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The rise of financial investment and common ownership in global agrifood firms

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  • Jennifer Clapp

Abstract

Financial investment in the food and agriculture sector has grown in recent decades, including investment in equity-related funds that invest in or track the performance of a range of publicly traded transnational agrifood companies. At their height in recent years, equity-related investment funds accounted for around one third of financial investment in the sector. Despite their significance, investment in the agrifood sector via these types of investment funds has received much less academic and policy attention than other types of financial investment, such as farmland acquisition and commodity speculation. This paper examines the rise of equity-related investment in the agricultural sector and analyzes its implications for the food system. It provides an overview and analysis of the available data on these investment vehicles, including their holdings (i.e. the companies in which they invest) and ownership (i.e. the investors who own shares in those companies). This data shows a rise in common ownership of large agrifood firms by large asset management companies. The paper makes the case that this new pattern of investment in agrifood firms by large asset management firms has the potential to contribute to the already concentrated market power in the agrifood system.

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  • Jennifer Clapp, 2019. "The rise of financial investment and common ownership in global agrifood firms," Review of International Political Economy, Taylor & Francis Journals, vol. 26(4), pages 604-629, July.
    • Handle: RePEc:taf:rripxx:v:26:y:2019:i:4:p:604-629
    DOI: 10.1080/09692290.2019.1597755
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    Cited by:

    1. Iotti, Mattia, 2023. "Financial evaluation and credit access of agricultural firms," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 25(2), October.
    2. Baines, Joseph & Hager, Sandy Brian, 2021. "Commodity Traders in a Storm: Financialization, Corporate Power and Ecological Crisis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Latest Ar.
    3. Vives, Xavier & Banal-Estanol, Albert & Seldeslachts, Jo, 2022. "Ownership Diversification and Product Market Pricing Incentives," CEPR Discussion Papers 17686, C.E.P.R. Discussion Papers.
    4. Sophie Kelmenson, 2023. "Between the farm and the fork: job quality in sustainable food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(1), pages 317-358, March.
    5. Joeva Sean Rock & Matthew A. Schnurr & Ann Kingiri & Dominic Glover & Glenn Davis Stone & Adrian Ely & Klara Fischer, 2023. "Beyond the Genome: Genetically Modified Crops in Africa and the Implications for Genome Editing," Development and Change, International Institute of Social Studies, vol. 54(1), pages 117-142, January.
    6. Jaime Martínez-Valderrama & Jorge Olcina & Gonzalo Delacámara & Emilio Guirado & Fernando T. Maestre, 2023. "Complex Policy Mixes are Needed to Cope with Agricultural Water Demands Under Climate Change," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(6), pages 2805-2834, May.
    7. Thais González-Torres & José-Luis Rodríguez-Sánchez & Eva Pelechano-Barahona & Fernando E. García-Muiña, 2020. "A Systematic Review of Research on Sustainability in Mergers and Acquisitions," Sustainability, MDPI, vol. 12(2), pages 1-18, January.
    8. Evert Los & Cornelis Gardebroek & Ruud Huirne, 2021. "Explaining output price heterogeneity in Dutch horticulture," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 891-914, October.
    9. Oberlack, Christoph & Blare, Trent & Zambrino, Luca & Bruelisauer, Samuel & Solar, Jimena & Villar, Gesabel & Thomas, Evert & Ramírez, Marleni, 2023. "With and beyond sustainability certification: Exploring inclusive business and solidarity economy strategies in Peru and Switzerland," World Development, Elsevier, vol. 165(C).
    10. Tanita Northcott & Mark Lawrence & Christine Parker & Phillip Baker, 2023. "Ecological regulation for healthy and sustainable food systems: responding to the global rise of ultra-processed foods," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(3), pages 1333-1358, September.
    11. Loka Ashwood & Andy Pilny & John Canfield & Mariyam Jamila & Ryan Thomson, 2022. "From Big Ag to Big Finance: a market network approach to power in agriculture," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 39(4), pages 1421-1434, December.
    12. Kate J. Neville, 2020. "Shadows of Divestment: The Complications of Diverting Fossil Fuel Finance," Global Environmental Politics, MIT Press, vol. 20(2), pages 3-11, May.
    13. Mattia Iotti, 2023. "Financial evaluation and credit access of agricultural firms," Economia agro-alimentare, FrancoAngeli Editore, vol. 25(2), pages 31-67.

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