Presentation on theme: "Wilkinson (2009): Globalization of Agribusiness & Developing World Food System."— Presentation transcript:
Wilkinson (2009): Globalization of Agribusiness & Developing World Food System
Key Issues: 1.Metropolitan corporate capital aims at subjugating the food markets in DW through the global concentration of agribusiness and food systems of the DW 2. In Emerging economies: national capitalists and the state play key roles in consolidating urban food systems
Foreign Investments: 1980s and 1990s: MNCs became oligopolies in order to deal with the end of baby boom and the declining food consumption in the Core countries- few controlled the market. Nontraditional exports and new foods -- sea foods, fruits, and vegetables, from developing countries to metropolitan markets were initiated to fill the slack. In the 1980s, patents of genetic crops using biotechnology - DW accepted patents as a precondition of joining WTO : the seed, fertilizer, and chemical inputs- especially, all export related agri sectors sectors in Latin Am were pressured by foreign MNCs.
Foreign Investments (Contd) Besides input sectors, retail food sector of the South, e.g., European corporations, i.e., Carrefour (in 1970s), expanded their reach in 1990s into DW markets. U.S. Wal-Mart invested in the convenience and fast food sector. Concentration in Global Food Systems: MNCs and oligopolies in agri-food industries and in land and water resources both for fuel, livestock and people became the norm in global investment - a result of food insecurity concerns in world commodity trade. Significant concentration of control of food and agriculture :control over 40% many at 70-80% level
Emerging Countries in the Global Agrifood Economy: DW and the “nutritional transition”, a shift to high animal protein and veg. fruit diet offered opportunities for the expansion of domestic food companies in Brazil and Argentina & Thailand suppliers of white meats (poultry and pigs) –rise of domestic agribusiness firms—Sadia and Perdigão in Brazil & Charoen Pokphand Group in Thailand. In the red meat sector: Brazilian firm JBS/Friboi is the world’s largest firm Thailand’s Charoen Pokphand Group has become the regional FDI Foreign investment in seafood sector has led to an explosion of fish, shrimp restaurant chains in the core countries
Brazil in the New Global Agrifood System Total cultivable hectares: 340 million 2007: largest exporter of: red meat, poultry, sugar, coffee, and orange juice– leads globally soybeans, soy meal, and soy oil: 2 nd Corn exports: 3 rd Pig and collton: 4 th Brazil is global leader in domestic agrifood corporations and 3 rd domestic consumer market in the developing world Strong Domestic Firms emerged since the 20 th C: sugar, coffee, milk, soy and white meats, orange juice for export
Domestic firms consolidated themselves, e.g., Ceval, Sadia, and Perdigão led in the expansion of animal feed, esp. soybean. New technologies led to growing soybeans in the savannah fields Due to deregulation (Washington Consensus) of the 1990s. Foreign MNCs, e.g., ADM replaced the domestic firms. Now, most of Brazil’s soy crushing and trade: Four leading global MNCs—Bunge, Cargill, ADM, and Dreyfus. – they dominate because of their global control over the key intermediate good, i.e., fertilizer input required for seed, grain and oil production.
A result of technological advancement in agriculture: Biotechnology and the strong foreign MNCs greed to acquire rights for plants and patent them quickly transformed Brazil’s private seed sector – now, global MNCs, e.g., Monsanto, Syngenta, and Dupont, dominate it Weakens the research system in the public domain Genes that are strategic are acquired by the giant corporate conglomerates Brazil’s social movements and NGOs resist them … yet genetic seeds dominate soy, corn, cotton and other sectors such patents are spreading.
China: The New Focus f or Agribusiness China not in WTO in the 1990s – therefore had control of trade and investment flows – no neolib policies imposed on its trade. The Chinese government policies on its FDIs in joint ventures with local capital and tech transfer agreements. Key exports: seafood, fruits and vegetables, processed food products. Driven by domestic market from rapid urbanization 2008: Food importer for the first time – in 10 yrs 50% of global soy importer – FDIs are flowing in for crushing imported unprocessed grainsderegulation of this market as China has now joined the WTO
Chinese investments in agifood in Asia, Africa, and Latin America are for exports to its Chinese domestic market – Can & will China eventually challenge the hegemonic global MNCs who now control the global markets? High-end consumer goods: Chocolate, etc. Global European MNCs in dairy and drinks have not yet taken over the regional players: in the Chinese market—President (Taiwan), Charoen Pokphand (Thailand), Sinar Mas (Indonesia), Kerry (Malaysia)
2008: China removed financial incentives for FDIs China tries to promote agri supply base in Asia, Africa and LAm to increase its food security.
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