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Neoliberal restructuring, neoregulation, and the Mexican poultry industry

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Abstract

The US poultry industry based on flexible accumulation has been advanced as the model of agro-industrial development for agrifood globalization. Similarly, Mexico has been presented as a noteworthy example of the negative effects of neoliberal restructuring associated with the globalization project. In this paper we use both of these assertions as points of departure to guide an investigation of the case of the restructuring of the Mexican poultry industry. Informed by a commodity systems analysis, archival data and key informant interviews are used to generate an overview of the history of the poultry industry in Mexico. A sociology of agrifood theoretical framework informed by regimes theory is employed to analyze the events of the case. We conclude that neoregulation related to the IMF and NAFTA restructuring in Mexico facilitated the diffusion of the US model of poultry production.

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Notes

  1. The Agrarian Reform Act of 1915 and the Constitution of 1917 created the ejido system of communally-farmed land. Under this arrangement, a group of villagers could petition the government to seize private properties for communal and individual use. The 1992 constitutional amendment withdrew virtually all subsidies and supports for the ejidos.

  2. The authors carried out semi-structured interviews with five experts on the development of the poultry industry in Mexico. These experts included several previous owners of poultry firms, technicians that worked for poultry firms, and representatives of an ejido that worked as aperceros for a major poultry company. The interviews were transcribed verbatim and employed to complement the archival data collected. Pseudonyms (Interviews #1 through #6) are employed to protect the identity of the key informants.

  3. The Winter 2009 special issue of Agriculture and Human Values (Vol. 26, No. 4) titled Symposium on Food Regimes Analysis provides a valuable overview.

  4. The agricultural sector trade was initially excluded from the General Agreement on Tariffs and Trade (GATT) because agriculture unique; it contributed to national food security and political pressure was substantial to protect the declining sector from the full competition of global capitalism.

  5. For example, Pritchard (2009) maintains that food regimes approaches have limited predictive utility and are therefore best used as a tool of hindsight. Dixon (2009) advances a Nutritionalization Rood Regime whereby the bifurcation of class diets has distributed healthy foods to affluent consumers and increasing malnutrition to less affluent peoples. Finally, Campbell (2009) expands on the works of both Friedmann regarding ecological aspects and McMichael regarding a Food from Nowhere position to advance the Food from Somewhere alternative to the corporatization of the agrifood system.

  6. Liberalization of FDI and privatization of grain marketing has consolidated the grain trade in Mexico with firms like Cargill, ADM (and its Mexican partner Maseca), Arancia (American Corn Products), Pilgrim’s Pride, and MINSA (owned by an American investment bank) dominating the sector (Rossett 2006).

  7. Shareholder capitalism refers to the process through which large institutional investors have replaced individual stockholders as the major investors in public corporations.

  8. The term refers to the traditional form of poultry used for both eggs and meat. In the 1950s new genetic lines for meat production differentiated the industry into egg and meat sectors.

  9. The Alliance for Progress was a US-sponsored program created under the Kennedy Administration to provide financial support pro-Western forms of development in Latin America to counter the success of the Cuban Revolution.

  10. Egg smuggling started in the 1960s, followed by the smuggling and dumping of frozen leq quarters in the 1980s, which continues today (Bloomberg 2011).

  11. Mexican law allowed FDI in the private sector as long as Mexican interests controlled at least 51% of the investment.

  12. To help national companies survive the price instability, the government allowed them to postpone tax payments and use those monies to expand their operations (Monterrosa 2009).

  13. Pilgrim’s Pride used junk bonds to buy Goldkist in 2007. In 2008 the financial crisis and the increased price of feedstocks due to the ethanol boom forced Pilgrim’s Pride into bankruptcy.

  14. Wal-Mart entered the Mexican market in 1991 through two joint ventures with the major retailer Cifra, then bought majority interest in Cifra in 1997, and is now the largest retailer in Mexico (Funding Universe 2011). Burger King and Kentucky Fried Chicken also entered the Mexican market in 1991 (Burger King 2011; Chu 2003).

  15. For more information on the Tortilla Protests and the “Without Corn, There is no Country” social movement see Peabody (2011) and Campaña Nacional Sin Maíz, No Hay País (2012).

    .

Abbreviations

DelMarVa:

Delaware, Maryland, Virginia

FDI:

Foreign direct investments

FIRA:

Guarantee Fund for the Promotion of Agriculture, Livestock and Poultry

GATT:

General Agreement on Tariffs and Trade

IMF:

International Monetary Fund

NAFTA:

North Atlanta Free Trade Agreement

TNC:

Transnational corporation

WTO:

World Trade Organization

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Acknowledgments

The authors would like to thank the three anonymous reviewers for their constructive comments which have substantially improved the quality of the paper.

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Authors and Affiliations

  1. Centro de Investigaciones Socioeconomicas, Autonomous University of Coahuila, Unidad Camporredondo Edificio “5”, Coahuila, Saltillo, 25080, Mexico

    Francisco Martinez-Gomez & Gilberto Aboites-Manrique

  2. Department of Sociology, Sam Houston State University, Campus Box 2446, Huntsville, TX, 77341, USA

    Douglas H. Constance

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  1. Francisco Martinez-Gomez
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  2. Gilberto Aboites-Manrique
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  3. Douglas H. Constance
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Correspondence to Douglas H. Constance.

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Martinez-Gomez, F., Aboites-Manrique, G. & Constance, D.H. Neoliberal restructuring, neoregulation, and the Mexican poultry industry. Agric Hum Values 30, 495–510 (2013). https://doi.org/10.1007/s10460-013-9431-0

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