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

Current Agriculture, Food & Resource Issues

Management Methods and Capabilities

Management training and experience is beginning to recognize and encourage global
experience. Transnational corporations develop a global perspective in their management
teams through training and placements in different parts of the world as well as through
initiatives to develop the management skills of local managers, integrating them into the
global organization. Leading CEOs will likely need to be able to speak at least two or
three languages (Ireland and Hitt, 1999).

Globalization and Concentration Activities in North America

Trends in globalization and concentration activities were developed from a literature
review, an analysis of U.S. and Canadian government agricultural and industry databases,
various websites, and informal discussions with managers, public officials and academics.
Data for the study of Canadian mergers and acquisitions were secured by filtering data
from the Annual Directory of Mergers and Acquisitions in Canada for the five-year
period 1996-2000. Agri-food sector data were included in the consumer products
category. Data were screened for food-sector relevance and for confirmation of whether
the deals actually were completed.

When one examines the globalization and concentration activities around the world a
few trends are apparent.

15

10

5

0

1993--1994------1995------1996______1997______1998      1999 2000

-5

-10

-15

—Bulk Imports              —■— Intermediate Imports

co— Consumer-oriented Imports -→--Bulk Exports

■ Intermediate Exports → Consumer-oriented Exports

Figure 4 Composition of Canadian agri-food exports and imports by degree of
processing (billions of Cdn.$)

Source: Quarterly trade data at http://www.agr.ca/policy/epad

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