The Globalization of the Food Industry/Brazilian Firms Acquire Major U.S.-Based Food Producers

Global food production since the 1990s has experienced profound changes as thousands of previously low-yield or untenable acres, particularly in Brazil, Ukraine and Russia, are now producing larger harvests. In Brazil, for example, farmers and ranchers have learned to affordably and simply treat tropical soil with lime and phosphorus, thereby increasing yield by as much as four to five times. Brazil has evolved into a major global exporter of beef, coffee, orange juice, sugar and soybeans. (Its neighbor Argentina has enjoyed great success in food exports, including beef and its highly regarded wines.)

Meanwhile, processed and packaged food industries have become much more globalized, thanks to rising exports from factories in China, Thailand and elsewhere, as well as cross-border investments in food production by multinational firms. This trend led to serious problems with some foods exported by Chinese factories. For example, tainted pet food led to the deaths of some pets. The Chinese government has put a renewed focus on food safety and quality. In 2008, the government convicted food company executives involved in very serious tainted milk scandals and sentenced a few with death penalties. Yum! Brands, Inc., an American firm that owns thousands of fast food restaurants around the world including KFC, announced plans to stop using more than 1,000 slaughterhouses in China after a scare relating to contaminated chicken in early 2013. More scandal followed in 2014 involving spoiled meat supplied to McDonald’s and Yum! Brands, prompting new government regulation of food manufacturers and retailers.

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The Globalization of the Food Industry/Brazilian Firms Acquire Major U.S.-Based Food Producers, Business and Industry Trends Analysis

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