Putting Globalization and Concentration in the Agri-food Sector into Context

Number 3/2002/p. 29-48

A Journal of the Canadian Agricultural Economics Society

Putting Globalization and Concentration

in the Agri-food Sector into Context

David Sparling

Assistant Professor, Department of Agricultural Economics and Business,
University of Guelph

Erna van Duren

Associate Professor, Department of Agricultural Economics and Business,
University of Guelph

The Issue

From the protests in the streets of Genoa, Quebec and Seattle to the U.S. Senate, one
doesn’t have to look far to find opposition to globalization and concentration.

“... [D]o something about antitrust, the concentration that is clogging the free market ...^,,1
was one plea in the Senate debate of the Wellstone Amendment 2752. The proposal to
place a moratorium on large agribusiness mergers and to establish a commission to review
agricultural mergers, concentration, and market power was defeated 71 to 21 but provides
an indicator of the concern felt in some quarters. Similar legislative proposals have been
made in the European Union and again in the United States.

Globalization and concentration have changed the agri-food sector. To experience
global competitors, a firm does not have to enter new markets; the competitors will come
to the firm. Adapting to the changing global landscape requires managers and policy
makers to view the world differently, understand the factors behind the changes and plan
how best to alter corporate strategy or government policy to meet the new challenges.

Implications and Conclusions

For both agri-food managers and policy makers, an essential element of success will be
constant environmental scanning to identify both the opportunities and the threats
resulting from globalization and concentration. The challenge will be for the private and

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