Wilkinson (2009): Globalization of Agribusiness & Developing World Food System

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


2
007: 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
f
oreign 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.

What Monsanto Doesn't Want You To Know...The Genetic
Conspiracy

http
://www.youtube.com/watch?v=
szvX9abGkOM

8.49 min


http://www.youtube.com/watch?v=
p5oixaFrppA

8.47 min


http://www.youtube.com/watch?v=
fnqxuSMArBA

8.42 min


Feeding
Nine Billion: A Solution to the Global Food Crisis by Dr.
Evan Fraser



http
://www.youtube.com/watch?v=
raSHAqV8K9c

12,22 min