Financialization, distance and global food politics

Clapp, Jennifer

doi:10.1080/03066150.2013.875536

Cited by 329 publications

(257 citation statements)

References 40 publications

(51 reference statements)

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“…Future exchanges spread to various countries and trading in agriculture futures became common (Cronon 1991). Some of the exchanges, such as the Chicago Mercantile Exchange Group, have been regulated since the 1900s in order to control the possible manipulation of markets by taking large positions (Clapp 2014). This is what is now termed ''market speculation'', and will be discussed below.…”

Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

“…The objective was to control sudden price shifts by preventing excessive speculation from non-commercial traders (Clapp and Helleiner 2012). In 1974 the Commodity Futures Trading Commission (CFTC) was established as an important tool to regulate futures markets, such as through position limits, in the US (Clapp 2014).…”

Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

“…For example, the US Commodity Exchange Act, implemented in 1936, was implemented to manage speculation by non-commercial traders by controlling the amount of futures contracts they were allowed to hold at one time (Clapp 2014). The objective was to control sudden price shifts by preventing excessive speculation from non-commercial traders (Clapp and Helleiner 2012).…”

Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

“…Starting in the 18th century, futures exchanges for agricultural commodities were established in London to allow farmers and grain traders to buy and sell commodities for a future delivery (Clapp 2014). This provided a form of risk management in a sector vulnerable to shifts in supply and demand, for example due to weather fluctuations.…”

Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

“…Isakson (2014) has likewise argued that much of the large traders' recent profits is connected to ''their unique access to food suppliers'' and ''is also the source of information regarding global food stocks, giving them an advantage when hedging and speculating on price movements''. Clapp (2014) furthers this argument with reference to all of the large agro-commodity traders:…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Cargill’s corporate growth in times of crises: how agro-commodity traders are increasing profits in the midst of volatility

Salerno

2016

Agric Hum Values

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This paper proposes two interrelated arguments: first, it is argued that agro-commodity traders are uniquely placed at the crossroads of agricultural trade to benefit from agricultural commodity speculation; and second, that the networks constituting their operations are central to their hedging activities. The case of Cargill-the largest privately owned company in the United States and one of the largest agricultural traders in the world-is used to support this argument by unpacking its operations, structure, and hedging strategies. In order to connect the operations of Cargill to its speculating strategies, this paper first traces how agriculture and finance have become increasingly intertwined leading to heightened agricultural commodity speculation. Second, Cargill will be positioned within this process by analyzing how it has financialized its own strategies and its Corporate Platform. Third, Black River Asset Management, Cargill's private equity arm, will be analyzed to show how it uses the information moving through Cargill's Platform to engage in hedging and/or speculation.

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Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

Section: The Financialization Of Agriculture and Speculation In Agricmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Cargill’s corporate growth in times of crises: how agro-commodity traders are increasing profits in the midst of volatility

Salerno

2016

Agric Hum Values

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Traders as sustainability governance actors in global food supply chains: A research agenda

Grabs

Carodenuto

2021

Bus Strat Env

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Corporate actors are rapidly gaining ground as nontraditional forms of authority that shape sustainability governance efforts in global food supply chains. This paper highlights the critical, but underresearched role of traders—companies whose core business lies in the movement and exchange of agricultural commodities between producers and manufacturers—in linking corporate sustainability ambitions to on‐the‐ground impacts. Drawing on a systematic analysis of the major transnational corporations trading cocoa, coffee, and palm oil, we present advantages and potential pitfalls of relying on traders as implementers of sustainability governance and outline a future research agenda that focuses on producer‐level impacts, changes in supply chain organization and power dynamics, and traders' interactions with state and other nonstate actors. At the intersection of supply chain management, political economy, geography, and global governance, research on traders as key sustainability governance actors also provides novel opportunities for interdisciplinary work and stakeholder engagement.

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Dynamics of the North–South Capital Flows or Rise of South–South Land Deals? Features of Land Acquisition in Ethiopia

et al. 2017

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Transnational land deals are among the most contested but inadequately understood topics. In this paper, we focus on the features of large‐scale transnational land deals (LSTLDs) in the Global South through an examination of Ethiopia. We apply a mixed method (qualitative and quantitative) research design.Results indicate that in 2005–2015, the government leased nearly 2·47 million ha of the country's approximate total 114 million ha area and offered 11·5 million ha of cultivable land to domestic and transnational investors. We explore the prevalence of LSTLDs deals by companies of the Global South, particularly entrepreneurs from India. Ethiopia's example validates emerging arguments on the rise of South–South investment deals rather than the established explanation of North–South capital flows. However, 75% of the land deals show poor performance. The study shows that LSTLDs have contributed to raising domestic agricultural production but have resulted in non‐performing loans of the banks of the host country. In sum, the land deals have resulted in financial grabbing, where Ethiopian banks end up with non‐performing loans and then must chase investors to settle the approximate €791 million in loans that investors borrowed for their projects. Copyright © 2017 John Wiley & Sons, Ltd.

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Financialization, distance and global food politics

Cited by 329 publications

References 40 publications

Cargill’s corporate growth in times of crises: how agro-commodity traders are increasing profits in the midst of volatility

Cargill’s corporate growth in times of crises: how agro-commodity traders are increasing profits in the midst of volatility

Traders as sustainability governance actors in global food supply chains: A research agenda

Dynamics of the North–South Capital Flows or Rise of South–South Land Deals? Features of Land Acquisition in Ethiopia

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