Also, from a customer perspective, if there is nothing different between products, finding the lowest price becomes absolute. If bee populations continue to decline, this could have an adverse affect on profitability of farmers and force many farmers into bankruptcy. Why? Bees will cost more to buy (increasing production costs) and there may be less overall crops produced (lowering revenues from sales).

Question 2

Case: The plight of the bumble bee
Farmers are losing money, not due to bad crops but due to the rise in the cost of keeping or buying bees. Honey bees are disappearing around the globe and no one knows exactly why. Some observers speculate that toxic chemicals, killer parasites or freezing temperatures may be to blame. In the winter of 2013, U.S. beekeepers lost 31% of their bee colonies compared with 21% the previous year. The Canadian Honey Council has reported an average loss of 35% of bee colonies in Canada over the past 3 years, and there are no signs of improvement. Similarly, in Britain, bee farmers lost approximately half of their bee colonies during the winter months.
According to Margaret Ginman, the general secretary of the Bee Farmers' Association, it has been one of the worst years in history. Dan Davidson, president of the Ontario Beekeepers' Association, has stated that some beekeepers that have lost 70% since last year, which is a huge amount that can't be recouped in one season.
Whether or not you eat honey, bees are critical to humans. Bees are pollinating insects that contribute $200 billion to the agriculture industry globally each year. About one-third of all the food we eat is dependent on the pollination by bees. Broccoli and almonds are just a couple of examples. A lower supply of bees and less pollinated crops could result in higher food prices and food shortages to the general public.
In the case of declining bees, smaller farmers are often harder hit than larger agribusiness, because they don't have the capital and resources to bounce back when times get tough. David Schuit, a honey producer in Elmwood Ontario, was hoping to expand last year when tragedy struck. One day, he found his bees in 'terrible agony.' They were going around in circles, venom was dripping around their backs, and many were unable to find their way back to their hives. The Schuit family farm lost 90% of their bees (approximately 37 million of them) and barely produced half of the honey they normally made in a year. The result - they had to sell their 100 acre, organic farm because they no longer had the income to sustain it.
The U.S. Department of Agriculture has reported that the decline in the honey bee population is a complex problem caused by many variables. Queen bees usually mate while flying, so an increase in rain or stormy weather may prevent them from moving around. But there are other factors involved as well. The Schuits and other agriculturists are blaming the decline of bees due to neonicotinoid pesticides. According to the Globe and Mail, "these are nicotine-like substances that attack the nervous system of insects. They are also water soluble, meaning they can be added to the soil and taken in by the entire plant, making every part of it lethal to bugs." And they are used across the globe for many agricultural products.
Soybean, corn and canola farmers, are a few examples, often coating their seeds with this insecticide. Health Canada's Pest Management Regulatory Agency noticed honey bee deaths often corresponded with corn-planting season. What was the result? After testing bee populations in the region, researchers found that about 70% of bees had traces of neonicotinoids.
While the European Union has already passed a 2-year ban on neonicotinoids to try to recover the bee population, Canada has not yet followed suit. While Beekeeper associations support the ban, grain farmers do not. Since the chemical was approved for use in 2004, Canadian grain farmers argue it has been crucial to sustaining their business. Grain farmers estimate that a ban on neonicotinoids would mean more insects and other pests would damage their crops. Some farmers estimate losses could rise to 13% affecting higher prices and reducing competitiveness across Canada and the United States.
Other factors are also being looked into. Pesticides are one issue, but there are also the Varroa mites (from Asia) which seem to invade all bee colonies. And of course, prolonged winters can have an effect too. Clearly, more research is necessary to determine what factors are impacting the decline of bees and how farmers can continue to produce food sustainably and safely now and in the future.
[paraphrased by Natalie Guriel]
(Source: Vidya Kauri and Paul Waldie. No honey, more problems: A catastrophic year for bee colonies. The Globe and Mail. July 31, 2013.)
Do you think neonicotinoids are sustainable for agricultural use? Why or why not?

Accepted Answer

While there is some debate on the proven cause of bee population decline, neonicotinoids appear to be a factor in ongoing bee deaths across the globe. Here a few of the reasons:
The Europen Union has already banned the chemical and there is pressure for Canada to do the same. There appears to be enough of proof of the damage to bees in Europe.
Health Canada's Pest Management Regulatory Agency noticed honey bee deaths often corresponded with corn-planting season. What was the result? After testing bee populations in the region, researchers found that about 70% of bees had traces of neonicotinoids.
Conclusion: The use of neonicotinoids does not appear to be sustainable for long-term agricultural use.

Exam 11: Section 2: Is Sustainability Just a Buzzword