Agriculture Reference
In-Depth Information
The food industry has the economic power to dictate not just what we eat but also public policy on a
range of issues—from trade and agriculture to nutrition and health. It has extended its political and eco-
nomic power through a web of business, social, and organizational connections. Corporations hide behind
these institutions, sometimes speaking with one voice to cajole, threaten, and unduly influence Congress,
the regulatory agencies, and international institutions. The funding they provide to academic institutions
guides and defines the scientific research that is the basis for most regulatory decisions made regarding
food.
Of these relationships, especially noteworthy are the interlocking directorates of the most powerful
companies. The top twenty food companies have 436 shared board members playing decision-making roles
in multiple venues. A recent study of global corporate control noted that firms exert control over other
companies via a web of direct and indirect ownership relations that extend throughout the world.
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Boards bring together individuals with a common economic interest in the corporation, but each indi-
vidual member has his or her own specific concerns and agendas as well. Boards serve not only as places
where the group collectively makes decisions for the one corporation, but also as venues for building the
relationships necessary for brokering future mergers and acquisitions, making strategic alliances, finding
new employment, and networking for a range of other opportunities. High-level executives from banking
and financial services often sit on the boards of food-related companies, and vice versa. These relation-
ships are beneficial, because the financial services industry plays a significant role in the food industry.
The agribusiness, food-processing, and grocery industries rely on the services of Wall Street banks, fin-
anciers, hedge funds, and private equity to pursue mergers, sell corporate bonds, provide strategic business
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