跨國(guó)企業(yè)與農(nóng)產(chǎn)品國(guó)際貿(mào)易組織（英文版）

第九講跨國(guó)企業(yè)與農(nóng)產(chǎn)品國(guó)際貿(mào)易的產(chǎn)業(yè)組織

Lecture9MultinationalAgribusinessandAgriculturalTrade中國(guó)人民大學(xué)農(nóng)業(yè)與農(nóng)村發(fā)展學(xué)院曾寅初YinchuZengSchoolofAgriculturalEconomicsandRuralDevelopmentRenminUniversityofChinaContentPart1

ConcentrationTrendinFoodIndustryPart2

GobalPlayersintheFoodandBeverageindustryPart3

StrategicProfilesofWFBTop30Part4

ClusterofFirmsinAgri-FoodBusinessPart5

“ABCD”ofWFGlobalPlayersandChinaPart1

ConcentrationTrendin

FoodIndustryConcentrationTrendinFoodIndustry:1990s(1)CR4istheconcentrationratio(relativeto100%)ofthetopfourfirmsinaspecificfoodindustryBeefPackers

1999CR4=81%79%(1998),76%(1995),72%(1990)1Tyson(IBPInc.)2ConAgraBeefCompanies3Caigill(ExcelCorporation)4FarmlandNationalBeefPkg.Co.

Source:USDA“AssessmentoftheCattleandHogIndustries,2000.PorkPackers

1999CR4=59%44%(1992),40%(1990),34%(1989),37%(1987)1Smithfield2Tyson(IBPInc.)3ConAgra(Swift)4Cargill(Excel)

Source:FeedstuffsReferenceIssue(2001)andTysonAnnualReprot(2001)Note:IncudingFarmlandIndustriesandHormelFoodscreatesaCR6=75%(NYTimes,1/7/99)ProkProduction

1999CR4=46%

1Smithfieldfoods710，000(NumberofSowsin2001)2PremiumStandardFarms(ContiGroup)211,1003SeaboardCorporation185,0004TriuphPorkGroup140,000

Source:USDAHogandPigReport(October2001),SuccessfulFarming(October2001).ConcentrationTrendinFoodIndustry:1990s(2)Broilers

1999CR4=50%49%(1998),46%(1994),44%(1990),35%(1986)

1TysonFoods2GoldKist3Pilgrim’sPride4ConAgra

Source:FeedstuffsReferenceIssue(2001)andOmabaWorld-Herad9/3/2000.Turkeys

1999CR4=45%40%(1996),38%(1994).35%(1992),33%(1992),31%(1988)1Hormel(Jennie-OTurkeys)2Butterball(ConAgra)3CargillTurkeys4Pilgrim’sPride

Source:NationalTurkeyFedaration(2000).AnimalFeedPlants

1999CR4=25%

AnnualCapacity1LandO’LakeFarmlandFeedLLC/PurinaMills15.7Milliontons2CargillAnimalNutrition(Nutrena)8.0Milliontons3ADM(Moorman’s)3.2Milliontons4J.D.Heiskill&Co.2.8MilliontonsSource:FeedstuffsReferenceIssue(2001)ConcentrationTrendinFoodIndustry:1990s(3)TerminalGrainHandlingFacilities

1999CR4=60%1Cargill40,054,000(FacilityCapacityinBushels)2CenexHarvestState31,359,0003ADM30,000,0004GeneralMills17,369,000Source:2002GrainandMillingAnnual.Note:WhenNo.5(LouisDreyfus)andNo.6(ConAgra:Peavey)areincluded,CR6=74%.CornExports

1999CR3=81%1Cargill-ContinentalGrain2ADM3ZenNohSource:F,March2001.SoybeanExports

1999CR3=65%

1Cargill-ContinentalGrain2ADM3ZenNohSource:F,March2001.ConcentrationTrendinFoodIndustry:1990s(4)FourMilling

2001CR4=61%,44%(1987),40%(1982)1ADMMilling298,8002ConAgra250,500(DailyMillingCapacityinBushels)3Cargill220,0004GeneralMills93,700Source:2002GrainandMillingAnnual.SoybeanCrushing

1996CR4=80%,71%(1987),61%(1982),54%(1977)1ADM2Cargill3Bunge4AGP

Source:Feegstuffs(9/22/1997).CensusofManufacturing.EthanolProduction

2001CR4=49%,67%(1999),73%(1995),73%(1987)1ADM9502MinnesotaCornProcessors140(mil.Gal/year)3WilliamsEnergyServices1354Cargill110Source:/prodcap.htmlDairyProcessors

(AnnualSalesinMillionUSD)1DeanFooods(SuizaFoodsCorp)9,2602KraftFoods(PhilipMorris)4,0003DairyFarmersofAmerica2,8584LandO’Lakes2,684Source:DairyFoods:DairyTop100(2001)ConcentrationTrendinFoodIndustryFourfirmscontrolover40percentoftheprocessingofthemajorcommoditiesproduced.Afewfirmsappearinthelistofthetopfourprocessingfirmsforseveralcommodities.Forexample,ConAgraisonthelistoftopfourprocessingfirmsforbeef,pork,turkeysandsheep,aswellasseafoodTheverticalintegrationinthefoodsystem.Forexample,Cargillranksinthetopfourfirmsproducinganimalfeed,feedingcattleandprocessingcattle.Part2

GobalPlayersintheFoodandBeverageindustryWORLD’STOP10F&BCOMPANIES1999annualsales1.NestleSA$41,422million2.PhilipMorrisCompanies,Inc.$31,139million3.ConAgraInc.$24,594million4.PepsiCo,Inc.$20,367million5.Unilever$20,310million6.TheCoca-ColaCo.$19,805million7.Cargill,Inc.$17,143million8.DiageoPLC$16,419million9.Mars,Inc.$14,500million10.ADM$14,283millionSource:FoodEngineering(October2000)WORLD’STOP30FOODANDBEVERAGECOMPANIES:20071CARGILL(7)70.4*16CADBURYSCHWEPPES10.92NESTLE(1)62.6/58.317DIAGEO(8)10.73ARCHERDANIELEMIDLAND

(10)35.118GENERALMILLS9.94PEPSICO(4)2819ASAHIBREWERIES9.95KRAFTFOODS27.420ANHEUSER-BUSH12.5/9.96UNILEVER(5)39.6/21.321SUNTORY9.77BUNGE20.922CONAGRAFOODS(3)9.68TYSONFOODS20.423SMITHFIELDFOODS9.59COCA-COLA(6)19.224KELLOG8.710MARS(9)15.925SARALEE9.8/8.211SABMIlER14.826DEANFOODS8.112DANONE14.127CHS11.4/813LOUISDREYFUS20/13.628KIRIN(MITSUBISHI)8.7/7.814INBEV13.329MICCAINFOODS7.515HEINEKEN11.830LACTAILS7.5Source:FoodIntelligence-SergeGuegan.ExcludeTabacco.*T/FNetSale(bn€)World100Food&BeverageIndustryLeaders:1000milliards€(84%inF&B)=Lessthan10%ofGlobalTop100(allsectors)Attractivefinanceperformance2005-2007AAGR+8.7%Netincomeisoftengreaterthan10%(Nastle,Danone…),even20%(Coco-Cola…)WFCTOP100in2007:ShareandGrowthNorthernAmerica(includeMexico)andUSAaccountrespectivelyfor51%and45%ofTop100totalturnover(with41%34groups)comparedtothe29%ofEU(35groupsofwhich8France)andthe8%ofJapan(15groups)Only5foodgroupsinemergingcountriesareintheworldF&BTop100:FEMSA,BIMBO,MODELO(Mexico),WILMAR(Singapore),SANMIGUEL(Philippines)AspercentagesofTop100totalnetsaleWFCTop100byAreasSomebigcompaniesinemergingcountriesButalreadyalotofalmost2billion€operatorsinemergingcountriesSomeconglomeratesorbigretailersplayorcouldplayasignificantroleintheFoodorRetailsectorForexamples:India:Reliance,Tata,Bharti,Wadia,AdityaBirlaChina:ChinaResourcesEnterprises（華潤(rùn)）TingHsin頂新（Tingyi…康師傅）Uni-President（統(tǒng)一）Malaysiya:SimeDarby,PPBTurkey:Koc,SabanciWorldTop30PrivateF&BGlobalLeaders1CARGILLUSAAgribusiness71HERSHEYFOODSUSAConfectionery8TYSONFOODSUSAMeat72TCHIBODCoffee10MARSUSAConfect.PetF.74WRIGLEYUSAConfectionery13LOUISDREYFUSFAgribusiness80OETKERDDiversified21SUNTORYJWS,Beer,NA81LOTTEKDiversified29MCCAINFOODSUSAFrozen83BONGRAINFDairy30LACTALISFDairy84OSIUSAMeat35ASSOATIEDBRITISHFOODSUKDiversified88GEORGEWESTONCANBakery,Dairy50FERREROIConfectionery94SAPUTOCANDairy54DOLEFOODUSAFruits&Veg.96PERDUEFARMSUSAPoultry60BIMBOMexBakery97SUCRESETDENREESFAgrib.,Trade64PILGRIM’SPRIDEUSAPoultry102SOUFFLETFMilling65CONSTELLATIONBRANDSUSAW&S103BARRYCALLEBAUTSwitzChocolate68BARILLAIPasta,Baking106SCHWANFOODUSAFrozen70BACARDIBermW&S108KIKKOMANJSauces,W&SSource:FoodIntelligence-SergeGuegan.ExcludeTabacco.WorldTop20Food&FuelCooperatives27CHSUSAAgribusiness85AGRVISDAgribusiness32VIONNLMeat87TEREOSFSuger…33FONTERRANZDairy92HUMANAMILCHUNIONDDairy39DANISHCROWNDKMeat95TERRENAFAgrib.,Meat,Dairy42DAIRYFARMERSOFAMERICAUSADairy110SVENSKALANTMANNENFAgrib.,Flour,Bakery44ARLAFOODSDKDairy111GROWMARKUSAAgribusiness47SUDZUCKERDSuger…118SODIAALFDairy49LANDO’LAKESUSADairy121INVIVOFAgribusiness58ROYALFRIELANDFOODSNLDairy134BAYWADAgribusiness75CAMPINANLDairy138DLGDKAgrib.,(Feed)Source:FoodIntelligence-SergeGuegan.ExcludeTabacco.*T/FNetSale(bn€)WorldTop20DairyGroups2NESTLECH62.6/16.3*58ROYALFRIESLANDF.NL4.76UNILEVERHK/NL39.6/913MORINAGAM.I.J412DANONEF14.1/7.973PARMALATI3.826DEANFOODSUSA8.1/7.975CAMPINAMELKUNIED3.630LACTALISF7.5/7.383BONGRAINF3.333FONTERRANZ7.292HUMANAMILCHUNIOND2.942DFAUSA6.394SAPUTOCAN2.844ARLADK6.1109NUMICO→DANONENL2.65KRAFTFOODSUSA27.4/5.249LANDO’LAKESUSA5.7/2.656MEIJIDAIRIESJ4.8118SODOAALF2.5Source:FoodIntelligence-SergeGuegan.ExcludeTabacco.*Total/DairyNetSale(bn€)WorldTop20Meat&PloutryGroups8TYSONFOODSUSA20.4m&p84OSIUSA3.2m&p21SMITHFIELDFOODSUSA9.5m&p96PERDUEFARMUSA2.8p191JBS-SWIFTBra9.2M107GRAMPIANUK2.7m&p32VIONNL7.3M67MAPLELEAFCan4.1/2.6m37NIPPONMEATPACKERSJ6.7m&p25SARALEEUSA8.2/2,6m&p39DANISHCROWNDK6.5m108CHAROENPOKPHANDFOODSTha2.6p1CARGILLUSA5.0m113SADIABra2.5m&p62HORMELFOODSUSA4.6m&p115TONNIESFLEISHD2.5m64PILGRIM’SPRIDEUSA4.2p117KEYSTONEFOODSUSA2.5m&p82ITOHAMFOODSJ3.5m130PERDOGAOBra2.0p&mSource:FoodIntelligence-SergeGuegan.ExcludeTabacco.*Total/m&pNetSale(bn€)WorldMainGroupsinSomeotherSectorsWine&SpiritsFruits&Vegetable*BankingSeafoodIngredients17DIAGEO40PernodRichard65ConstellationBrand70Bacardi137Brown-Forman140Fortune143GalloWinery54Dolefood79ChiquitaBrands101DelMonte112FreshDelMonte123Fyffes124Pomona135Cobana…-Bonduelle

*fresh(&other)18GeneralMills25SaraLee51YamazakiBaking60Bimbo88GeorgeWeston35AssociatedBritishFoods(ABF)132InterstateBakeries144Gruma53Muraha76Nissui87Nichirei127Katokichi-CapVest(Young’s+Findus)-Icelandic(Is)-ThaiUnion-Pescanova-MarineHarvest(N)-Alfesca1Cargill2ADM31Ajinomoto35ABF46Tate&Lyle47Sudzucher61Kerry87Tereos100Danisco122RoyalDSM123CSM148CornProducts153Roquette173GivaudanSource:FoodIntelligence-SergeGuegan.ExcludeTabacco.1999SalesNumberofCountries1.Wal-Mart–USA$193,295,000,000102.Carrefour–France$59,888,000,000223.Ahold–Netherlands$49,000,000,000244.Kroger–USA$49,000,000,00015.Metro–Germany$43,371,000,000216.Target–USA$36,903,000,00017.Albertson’s–USA$36,762,000,00018.Rewe–Germany$34,854,000,00069.Edeka–Germany$28,894,000,000610.ITM–France$24,894,000,0009Source:InstituteforGroceryDistribution(UK),.Note:Salesfiguresreflectallsalesofthecompany,notjustfoodproducts.Thus,therankingsaresomewhatskewed(e.g.Targetwhichhasrelativelysmallfoodsales).However,largeretailersareveryinvolvedinthegrocerybusinessasindicatedabovewithWal-MartandCarrefourbothleadingingrocerysalesaswellasgeneralretailsales.TOP10GLOBALGROCERYRETAILERS:1999TOP30GLOBALGROCERYRETAILERS:20061Wal-Mart(1)USA376,43016AuchanFrance53,6082Carrefour(2)France122,21417WalgreensUSA49,8743MetroGroup(5)Germany87,36018Edeka(9)Germany48,5254TescoUK86,82719CVSUSA46,0925Seven&11Japan79,10120Safeway(USA)USA43,7706Ahold(3)Netherland77,54621LeclercFrance40,4357Kroger(4)USA69,54922ITM(Intermarche)(10)France36,9318SearsUSA64,83323SainburyUK36,0719CostcoUSA64,73724WoolworthsAustralia34,25510Target(6)USA62,58425SuperValuUSA32,27811Rewe(8)Germany56,44826TengemannGermany31,56612CasinoFrance55,29827ColesGroupAustralia30,30813SchwarzGroupGermany55,16028LoblawCanada26,62914AEONJapan55,15729DeihaizeGroupBelgium26,00415AldiGermany54,10430MorrisonsUK24,924TotalTop30(USDmn)1,928,618Source:FoodIntelligence-SergeGuegan.WorldTop30GroceryRetailersbyAreasThefirst30groceryretailers(retailinggeneralists):1500billion€incuding59%infoodand26%ininternationalmarketsAmongthem:10inNorthAmerica,2Japanese,3Austriliansand16Europeansincluding6Germanyand5France:Carrefour(2),Casino(12),Auchan(16),Leclerc(21)andIntermarche(22)USAaccountfor42%inTop30totalsale1298billionUSD.GermanyandFranceaccountrespectivelyfor17.3%and16%.Japanaccountfor7%.AspercentagesofTop30totalsaleTrendofWorldTop30GroceryRetailersLowvalue-addedservicetoconsumer.Focusedmanagementonprocurement(howtoputthebestpressureonsuppliersisthecultural“Omphalos”ofretailer).Lowgrowthandhowprofitabilityindevelopedcountries(particularlyinFrance)Geographicalrefocusingandselectivesearchofnewgrowthto2digitintheemergingcountries(CarrefourleavesPortugal,SwitzerlandandItalyforChina,andsoonRussiaandIndia…).TopretailerstrytosignJVagreementswithbig,attractivebuttouchylocalplayersinChina,IndiaandRussia…Diversificationofproductmix(formats,non-foodproduct,universe,privatelabels…);inFrancetheabilitytocommunicationonTVwillacceleratethenecessarymodernizationofmarketingofFrancedistributors(andperhaps,butlessprobable,reducetonnageflyersandleafletsinthemailboxes)Increasingadaptabilityoftheofferintime(events,availabilityandprice)andinspace(localcompetition)Part3

StrategicProfilesofWorldTop30

inFood&BeverageindustryGlobalLeaders:4StrategicProfilesAgri-FoodDiversifiedSpecialistsBeverageOurCompany,OurBrands,OurCommitments!Upstreamordownstream,Specialization,Internationalization…1Agri-FoodLeaders

1/21CargillUSA70.43ARCHEDANIELSMIDLANDUSA35.17BUNGEBermuda20.98TYSONFOODSUSA20.413LOUISDREYFUSFrance20.023SMITHFIELDFOODSUSA9.526DEANFOODSUSA8.127CHSUSA8.029MCCAINFOODSCanada7.530LACTALISFrance7.5TotalFoodSale(BillionEuros)200.9Growthchampion(8.3%;com-moditiessoaringworldprices,…),butlowprofit(2.7%)BusinessesandClients:dependentonagriculture(positivelyandnegatively)…-Agribusiness&Trading;butnotonconsumers-Meat&Dairy:andalsoonconsumersMeat&DairyGiants:“poorly”consumerorientedwithstilllowaddedvalueproductsandlackofinnovationandcreativity;noglobalbrandsSource:FoodIntelligence-SergeGuegan.1Agri-FoodLeaders

2/2WorldstrategicinfluenceofCargillandADM,lackofinternationalizationoftheothersNegativeGlobalPublicImageofAgribusinessChallenges:-Cargill&ADMareembracing2majoropportunities;“thegrowingdemandforfoodtofeedagrowingworldpopulation…,andthequestforalternativefuelsources…”-Meat&DairyGiants:drameticstrategicchangescomingsoonSource:FoodIntelligence-SergeGuegan.CARGILL70.4ADM35.1BUNGE20.9TYSONF.20.4LOUISD20.0SMITHFIELDF.9.5MCCAINF.7.5CHS8.0DEANF.8.1LACTALIS7.5Totalnetfoodsale(billion€)2DeversifiedLeaders

1/32NETLESwitz.58.35KRAFTFOODSUSA27.46UNILEVERUK/NL21.318GENERALMILLSUSA9.922CONAGRAFOODSUSA9.625SARALEEUSA9.8TotalFoodSale(BillionEuros)134.7Performance:goodnetmargin(8.2%),hardlysatisfactorynetsalesgrowth(5.3%)International:Nestle,Kraft&Unileverareglobal,the3othersarestillvery“american”Businesssegments:closetoconsumers;valueadded,convenient,nutritiousproductsInnovation:large,strong,longtermprogramsbutlackofflexibility,rapiditySource:FoodIntelligence-SergeGuegan.TrustedvalueandglobalBrands:-”Global”(world),large(1billion$),strongpotential,leadership,sustainable,profitable,intunewithglobalimagestrategy-”Local”:Leading&powerful“nationalBrands”whereverit’spossibleGobalImage:socialresponsibility,taste,convenience,nutrition,health&wellnessChalleges:restruturing,focusing(fewer),renovation,innovation,backtoorgangrowth(exernalgrowthisanacessary,notafinality)2DeversifiedLeaders

2/3Source:FoodIntelligence-SergeGuegan.NestleKraftUnileverGeneralMillsConAgraSaraLeeFoodnetsales(billion€)58.327.48.21“Animal“Dairy2“Alternative”“Dairy”0.94.83IceCream4Cereals(Family)(CPW:0.7)0.91.6（+CPW:0.7）5Banking&Milling3.21.03.06Biscuit,Snacks,Desserts1.77Chocolate,Confectionary6.52.98Coffee6.03.82.29Tea3.30.210Water2.00.211OtherNABeverage4.32.012Meals,Entrees5.52.013Cooking,Sides,Condiments4.61.114Meat&Poultry1.02.42.615PetCare7.216Ingredient1.817Agribusiness/Trading1.12DeversifiedLeaders

3/3Source:FoodIntelligence-SergeGuegan.NESTLEUNILEVEREndorsedBrands,onefamilybrandHouseofBrands,individualbrandsBranding:NESTLEandUNILEVERGoodcustomerrelationCoveringhealthwellnessissuesQualityproductsBranding/imageUNUUUNNNNUUNILEVERNESTLEBadGood3SpecialistLeaders

4PEPSICOUSA28.08COCA-COLAUSA19.210MARSUSA15.912DANONEFran14.116CANDBURYSCHWEPPESUK10.924KELLOGGUSA8.7TotalFoodSale(BillionEuros)96.8Highnetmargin(12.7%),good&sustainablegrowth(7.4%)Starsofinternationalization:globalproductsforeverybody,everywhere,atanytime;GlobalBrandsBusinessuniverse:meetingworldconsumer“desires&needs”Anticipating&Innovation:focused“craft”expertise,understandingconsumersSource:FoodIntelligence-SergeGuegan.Marketing:veryclosetoconsumerswithvalueaddedeffectiveproductsdistributedthankstospecificschemes:bottling,technologylicensing,advertising,cashfloodingretailers…Excellence:NumberOneisitsbusinessfields(marketshare,quality,supplychain)TwocrucialchallengeforimprovingImageandensurefuturegrowth:-Nutrition&Health(Danoneisthe“natural”pioneer)-Moreexpertisebutlessdependenceonadominantproductfamilyoriconicbrands:howtowinthebattleof“SoftDeversification”?4Be(er)verageLeaders

1/2

Highnetmargin(9.8%)&growth(7.4%)drivenbymergersandacquistionBeerisbyfarthemostconcentratedbigfood&beveragebusinessintheworldTheTop4areveryinternationalized:A&NAbeverages,water,liquids,by-product,bio-pharmaJVexamples:ABI*/Tsingtao,ABI/Kirin,ABI/Modelo,Sabmillers/ChinaResoucesSnowBreweries,Sabmillers/Castel,russianJVCarlsberg/S&N(BBH:Baltika

…)*AsiaBreweryIncorporated-holdharbinSource:FoodIntelligence-SergeGuegan.11SABMILLERUK14.814INBEVBelg-13.315HEINEKENNL11.817DIAGEOUK10.719ASAHIBREWERIESJap9.920ANHEUSER-BUSHUSA9.921SUNTORYJan9.728KIRIN(MITSUBISHI)Jan7.8TotalFoodSale(BillionEuros)87.94Be(er)verageLeaders

2/2

Global&localstrongBrands:Budweiser,Skol,Corona,Brahma…Heinekenis“theworld’smostvaluableinternationalpremiumbeerbrand”.Diageoaccountsfor55%ofthevolumeoftheworld’stop10premiumspiritsbrands,etc.Brewerersareimprisonedinatoospecific(andalcoholic)productsuniversThreecrucialchalleges:-Chinaisbyfartheworld’slargestandfastestgrowingbeermarket-Nutrition&Health:rapidlydecliningimageofalcoholindevelopedcountries-Moreexpertisebutlessdependenceonadominantproductfamilyoriconicbrand:howtowinthebattleof“SoftUni-Ghettoization”(likeABIwithitsentertainmentbusiness)?Source:FoodIntelligence-SergeGuegan.SABMILLER14.8INBEV13.3HEINEKEN11.8DIAGEO10.7ASAHIB.9.9ANNEUSER-B.9.9KIRIN7.8SUNTORY9.7Total87.9bn€StrategyinFutureConcentrationaggravatedbyGlobalizationwillcontinuetohittraditon/basic/“unhenthy”/internationalproductsector:meat,sugar,fats,…Value-added,convenience,functionalandnutritiousproducts:dairy,non-orlow-alcoholicbeverage,biscuits&snacks,culinary,petfood,childcare,seniors,efforts…Bigmarketintheprocessofglobalizationlikebakery,wine,cheese,meals,dessertsDevelopedregionwithanimportantpopulation:USA,Japan/Koreas,WestEUMajoremergingcountries:costoflabor,agri-searesources,consumersStrategicand/orhigh-techsectorslikeingredients,agribusiness(seeds,pesticides…Source:FoodIntelligence-SergeGuegan.BigPlayersby4StrategicProfilesAgri-Food2bigplayers:Cargill,ADM;concentration,trading,meat,dairyDiversified2bigplayers:Nestle,Kraft;Pepsicowillentertheclub.ThefutureofsomemammothslikeSaraLee,ConAgra,evenUnileverisnotassuredSpecialistsCoca-Colawillkeepcrown.Danone,providedtocontinueitstargetJVpolicy(especialinAsia)andtomergewithanotherplayercouldavoidahighprobableunfriendlybid….TobuyNumicostyleoperatorsisnotenough.PepsicowillwaituntilKraftandNestlehaveeachabigpreyintheirmouth.Be(er)verage3or4giants:Sabmillers,Inbev,DiageoandAnheuser-Bush.Bigasianbrewers-unlessanimporbablemergerbetweenthehistolicenemiesAsahi&Kirin-arenotpresentlyinthebestposition.Source:FoodIntelligence-SergeGuegan.Part4

ClusterofFirmsinAgri-FoodBusinessClusterofFirmsintheGlobalFoodSystem

Understandtheglobalfoodsystem,onemustunderstandtheoperationsofthemajorglobalfirmssuchasCargill,ADM,andConAgra.Cargillhasoperationsin70countriesandisaprivatelyheldfirm.Thechangingnatureofthefoodsystemsuggeststhatrelationshipsamongthefirmsarebecomingmuchmorecomplexandmuchmoreimportant.Thesystemisbecomingmuchmorecomplexstartingwithinvolvementinbiotechnology,extendingthroughproduction,andendingwithhighlyprocessedfood.ThesefirmsaredevelopingavarietyofdifferentallianceswithotherplayersinthesystemAcquisitionisstillacommonmethodofcombiningtwoormorefirms,butmergers,jointventures,partnerships,contracts,andlessformalizedrelationships,suchasagreementsandsideagreements,arealsoutilizedCargill/MonsantoCluster1/3JointVenturesandStrategicAlliancesGENE

(Monsato)DUPONT/PIONEERFertilizer(Cargill)Cargill-SaskatchewanWheatPool

MBN1-2-96PROCESSING

(Cargill)PRODUCER

(FarmersandGrowers)GRAINCOLLECTION

CargillandJointVenturesChmical?SEED

(Monsato)ADM(AGRIGrainMarketing)

FS7-11-94NewEngland’sMillingCompany

FS2-9-98WetCornMillingWheatMillingAnimalFeedDryCornMillingOilseedProcessingExportsContinentalJointVenturesOptimumQualityGrainsMBN8-1-95M.B.ContriPaszMBN1997TEMCOMBN8-1-95CENEXHARVESTSTATECargill/MonsantoCluster2/3PROCESSINGBEEF,PORK,TURKEYANDBROILER(Cargill)PRODUCTIONBEEF,PORK,TURKEYANDBROILER(Cargill)PROCESSING(Cargill)WetCornMillingWheatMillingAnimalFeedDryCornMillingOilseedProcessingIntermountainCanalaCo.(PurchasedbyCargill,Dupontgrantedlicenseandagreedtocontinueresearch)FS12-26-94MitsubishiChemicalCo.(JointVenturewithCargilltoProduceErythritolinNebraskaFS10-20-97DOW(JointVenturewithDOWtoDevelopAgriculturally-BasedPolymers)NVT11-27-97ProGoldLimitedLiabilityFS10-13-97CargillandHoffman–LaRocheFS12-26-94St.LawrenceStarchofOntarioFS1-22-96CSM(JointVenturewithCSMn.v.NetherlandFS1-28-97DegussaChemicalMarketReport10-5-96GNI(GroupdeNegoceInternatioalFS11-10-97DUPONTDOWMITSUBISHICargill/MonsantoCluster3/3Theyhaveacompletefoodchain,buttheyrealizethatveryfewclusterswillsurvivesotheycontinuetoactivelypursueotherfirmsthroughacquisitions,jointventuresorotherarrangementstoincreasetheireconomicpower.ThemostrecentproposedacquisitionisthegrainmerchandizingdivisionofContinentalGrain.Cargill’sinterestinContinentalGrainfollowsseveralmovesbyArcher-DanielsofDecatur,Illinois,toincreaseitsgrain-storagecapacitythroughjointventuresandacquisitionsNovartis/ArcherDanielsMidland(ADM)Cluster1/3JointVenturesandStrategicAlliancesGENE

(Novartis)SturdyGrowHybrid

PRNewswire10-14-98PROCESSING

(ADM)PRODUCER

(FarmersandGrowers)GRAINCOLLECTION

ADMSEED

(Novarits)LandO’LakeConAgra(PortFacilityinWA)

Reuters5-11-98ExportsCountryMark50%ShareFS8-12-96GrowmarkEstablished1985WilsonSeedsPRNewswire10-14-96SubsidiaryUnitedGrainGrowers

JC10-20-98A.C.Toeper(Germany-50%share）

ADMAnnualreportWetCornMillingWheatMillingAnimalFeedDryCornMillingOilseedProcessingMaltingPeanutRiceNovartis/ADMClu