Joseph Baines

Food Price Inflation as Redistribution: Towards a New Analysis of Corporate Power in the World Food System

This paper outlines the contours of a new research agenda for the analysis of food price crises. By weaving together a detailed quantitative examination of changes in corporate profit shares with a qualitative appraisal of the restructuring in business control over the organisation of society and nature, the paper points to the rapid ascendance of a new power configuration in the global political economy of food: the Agro-Trader nexus. The agribusiness and grain trader firms that belong to the Agro-Trader nexus have not been mere ‘price takers’, instead they have actively contributed to the inflationary restructuring of the world food system by championing and facilitating the rapid expansion of the first-generation biofuels sector. As a key driver of agricultural commodity price rises, the biofuels boom has raised the Agro-Trader nexuss differential profits and it has at the same time deepened global hunger. These findings suggest that food price inflation is a mechanism of redistribution.

Fuel, feed and the corporate restructuring of the food regime

The agrofuel boom has brought about some of the most significant transformations in the world food system in recent decades. A rich and diverse body of agrarian political economy research has emerged that elucidates the conflicts and redistributional shifts engendered by these transformations. However, less attention has been given to differences within agri-food capital. This paper contributes to the existing literature on agrofuels, by showing how one cluster of agri-food corporations and farmers within the US has benefited from soaring ethanol production at the expense of another cluster. More specifically, I delineate and chart the pecuniary trajectories of two corporate-led distributional coalitions that have vied over the course taken by the US ethanol sector: the ‘Agro-Trader nexus’ and the ‘Animal Processor nexus’. My main finding is that the US ethanol boom has been a vector of redistribution: increasing the earnings of the Agro-Trader nexus and corn growers while reducing the earnings of the Animal Processor nexus and livestock farmers. This finding points to the limits and contradictions of agrofuels capitalism and the acute tensions that exist at the heart of the corporate food regime.

Accumulating through food crisis? Farmers, commodity traders and the distributional politics of financialization

ABSTRACT This paper considers the domestic and international ramifications of financialization and grain price instability in the US agri-food sector. It finds that during the recent period of high and volatile prices, the average income of large-scale farms reached the earnings threshold of the top percentile of US households, and agricultural commodity traders markedly outperformed other corporate groups. In contrast, small-scale farms, particularly those involved in cattle and wheat production, have struggled to manage the uncertainty brought by price tumult. The paper goes on to examine the role that these uneven distributional dynamics play in debates around how hedging and speculation should be defined and regulated in the wake of the food crisis of 2007–08. It shows that a coalition of small-scale farmers has actively pushed for a far-reaching definition of speculation and concomitantly wide-ranging curbs on what they deem to be speculative activity. Conversely, the major commodity traders and a plurality of organizations representing large-scale grain producers have called for a narrower interpretation of speculation which leaves the extant regulatory regime largely in place. With these insights, I suggest that financialization and associated price volatility tend to reinforce inequality in rural America while possibly exacerbating social instability and hardship abroad.

Encumbered Behemoth: Wal-Mart, Differential Accumulation and International Retail Restructuring

This chapter draws on, and develops, some aspects of the capital as power framework so as to provide the first clear quantitative explication of the company’s power trajectory to date. After rapid growth in the first four decades of its existence, the power of Wal-Mart appears to be flat-lining relative to dominant capital as a whole. The major problems for Wal-Mart lie in the fact that its green-field growth is running into barriers, while its cost cutting measures seem to be approaching a floor. The chapter contends that these problems are in part born out of resistance that Wal-Mart is experiencing at multiple social scales.