Growing Consolidation of Ownership in Global Agrifood System



Introduction1

Discussion1

Globalization in Agrifood System2

The Dynamics of Consolidation2

Horizontal Integration3

Vertical Integration3

Global Expansion3

Effects of Consolidation4

Effects on Farmers4

Effects on Consumers5

References8

Growing Consolidation of Ownership in Global Agrifood System

Introduction

Nowadays food production, food processing and food consumption are like some economic activities, which are interconnecting local and global strategies which are also combined in so many complicated manners (Bowen, 2011). There are so many decisions which are made on issues like where and how the food is going to be produced, in which combination they will be consumed and are made on global levels.

In Agrifood, just like any other system there are so many companies which have organized their productions in developing countries for the sake of competing globally. This essay is about to discuss the growing consolidation of ownership within the global Agrifood system. This is going to do an analysis that in what way it has actually affected on food producers or food consumers.

Discussion

Despite of the fact, today, shelves in grocery store appear to be providing an abundant choice to their visitors, there are most of the products which are marketed by small-sized and diminishing number of firms. Various enormous sized multinational corporations are going for consolidation in their control over their food system; this is inclusive of organic sector. This particular trend has increased concerns regarding how all of these powers are exercised. As a matter of fact most of such corporations are actually accountable in front of their shareholders; this is although not for the communities in which they are operating. This particular situation might seem to be bleak right now; this is being stated as corporate dominance is being confronted by groups which are affected adversely, including farmers, consumers and workers.

Globalization in Agrifood System

When it comes to agriculture and the food system the definitions associated with the globalization are fairly broad. The term globalization in the context of Agrifood system has three most fundamental definitions which are as follows:

Looking at the intensification and multiplication of the economic, social, political and cultural which is in link with there among the organization, people, and countries in the context of world

The other one is the tendency to universal application of the cultural, economic, political, institutional, and legal practices

Emergence of a significant level of spillover which is from the behaviors of individuals as well as societies with the rest of the world (von Braun and Díaz-Bonilla, 2008).

The Dynamics of Consolidation

 Food system can be seen like some long chain; a chain which is with food is linked in a chain or is passing by a huge number of steps in the way from farmers to the consumers, for example; food storage, processing and so on. It is identified by Heffernan, (1999) that there is a worrisome trend, emergence of different groups of firms which have been working in order to put lock for chain and also will make attempts for the sake of controlling it from the gene to the shelves of ...