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. (shrink)

The analysis of the financialization of food and farming has tended to focus on issues such as the impact on the productive and input sectors of the food chain, including the role of asset management companies, private equity consortia and other financial institutions in acquiring and managing farmland. However, processes of financialization impact along the whole agri-food supply chain, including the retail and food service sectors. This paper analyses the take-over by a private equity company of Somerfield, one of the (...) UK’s leading supermarket chains, and the impact the subsequent restructuring had on the management and organization of the retailer’s operations. In doing so, the paper not only extends the analysis of the effects of financialization on the food system, but also raises questions about the extent to which the supermarkets are the dominant actors in the establishment and management of agri-food supply chains. (shrink)

Self-regulation has become a mantra for both governments and private industry in the neoliberal era. Yet, problems remain in terms of supermarket accountability and control. Governments everywhere appear to be under increasing pressure to move beyond the self-regulatory model by enacting legislation which better monitors and polices supermarket-supplier relations. In most cases, the appointment of an oversight authority—known variously as an ombudsman, watchdog, or adjudicator—with the power to set standards and apply sanctions, and to whom suppliers can appeal in cases (...) of perceived abuse, has been advocated. This paper investigates the role of watchdogs and ombudsmen as potential governance mechanisms for overseeing supermarket-supplier relations and explores, in detail, escalating pressure for their appointment within the UK and Australia over the last 20 years. The pursuit of regulatory frameworks to monitor, and adjudicate on, problems arising out of changing power relationships along agri-food supply chains in these two countries has been met with strong resistance from supermarkets; however, after 20 years of debate, it appears that these governments may be on the path towards legislating for an independent body to handle disputes. This paper critically examines ‘self-regulation’ and concludes that watchdogs and ombudsmen are only a partial solution, at best, to the problems that are arising from the neoliberal settings which govern relations between food suppliers and food retailers. (shrink)

Growing supermarket dominance and the expansion of own-label market share in Australia has put considerable pressure on agri-food manufacturers, and the recent movement of a number of manufacturing operations off-shore has attracted widespread attention. This paper examines the pursuit of an international manufacturing base by SPC Ardmona, one of Australia’s major fruit and vegetable processors, with a focus on strategic alliances formed with Siam Foods in Thailand and Rhodes Food Group in South Africa/Swaziland. Strategic horizontal alliances have become increasingly important (...) for manufacturers seeking to counter retailer dominance, yet have received little attention in the agri-food literature. The two alliances examined in this paper illustrate the profound importance of prevailing societal and institutional environments in which production networks ‘touch-down’, and their influence on firm-level dynamics of trust, motivation, corporate values, and strategic objectives. Horizontal alliances can offer a promising alternative to cut-throat competition and a ‘race- to-the-bottom’ between agri-food manufacturers. However, with own-label sourcing strategies deepening competition between geographically-disparate manufacturers, identifying compatible alliance partners is likely to become an increasingly greater challenge. (shrink)