World Investment Report 2009: Transnational Corporations - Unctad

CHAPTER III 117
Table III.9. Inward FDI flows and stock in agriculture,
selected countries, various years
(Millions of dollars)
Host economy
Flows,
average
2005–2007
Host economy
Stock, 2007
or latest year
available
China 747.0 China 6 156.2a Malaysia 671.2 United States 2 561.0
Brazil 420.9 Viet Nam 1 753.1
Russian Federation 187.7 Canada 1 497.8
Indonesia 119.6 Indonesia 1 001.4a Cambodia 87.0 Russian Federation 953.0
United Kingdom 84.7 Chile 949.7
Poland 73.9 Italy 624.3
Papua New Guinea 71.1 Australia 624.2
Romania 67.7 France 616.4
France 61.5 Ukraine 557.6
Ukraine 57.3 Hungary 493.9
Viet Nam 51.4 United Kingdom 490.8
Peru 51.0 Poland 446.3
Chile 49.5 Romania 412.8
United Republic of
Tanzania
40.5 Korea, Republic of 400.5
Honduras 36.2 Brazil 383.6
Bulgaria 34.6 Cambodia 318.7
Ecuador 31.8 Turkey 289.0
Costa Rica 31.4
United Republic of
Tanzania
252.4
Source: UNCTAD, based on annex table A.III.3.
a Based on approval data.
Note: Data were available for a selected number of countries only
(box III.5). Moreover, certain countries reported only FDI
flows or FDI stock in agriculture.
positions in 2007 (figure III.13). There were also
six developing countries on the list – with China in
third position and the Republic of Korea seventh –
and one economy in transition (Croatia). Developed
countries also continue to be the main home-countries
of acquirers in cross-border M&As in agriculture, but
since 2000, developing countries, mainly from South,
East and South-East Asia as well as Latin America
and the Caribbean, have been gaining in importance
as sources of purchases. 32 In 2008, developing
economies became major sources of cross-border
take-overs, with Latin American firms this time taking
the lead. 33
2. Contract farming
As discussed in section C, contract farming
is a significant alternative to FDI in terms of TNC
participation in agriculture, and there are some
indications that it is growing (Da Silva, 2005). The term
contract farming covers a variety of arrangements (box
III.7), differing by type of contractor, type of product,
intensity of coordination (usually vertical) between
farmer and TNC, and number of key stakeholders
involved. Five different basic models of contract
farming can be distinguished: centralized, “nucleus
estate”, multipartite, informal and intermediary (box
III.7).
TNCs in downstream stages of value chains,
such as food manufacturers and retail TNCs, secure
Figure III.12. Main agricultural produce targeted by TNCs in foreign locations, by subregion, up to 2009
Cotton
Dairy
Floriculture
Fruits
Based on M&A data:
1987-May 2009, total value everything
above $50 million.
Source: UNCTAD, based on the sources cited above.
Maize
Meat and
poultry
Oil crops
Soya beans
Vegetables
Rice
Based on additional sources:
Sugarcane
Wheat and
grain
Other sources include information on recent land deals above $50 miiion (IFPRI
data and UNCTAD data; UNCTAD TNC data and UNCTAD commodity case studies.