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Towards a third food regime: behind the transformation

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Abstract

Food regime theory focuses upon the dynamics, and agents, of change in capitalist food and farming systems. Its exponents have been able to identify relatively stable periods of capital accumulation in the agri-food industries, along with the periods of transition. Recently, scholars have argued that—following a first food regime based upon colonial trade in bulk commodities like wheat and sugar, and a second food regime typified by industrial agriculture and manufactured foods—there is an emerging third food regime. This new regime is one that is lead by global corporations that are profiting from the re-organisation of agri-food chains. The delivery of ‘fresh/healthy’ foods is one manifestation; another is the sale, by supermarkets, of ready-meals and other own-brand products. This paper argues that behind the movement to a putative Third Food Regime are changes to the financial system. ‘Financialisation’—the increased influence of finance capital on the agri-food system—not only provides new opportunities for profit-making by hedge funds and private equity consortia, but also creates a situation in which agri-food companies, including food manufacturers, international commodity traders and supermarkets, may benefit. Supermarkets for example, are moving into banking, and are altering their role as they move from being retailers of products, into the provision of capital. Food regime theory needs to consider what lies ‘behind’ the transformation of food and fibre production, to examine not only the role of finance capital in re-shaping relations up and down the agri-food supply chain, but also investigating the tendency for agri-food capitals to seek profits from financial transactions.

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Notes

  1. On the arguments regarding ‘varieties of capitalism’ and the differences between the flexible and ‘impatient capital’ of the Anglo-American model, and the longer term perspectives evident in Germany, Japan or France, see Allen et al. (2007) and Plender (2003).

  2. The IFC director for Global Agribusiness, Oscar Chemerinski, stated that ‘Agribusiness private equity funds investing in farmland are just emerging as an asset class. We are glad to work with Altima Partners in creating new opportunities for emerging markets to expand their food production’ (Commodity Online 2009). The portfolio manager of the Altima One World Agricultural Fund is David C. Nelson, who in 2008, was also appointed a director of Smithfield Foods, the global manufacturer of pork, ham, turkey and other products, with sales in 2007 of US$12b (Smithfield Foods 2009).

  3. See also Investment Week (2008), for an indication of trends in respect of global investment in agriculture in the Third World and elsewhere. Such investments have proved to be very controversial, with critics arguing that by acquiring access to land for domestic food and biofuels, wealthy countries are engaging in ‘land grabs’ in the Third World which will seriously undermine the food security of poor people. GRAIN is one of a number of NGO’s which has started to campaign on this issue, and is documenting dozens of such cases. See http://www.grain.org/front.

  4. For example, Kohlberg Kravis Roberts (KKR), one of the largest private equity companies in the world, owns 35 companies with a combined $95b in annual revenue and more than 500,000 employees. If the portfolio holdings of KKR constituted one publicly traded corporation, it would be the tenth largest company in the Fortune 500 (Behind the Buyouts 2008).

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Authors and Affiliations

  1. School of Biomolecular and Physical Sciences, Griffith University, Nathan, Brisbane, QLD, 4111, Australia

    David Burch

  2. School of Social Science, The University of Queensland, Michie Building, St. Lucia, Brisbane, QLD, 4072, Australia

    Geoffrey Lawrence

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  1. David Burch
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  2. Geoffrey Lawrence
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Burch, D., Lawrence, G. Towards a third food regime: behind the transformation. Agric Hum Values 26, 267–279 (2009). https://doi.org/10.1007/s10460-009-9219-4

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