Melnikov A.B., Kolesnikova E.O. Corporate Control in Global Agrifood System

http://dx.doi.org/10.15688/jvolsu3.2014.6.15

Melnikov Aleksandr Borisovich
Doctor of Economic Sciences, Professor,
Head of the Department of Economics and Foreign Economic Activity,
Kuban State Agrarian University
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Kalinina St.,13, 350044 Krasnodar, Russian Federation
Kolesnikova Elizaveta Olegovna
Postgraduate Student,
Department of Economics and Foreign Economic Activity,
Kuban State Agrarian University
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Kalinina St., 13,350044 Krasnodar, Russian Federation


Abstract. The current state of global agrifood system is characterized by the increase in large enterprises concentration at each of food chain stages. One of the key factors providing the corporate control of multinational corporation is represented by the achievement of vertical and horizontal integration at each step of production, processing and sale of agrifood production. At this, the vertical and horizontal corporate integration is considered as the factor providing development and stability of control over the multinational corporations in agrifood sector. The classification of primary activities of agroindustrial multinational corporations including the leading multinational corporations is presented. The food chain of the largest multinational corporations is analysed on the basis of the following criteria – gene material, seeds, chemical fertilizers, trade and processing of raw agricultural material, processing industry, supermarkets. The analysis of consequences of agrocorporations concentration is also carried out on the example of seed farming branch and retail trade enterprises. The authors give recommendations on the adaptation to the consequences of multinational corporations expansion. Within these corporations it is necessary for the governments of host countries to improve the state legislation in the field of effective regulation of oligopolistic bodies; to make corporations responsible for any violations of the labor legislation; to provide conditions for competition at the food market and to control the merges and absorptions at the different stages of food chain.
Key words: transnational corporations, corporate control, agrifood system, concentration, market power.

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Corporate Control in Global Agrifood System by Melnikov A.B., Kolesnikova E.O. is licensed under a Creative Commons Attribution 4.0 International License.

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