Geographical Review of Japan Vol. 66 (Ser. B), No. 1, 35-51, 1993

Agriculture and Transnational Corporations in the Bajio Region,

Shizue KAMIKIHARA*

Abstract

The impact of transnational corporations on developing countries is particularly evident in agriculture and the food industry that is linked with it. These corporations have access to different markets, for different kinds of products; and to new technologies, incorporating different kinds of inputs, such as machinery, fertilizers and herbicides. They influence the prices of both agricultural products and their inputs, control the supply of investment capital and agricultural infrastructure, and influence government policies about trade and investment. In Mexico the `transnationalization' of agriculture includes both the transformation of the food industry and the impacts on agricultural production areas. The former can be studied at the national scale, on a sector by sector basis, including livestock, cereals and oilseeds, and fruit and vegetables. Each agricultural sector is linked with other industries which process and market the products or provide specialized inputs. The transnationalization of a rural area is examined in a case study of Bajio in the State of . Directly (with their own production) or indirectly (providing markets for local producers), the transnationals have shifted agricultural production away from basic grains such as corn, toward cereals and oilseeds and fruit and vegetables; integrating the region into a national and international food system.

Key words: transnational corporations, livestock complex, cereal and oilseeds complex, fruit and vegetable complex, Bajio Region.

tably has impacts on the rural areas in which it I. INTRODUCTION operates. The transnational corporations are not only Persistent malnutrition of the rural popula involved in agricultural and forest production; tion is a major problem in Mexico. To meet the they also participate in food processing and needs of a rapidly growing population, the gov marketing; and the production of seeds, fertiliz ernment has developed strategies to increase ers, insecticides, and machinery. They are able the agricultural productivity and to improve to attract such necessary services as financial the living conditions of the farmers. One strate credit and technical assistance. They also influ gy is the industrialization of rural areas, that is, ence the national policies regarding guaranteed the establishment of agroindustriesl). Success prices, subsidies, imports and exports of agri ful industrialization integrates farmland, food cultural products, and they determine which processers and consumers; requiring improved agricultural and livestock developments will food processing facilities, locally manufactured receive international investment. agricultural machinery and agrochemical prod The transnational corporations make invest ucts, and an efficient marketing system. In ments in the host country in order to obtain low Mexico this industrialization process requires cost raw materials. The head office in the home the participation of the government, interna country controls the capital investments as tional banks, transnational corporations, and well as the administrative and technological national enterprises as well as farmers. It inevi aspects of the corporation. Transnational cor

* Institute of Geography , University of Mexico, Mexico City, Mexico. 36 S. KAMIKIHARA porations are defined as "...corporations where published sources. The third section of the the interest of the foreign capital reaches a paper focuses on Bajio region where the institu sufficient level so that the foreign ownership tional sources are supplemented by interviews can exert control on the policy and administra with government officials and corporations. In tion of the corporation established in Mexico" this section the emphasis is placed on the trans (FAJNZYLBERand MARTINEZ,1976). formation of rural land use in response to trans The transnational corporations have the ca national initiatives. pacity to transform agricultural production to satisfy their own interests. In Mexico, for exam II. TRANSNATIONAL CORPORATIONS IN ple, they largely control the production of ce MEXICAN AGRICULTURE reals, meat, soybeans, coffee, fruits and vegeta bles, and they play a significant role in the 1. The historical sequence of transnational domestic marketing and distribution systems ization in the main cities. They have also altered pat terns of food consumption. The penetration of the transnational corpora The transnational corporations are not con tions in the agriculture of Latin America coun cerned with the problems of malnutrition. On tries took place in three stages as shown in the contrary, these problems have become Table 1 (ARROYO,RAMA and RELLO,1985; MES worse because of the redirection of land, water, TRIES, 1979; MONTES de OcA and ESCUDERO, labour and agricultural resources away from 1981). In the first stage, beginning in the latter traditional foods. In supporting the activities of part of 19 th century and continuing to the transnational firms the government policies Second World War, the transnational corpora reduce Mexico's capacity to feed itself, while tions began, first, to exploit the land directly by increasing exports to wealthier countries like controlling the production and marketing of the . Mexico, in turn, must pur crops such as cereals, tropical products (sugar chase the grain surplus from the United States cane, coffee, cotton, cacao, rubber, spices); fruit and become increasingly dependent on a coun and livestock. Second, they extended their in try which attempts to monopolize the produc fluence on other agricultural producers through tion, processing and trade of the basic agricul the financing and the processing of raw materi tural products of the world. als. The agricultural products were sold in the This study examines the 'transnationaliza markets of the developed countries. Among the tion' of agriculture in Mexico, as exemplified by corporations established during this period the Bajio region. It describes the spatial, tempo were Swif t-Esmark (1885) in meat production; ral and sectoral on a national scale penetration United Fruit (1899) in banana farming in Cen of transnational corporations into the food in tral America; Castle and Cook (1894) in tropical dustry. Each agricultural sector is linked to a fruit production; Anderson Clayton (1904) in complex network of firms providing inputs to cotton, oil and grain production in South Amer production and to a variety of processing and ica; and Nestle (1905) in milk production. distribution activities. At the local level, the The second stage extends from the end of transnationals transform the land use, the econ World War II to approximately 1970. Transna omy, the way of life of the farmers, and the tional corporations, especially American firms, landscape. The products grown, the methods of continued to identify new opportunities for in production, and the scale of farming are neces vestments to supply the North American mar sarily changed. These changes are observed in kets. But the greater part of the investments the Bajio region in the state of Guanajuato, in were oriented to Latin American countries them the Central Mexican Highland. selves, where there were large internal markets The next section provides an overview of the for foodstuff consumption, plus established pol penetration of transnational corporations into icies to encourage the substitution of imports Mexican agriculture, by sector and by region, and to support industrial and urban develop based on a variety of governmental and other ment. Both conditions are necessary to support Agriculture and Transnational Corporations in Mexico 37

Table 1. The establishment of transnational corporations in Latin America

Source: MESTRIES(1979), MONTESde OCA and ESCUDERO(1981), ARROYO,RAMA and RELLO(1985). the consumption of the manufactured food pro flower production and meat processing, in ducts of the transnational corporations. Mexico and Central America. In this `industrial' During this stage the green revolution trans stage a sequence of new products derived from formed commercial agriculture2), including the agriculture were introduced into both the home activities of transnationals, by improving countries (kiwi fruit, mangoes) and the hosts yields through the addition of better seeds, fer (cigarettes, beer, snacks). tilizers and cultivation techniques. These Transnational investments in agriculture and changes encouraged, first, imports, and subse food products came relatively late to Mexico, in quently, production of agricultural inputs, by the 1930s. Firms such as Anderson Clayton such transnationals as International Harvester, initially engaged in cotton exports to United Massey Ferguson, John Deere (agricultural ma States, and later, in vegetable oils and fodder chinery), and Purina de Mexico and Anderson obtained from cottonseed, but consumed in the Clayton (animal feed). home market. Productos Quaker de Mexico, The transnational corporations also diversi Productos de Maiz and Chiclets Adams were fied their activities into high value added food also established in this period (Table 2). During products such as meat and milk by-products, the 1940s Coca-Cola and Pepsicola (soft drinks), breakfast cereal, fast foods, oils and sauces, and Nestle and Carnation de Mexico (dairy prod candies and snacks; for the large part consumed ucts) and McCormick (condiments) established by upper and middle social classes in the host factories. A number of other firms began to countries. Transnational food producers began produce dairy by-products and instant coffee in to introduce a 'modern' model of consumption the 1950s. into developing countries. The period of the greatest foreign capital in The third stage began in the 1970s, and is vestment in Mexico was between 1960 and characterized by continued re-investment, ex 1970 when the number of . transnational corpo pansion and innovation by the transnationals; rations increased from 60 to 146. At present, 40 in order to enlarge their role within the food percent of them produce animal feeds and food system of the host country, and within world extracts, or process frozen fruits and vegetables markets. The important new investments oc for export. Another 25 percent of the firms curred in soybeans, fruits and vegetables, produce candies, biscuits and snacks, processed 38 S. KAMIKIHARA

Table 2. The establishment of the main transnational corporations in Mexico

Product Code: A: Food D: Dairy Products AC: Agrochemicals C: Cereals M: Agricultural Machinery SD: Drinks F: Animal Food . S ource: American Chamber of Commerce of Mexico (1984), Industridata (1986-1987) , Revista Expansion (1986). and packed meat, dairy products, or popcorn the provision of credit and agricultural sub and potato chips for the domestic market. Most sidies. The transnationals also seek out the of the transnational corporations are from the largest, most productive farmers, who control United States, with a few from Switzerland, the most fertile land, with the best agricultural , England and France. infrastructure, and with access to technical as sistance and credit from the government. 2. The process of transnationalization The importance of the transnational corpora The impact of the transnational corporations tions lies in their ability to determine what on agriculture is called the 'transnationaliza crops are grown, when, and under what condi tion of the foodd system'3). It implies both the tions, and where they will be marketed. They reorganization of the food industry and the im increase the areas used for export crops (vegeta pacts of the corporations on rural areas. Mexico bles, fruits and cotton), of raw material for the is an attractive host country because it has a agricultural industry (oilseeds and wheat) and high level of urbanization and rapid demo crops used in animal feed production (sor graphic and income growth, to support the con ghum). They reduce the areas used for corn and sumption of agroindustrial products. Within other food staples. The mechanisms of control the host country transnational corporations include financing for the export crops whose locate in the most productive and commercial distribution is controlled by brokers, and the agriculture areas. These areas have benefitted production of agricultural inputs, such as from government investments in irrigation in animal feeds, fertilizers, insecticides, improved frastructure and transportation systems, plus seeds and agricultural machinery. Other firms Agriculture and Transnational Corporations in Mexico 39 transform consumer habits in the host country, intensive cultivation of a limited variety of spe to replicate the patterns of the home environ cialized crops. ment. For example, Productos Gerber, Kellogg's 3. The structure of transnational activity de Mexico, Nestle and Carnation de Mexico mo nopolize the production of baby foods, cereals, The activities of transnational corporations and condensed and powdered milk, respective in Mexican agricultural can be best be de ly. Mexico hosts branches of the world's largest scribed as overlapping agrofood complexes, food corporations, such as Unilever, General each one including a number of firms, operating Foods, Kraft Foods, Gervais Danone, Campbell's in several regions, and linked together as sup de Mexico, Productos Del Monte, Heinz, Pet Inc., pliers, producers, processors and distributors. Anderson Clayton and Purina de Mexico. The concept of the complex emphasizes these The transnational corporations exacerbate interrelationships, exemplified by the dairy in land tenure problems. They prefer large hold dustry, which requires specialized breeding ings and they can outbid competing groups. stock and agrochemicals, processed animal They do not need the direct ownership of the feed, dairy processing firms, and a distribution land, because they lease land from smallholders system to serve the Mexican market. Transnati and 'ejidatarios'4), and through their processing onal firms play an important role at each stage. plants they control the distribution network for The discussion below follows the typology of production from large farms. They largely agrofood sectors developed by TRAJTENBERG ignore the rational use of land, and increase the (1977), and is based on data for the 80 largest risk of erosion and salinity of the soil, due to the agrofood corporations in Mexico. It identifies

Figure 1. Agricultural regions of Mexico. 40 S . KAMIKIHARA

Figure 2. Location of the main agricultural transnational corporations in Mexico . S ource: Revista Expansion (1987). three main agrofood complexes: cereal and oil physical characteristics, production systems, seed, livestock, and fruits and vegetables . Each type of crops, and access to market . The two one has includes several subcomplexes, produc northern zones are arid , and cannot support ing different products for different markets . intensive agriculture without irrigation . They Figure 1 provides a regionalization of Mexi have the advantage of access to the U .S. market. can agriculture, based on BAssoLs (1981) . It in The zones to the far south and east are more cludes six zones, which differ widely in their tropical, with higher rainfall , but are isolated Agriculture and Transnational Corporations in Mexico 41

Table 3. Agrofood complexes in Mexico

Source: PAREDESand GALLARDO(1976), RAMA and VIG0RIT0 (1979), Revista Expansion (1987). from both the export and domestic markets. the processing of corn and oats into breakfast The Central region, on the Mexican plateau, is food and snacks; and the processing of wheat more temperate, with varying rainfall and into flour, bread, and pasta. Some flour mills are access to irrigation; and benefits from the in located near the wheat producing areas of the tense centralization of the Mexican economy in Northwest zone, but most of the wheat produc this area. This regional variation is reflected in tion and almost all the advanced processing a strong pattern of specialization in production, occurs in the Central zone near the markets of which has been further intensified by the trans the capital city and nearby regional centres national corporations. Figure 2 and Table 3 (Figure 2a). generalize the structure and location of trans The oilseed subcomplex began with the proc national activity in Mexican agriculture. essing of cottonseed for edible oils in the 1930s, a) The cereal and oilseed complex but in the 1950s soybeans and sorghum were This complex includes two subgroups, linked introduced to provide both oils and animal feed together by the common participation of the for the livestock complex. The area in soybeans leading transnational firms. In Mexico both ce grew from 4,000 to 504,000 hectares between reals and oilseeds are oriented to the domestic 1960 and 1985, while the area in sorghum grew market, because the country is a net importer of from 116,000 to 1,891,000 hectares, especially these products. Corn is the staple food of in the Central and two northern zones. Even so, Mexico; and the main form of consumption, the Mexico imports more than half of its soybean tortilla, is manufactured by small local firms, requirements, using the transnational trading operating within strict price controls. The companies. The activities of Anderson Clayton cereal subcomplex is mainly concerned with and Purina de Mexico link the oilseed and 42 S. KAMIKIHARA animal feed activities with the marketing of c) The fruit and vegetable complex cereals and the production of poultry and dairy This complex includes two different kinds of products in the livestock complex. activity: the production and processing of con b) The livestock complex. ventional fruits and vegetables for the U.S.A., The livestock complex includes both the and increasingly, the Mexican market; and the cattle ranches that are integrated into the beef long-standing production of tropical fruits and production system of the U.S.A. and the more commodities for the international market. The recent dairy, pork and poultry sectors that have former activity is located in irrigated areas in been developed to serve the domestic market. the Northwest, Central and Gulf zones; the They share common links with producers of latter in the Pacific South and Gulf zones agricultural inputs, including agrochemicals (Figure 2a). The transnational corporations su and animal feeds; with meat processors and pervise production, either directly or through distributors (Figure 2b). contract farming, but are primarily concerned The cattle industry began in the 19th century with processing and marketing. in the two northern zones which breed cattle The production of fruits and vegetables has for export to markets in Texas and the south grown with improvements in both transporta western United States. In 1980 cattle pasture tion and processing, especially in packing, pre occupied 57.7 million hectares (74 percent of serving and freezing techniques. Higher in the Mexican total) in these zones, with 8.26 comes and more fast foods, have also increased million cattle, and exported 473,000 head (REIG, the demand. The main market is the U.S.A., for 1982). The transnationals do not breed cattle, fresh products such as tomatoes, cucumbers, but provide breeding stock, pasture seed and onions, melons, and citrus fruit; for processed technical assistance; and purchase and market products, such as strawberry, pineapple, jam, the cattle. They are more closely involved in and tomato puree; and for frozen foods, such as the production of poultry and eggs, and pigs, broccoli, cauliflower, beans, carrots, and corn. which has developed with the growth and inte More recently, transnational firms have begun gration of the domestic market; beginning in to process fruits and vegetables for the Mexican the 1950s and 1970s respectively. The trans market, including baby food (Productos Gerber) nationals provide the animal food inputs from and soups and instant food (Campbell's de the cereal and oilseed complex, and breeding Mexico). Activity oriented to both markets is stock often on a contract basis; and organize concentrated in the Central zone, but the North the processing and marketing of the product. west zone is mostly oriented to the U.S.A. The important poultry and pork production lo market. cations are located in the Central zone near the The tropical products include bananas and animal food inputs and the metropolitan mar coffee. United Brands coordinates banana pro kets. duction in Chiapas in the Pacific South, provid The dairy complex also produces for the do ing technical assistance to farmers, packing and mestic market, and requires both the develop marketing. Most of the coffee production occurs ment of that market plus an efficient distribu in the same zone. Of the total production of tion system. Several transnational firms com 194,000 tons in 1980, 81 percent was exported pete in the activities of breeding dairy cattle, through INMECAFE, the marketing agency of milk production, and the processing of dairy the Mexican government. The transnationals products. The links with animal food inputs processed the remainder into instant coffee for and the metropolitan markets are most evident the domestic market. in the concentration of activity in the Central d) Agricultural inputs. zone, but there is also significant production of As the agrofood complexes become more spe more processed dairy products in the more dis cialized and more dominated by transnational tant cattle raising areas in the Gulf zone and the firms, they consume .more agricultural inputs, two southern zones. Nestle has been active in especially agricultural chemicals and machin these regions since the 1930s. ery (Figure 2a). These firms serve all three corm Agriculture and Transnational Corporations in Mexico 43 plexes and locate close to the agriculture pro dustries producing agricultural inputs or proc duction, or in places accessible to the home essing agricultural products. At the same time country such as the border states of the north it has led to a complex series of changes in rural or Mexico City. areas. This case study describes the impact of In general the significant factors in the loca transnational corporations on the pattern of tion of transnational corporations in Mexico are agricultural production in Bajio region within sources of raw material, potential markets for Guanajuato State. This area of some 8,000 consumption, transportation and communica square kilometres has been the scene of sub tion facilities, and an abundant labour force. stantial investment by transnationals; in fact, The agricultural zones possess these character Bajio has been called a "microcosm of foreign istics in varying amounts. The Northwest and investment" (RAMA, 1978). Northeast zones have access to the export 1. The development of agriculture in Bajio market, which supports the regional tradition region. of cattle ranching; but the introduction of irri gation has permitted the development of cereal, Bajio is a natural region, part of the plateau vegetable and animal food production. system of Central Mexico, occupying the south The Central zone, including the Bajio region, ern half of Guanajuato State. It is linked to the is more diversified. It has traditionally pro northern part of Michoacan and the southwest duced cereals, but fruit and vegetable produc of Queretaro through a series of valleys. The tion for export have recently been introduced. economic development of Bajio took place in The transnational corporations are located in two stages (TENOPALA, 1987). In the colonial the best agricultural lands, those with irriga period, from the second half of 18th century tion and good transportation access. Communi until independence (1821), mining activity stim cation with the main markets of Mexico and the ulated agriculture, livestock production, com U.S.A. is important. They also take advantage mercial development, and a dawning industrial of the abundant and inexpensive labour force of ization. Urban centers emerged, based on these the region. Animal feed and dairy products in activities. Bajio was largely independent from dustries compete for the agricultural space with Mexico City, permitting an autonomous finan the cereal, fruit and vegetable industries. The cial system and an integrated urban system corporations producing agrochemical products with a pattern of complementary specialization are concentrated in Mexico and Morelos States, (CONAPO,1987). from where they distribute fertilizers, insecti Mining generated a large capital investment, cides and herbicides to the whole country. both in the mines and the 'haciendas of metal The Gulf zone is also diversified, but with less reduction'. The mineowners purchased farms transnational activity because of the distance and livestock ranches to provide food for to markets. Fruits and vegetables, coffee, and miners and animals for the mine work. Later dairy products are all important. Because of its these farms and ranches became important ag isolation the Pacific South zone depends on ricultural centers such as Celaya, , Irapu major transnationals to provide access to mar ato and Salamanca, that produced food for the kets. They include Nestle, which encourages mining centers of Guanajuato, Zacatecas and milk production in Chiapas and Tabasco States; San Luis Potosi. Leon and Salvatierra supplied and United Brands, which markets bananas food and other products to the mines of Veta from Chiapas. Madre. With the expansion of the road network between Bajio region and the rest of the coun III. TRANSNATIONAL CORPORATIONS IN try, the agriculture in Bajio was linked to the BAJIO REGION, GUANAJUATO STATE northern and central regions, selling raw mate rials in return for manufacturing products. Still, The transnationalization of Mexican agricul Bajio largely retained its economic independ ture has increased food exports, improved pro ence (MORENOand FLORESCANO,1977). ductivity, and generated employment in in In the 19th century Bajio was one of the most 44 S. KAMIKIHARA

productive agricultural regions of Mexico, due Panamerican Highway (Figure 3). The area of to the fertile black soils, temperate climate, and influence includes nine adjoining municipali the water from the Lerma River, lakes and ties. This region is distinguished by "...the ex springs; supplemented by the investment in ir istence of adequate communication systems, rigation, and the agricultural technology such as highways, railroads and telephone net brought from Spain. works, access to electric and petrochemical The second stage in Bajio's development power, plus a cheap and semi-specialized labour began in the present century with the introduc force, all integrated in a package of fiscal and tion of commercial crops and livestock, the con industrial incentives" (Comite de Planeacion struction of the irrigation district of Alto Rio para el Desarrollo del Estado de Guanajuato, Lerma in 1933 and the establishment of the 1985). Pemex (Mexican Petroleum) oil refinery in Sal 2. Impacts of transnationalization amanca in 1948. The industrialization of the region resulted in the development of transpor a) Changes in agricultural land use tation, communications, services, and com One of the central impacts of the trans merce; and encouraged immigration. The use of nationalization process is a change in the crop machinery and chemical products in agricul pattern due to the competition between crops ture and livestock production increased. The and livestock. In addition, part of the cultivated large farming `haciendas' controlled by the old area is diverted to produce animal feed (PEREZ, landowners were fragmented and shared 1987). Crops such as alfalfa and pasture are among smallholders. These farmers applied used for livestock directly, and fodder grains new technologies and agricultural machinery (sorghum, oats, chick-peas and soybeans) are which increased production, and they bene used indirectly, after processing. To study these fitted from the irrigation district and the con changes further, the main crops in Bajio region struction of wells during the 1950's. In 1968 the are classified into four groups; crops for human irrigation areas were extended with the con consumption include the basic grains, corn and struction of the La Begona project. beans, and vegetables such as onion and green Agriculture production in Bajio had been ori chili. Industrial crops include wheat (flour and ented to the local market, but a high level of baked goods) and barley (beer). The export foreign investment accelerated the trans crops are largely fruits and vegetables, such as nationalization process in agriculture. The best strawberries and tomatoes. Livestock feeds in agricultural lands have been redirected to pro clude alfalfa, sorghum and chick-peas. duce the crops required by the transnational In 1950 the first group, crops for human con corporations. Firms such Anderson Clayton, sumption, dominated the cultivated area, with Purina de Mexico, Kellogg's de Mexico, Produc 80.3 percent of the total (Table 4). Corn was tos Del Monte, Campbell's de Mexico, Nestle and cultivated in 178,000 hectares while livestock others encouraged the intensification of wheat feed covered only 13,549 hectares. The most and sorghum cultivation in order to supply the important change between 1950 and 1970 was flour and animal feed processing industries, and an increase of 143,550 hectares in the amount contracted with farmers for vegetables destined of cropland, due to the opening of new agricul for processing, packing and the frozen food in tural lands and irrigation. This growth permit dustry. ted increased production in each type of crop. In order to study the impacts of trans By 1970, the feed crops for livestock had in nationalization, the Bajio region is defined as creased from 13,5499 to 84,352 hectares. The the `industrial corridor' and its 'area of main crop was sorghum which made up 60 influence' as delimited by the government of percent of this category (50,500 hectares). Guanajuato State. The corridor includes Chick-peas and alfalfa accounted for 10,000 and , Celaya, , Leon, Sal 23,000 hectares, respectively. amanca, Silao and Villagran municipalities, Between 1970 and 1981, in contrast, the area which are located along 160 kilometers of the in crops declined by almost 60,000 hectares, Agriculture and Transnational Corporations in Mexico 45

Figure 3. Bajio region: the study area.

Table 4. The change of cropland in Bajio region, 1950-1981

Source: Mexico, SIC (1950, 1970), Guanajuato, SPP (1982). and the crop composition shifted as well. In These overall changes in cropland did not 1981 the proportion of land dedicated to live occur evenly across the Bajio region. The ac stock crops rose from 22.6 percent to 40.7 per tivities of transnational firms and their produc cent of the total cropland, as the area devoted to ers are concentrated in favourable locations. sorghum increased from 50,500 to 114,500 Thus the northern part of Bajio, including Leon, hectares. For the entire period, 1950-1981, the San Miguel Allende, , and Apaseo El area in corn declined from 178,200 to 135,000 Grande, suffered decreases of cropland of over hectares, while the area in sorghum increased 3,000 hectares per municipality (Figure 4a), from almost zero to 114,500 hectares. The area in while the municpalities of the central part (Sal beans and wheat increased from 3,600 to 6,000 amanca, Irapuato, , and hectares and 30,200 to 39,800 hectares, respec ) increased the cropland by over tively. Overall, the trend in the Bajio region has 10,000 hectares each. The increases largely been to shift the cultivated area to sorghum, reflect the doubling of irrigated land in the barley, wheat and beans; and away from corn. industrial corridor after 1950 to 204,000 hec 46 S. KAMIKIHARA

Figure 4. The change in cropland in Bajio region, 1950-1981. Source:Mexico, SIC (1950), Guanajuato, SPP (1982).

tares in 1980. crops, especially sorghum. This specialization is In most of the region the area in crops for encouraged by national and transnational cor human consumption declined, except for the porations that have built warehouses and facto four municipalities of Salamanca, Juventino ries in the industrial corridor. Rosas, Celaya, and Apaseo El Alto (Figure 4b). The land use changes had two main conse They grow over sixty percent of the corn, beans quences for the rural population. First, agricul and vegetables, and supply the rest of the tural employment declined from 154,677 work region. The land in industrial crops also de ers in 1960 to 82,264 in 1980-about 47 per dined in most municipalities, but increased in cent. The mechanization of agriculture and the Irapuato, Valle de Santiago, Leon, Salamanca change in crops reduced the labour require and San Miguel Allende (Figure 4c). The main ments, and the workers migrated to factories in industrial crop is wheat, grown on irrigated the cities of Leon, Celaya, Irapuato and Sal lands, with a high level of productivity (5.2 tons amanca. Second, the land use changes reduced per hectare, compared to the national average the cropland in corn, and, therefore, in the con of 3.8). sumption of corn within the region. In 1950 the During this period the area devoted to live consumption of corn per capita was 233kg, but stock feed increased throughout the region, and by 1980 it had declined to 156kg. The decrease the specialization also increased. Irapuato, Sal in corn production affects that part of the rural amanca, Valle de Santiago, and Villagran now population which maintains the traditional diet devote more than half the cropland to to feed of corn, beans and other vegetables. Agriculture and Transnational Corporations in Mexico 47 b) The establishment of agroindustries such as Mexico City, Queretaro, and Guadala The shift in crop patterns over time corre jara. The role of the State was to develop irriga sponds to the introduction of transnational cor tion areas and build transportation systems to porations within the region, as these activities link producing areas to market centers or in began to play a larger role within the economy dustrial plants. (TENOPALA,1987). Between 1940 and 1960 the In the 1960s several important transnational transnational corporations developed the fruit corporations were located within Bajio itself: and vegetable complex, producing peaches, Productos Del Monte in Irapuato, Campbell's de quinces, guava, apples and pears; chili, carrots, Mexico in Villagran, and Cigarrera La Moderna peas and beans. These products first supplied in Irapuato. Anderson Clayton built an industri the U. S. A. market, and later, the Mexican al plant for animal feed in nearby Lagos de market. Among the participants were Nestle in Moreno, which processed the sorghum from Lagos de Moreno (1944) and Carnation de Bajio until the same corporation built a new Mexico in Queretaro (1946). Although located plant in Celaya. It was in this period that the outside the region, both corporations drew significant expansion of livestock food crops most of their raw materials from Bajio. An im for animal consumption occurred. After 1970 portant factor of location of these agroindus Purina de Mexico built an animal feed factory tries was the proximity to urban centers with in Salamanca. In an effort to offset the great potential consumers of agricultural products, foreign investment in Bajio, the Mexican gov

Figure 5. Location of transnational corporations in Bajio region, Source:Gomez and Perales(1981). 48 S. KAMIKIHARA ernment decided to modify the agroindustry export crops, and indirectly, for animal con policy in order to support national firms. Sever sumption. The landscape has changed, and so al small agroindustries were initiated, but they has the way of life, as reflected in the patterns could not compete in volume and quality with of employment and food consumption. the transnational corporations. By 1984 Guanajuato State had 1,839 agro IV. CONCLUSIONS industry establishments, including wheat mill ing and baking (95 establishments), meat (72), The industrialization of Mexican agriculture milk (67), animal feed (57), sugar (47), fruits (32) has permitted transnational corporations to and vegetables (15). In the Bajio region the penetrate many different agricultural sectors main transnational corporations produce cere and to create a series of agrofood complexes als, dairy products, fruits and vegetables, tobac that extend beyond agricultural production to co and animal feeds. These corporations are the provision of agricultural inputs and the located in the municipalities where agricultural processing and marketing of products. Trans conditions are most favourable, with irrigated nationals select those agricultural activities farmlands, specialized in industrial crops and that generate the greatest value added between livestock feed, and located along the Panamer the farmer and the market, with the least risk. ican Highway (figure 5) . This highway links The specialized production for the food indus the Bajio region with Queretaro and Mexico try requires substantial capital investment and City to the east, and Guadalajara and Lagos de the import of agricultural inputs such as seeds, Moreno City to the west. Guanajuato State has machinery, and herbicides-increasing Mexico's a road network to the north that communicates dependence on exports. The introduction of ag with Aguascalientes and San Luis Potosi and riculture machinery for large-scale production the U.S.A. displaces the agricultural labour force and ag Most agroindustries locate in the producing gravates rural unemployment. areas in order to avoid high transport costs and At the local level agricultural land and re the loss of production, since fruits and vegeta sources are diverted to the activities of trans bles are perishable and require fast processing. national corporations and reduce the amounts For example, asparagus must be processed available for traditional crops and traditional within two hours after harvesting in order to farmers. The transnational corporations en preserve the taste. The number of firms in fruit courage specialization in production, hence and vegetable processing is greater than those monoculture. Farmers lose the opportunity to in animal feed because the former require less choose among alternative crops and become crop area, and more intense production. It is dependent on the needs of agroindustry. The possible to achieve a high volume of production concentration of transnational resources in the in a great variety of products, as in the case of irrigated areas intensifies regional inequalities Productos Del. Monte and Campbell's de Mexico. and reduces the production of basic grains. The The Purina de Mexico and Anderson Clayton latter must be imported or replaced by other corporations have industrial plants in Sal foods. amanca and Celaya, municipalities with a high Ultimately, agricultural production is diver productivity in sorghum production. ted toward foodstuffs consumed by higher The transnational corporations in Bajio pen income classes in the cities. For example, the etrated a region with a well established pattern milk is processed into expensive dairy prod of agricultural production to supply basic foods ucts, and the basic grains are used to produce to nearby population centers. Thirty years later meat that the rural population cannot afford. the introduction of transnational corporations The transnational corporations use sophisticat had resulted in an absolute and relative decline ed marketing techniques to modify dietary in this activity, coupled with the rapid expan habits and introduce new products. Mexicans sion of agricultural products to serve the agro have adopted many products made with wheat food system-both directly, as industrial and flour and sugar, such as bread, crackers, bis Agriculture and Transnational Corporations in Mexico 49 cuies, and soft drinksthat have low nutritional until the final product... the characteristic of the quality. The transnational corporations create agroindustry is the inter-sectoral linkages, to es marketing systems that make these products tablish connections among production activities, processing and industrial transformation, trans universally available. Even a basic food like port, storage, financing and marketing". (SARH, corn is transformed by processing into snacks 1981) and breakfast cereals. The price is inflated by 2) Mexico has two types of agriculture, each with its the cost of processing and marketing. own characteristics, arising from historical, eco The case study of Bajio region illustrates the nomic and social conditions. Subsistance agricul ture produces crops to be consumed by the impact of these processes at the local level. By farmer and his family; commercial agriculture influencing agricultural production and setting produces crops to be marketed in urban areas or up industrial plants the transnational corpora for export. The latter tends to be located in irri tions have transformed the traditional role of gation areas with a high degree of mechanization the Bajio as the production area of basic granis and capital investment to produce specialized products. for the nearby cities, and made it part of an 3) The food system is the result of interaction international food system. The cereal and oil among the main transnational corporations with seed complex and the fruit and vegetable com the banks for international aid and the national plex compete for the best natural and economic governments. Of lesser importance is the partici resources of the region. pation of national corporations, the agricultural producers and the consumers. There is a "...food Specifically, there has been a substantial shift system when the transnational corporations en in land use away from crops for human con courage the homogenization of consumer habits sumption, such as corn, toward crops for animal and shift them to international standards. The consumption such as sorghum and alfalfa. This transnational corporations's activity comprises has been accompanied by increased spatial the diverse stages of production and marketing necessary to deliver the food to the consumer". variation in land productivity and crop produc (ARROYO,RAMA and RELLO, 1985) tivity, linked to the use of irigated land. And 4) The 'ejidatarios' are collective landholdings cre ultimately it has led to a decline in the con ated during the at beginning sumption of corn, the basic food. All of this has of this century. The purpose of the 'ejido' is to taken place within the context of the rapid improve the use of the land through the encour agement of collective labour. growth in the number of transnational agro food industries that produce for markets out References side the Bajio region. (All in Spanish) In sum, the impact of transnational corpora American Chamber of Commerce of Mexico (1984): tions on Mexican agriculture is complex: ex Directorio de companias americanas que operan en ports are increased, but so are imports and the Mexico. Edic. Florence Strand, Mexico, 312 p. dependence on U.S. corporations. Incomes are ARROYO,G., R. RAMA and F. RELLO(1985): Agricultura increased for some farmers and workers and y alimentos en America Latina, e poder de las trans regions, while others are excluded from the ben nacionales. UNAM, Instituto de Cooperacibn Ibero efits, and many farm workers lose jobs. Agricul americana, Mexico, 267 p. BAssoLS A. (1981): Geografia Economica . de Mexico. tural production is higher, but the output of Trillas, Mexico, 431 p. basic foods declines. And that extensive portion Comite de Planeacion para el Desarrollo del Estado de of the Mexican culture (including nutrition) Guanajuato (1985): Breve andlisis del drew industrial: that centres on food consumption is trans corredor industrial, prioridades estatales, area de in fluencia. Mexico, 52 p. formed by new agrofood products. CONAPO(1987): Delimitacion preliminar del area objeto (Received Oct. 22, 1991) de estudio del subsistema Aguascalientes-Leon- (Accepted Apr. 2, 1993) Guanajuato. Mexico, 125 p. FAJNZYLBURF, and T. MARTINEZ(1976): Las empresas transnacionales, expansion a nivel mundial y pro Notes yeccion en la industria mexicana. ECE, Mexico, 238 p. GOMEZ,M. and. M. PERALES (1981): Empresas trans 1) Agroindustry can be defined as "...an interrelat nacionales y la comercializacibn del sorgo en el ed system that extends from agricultural inputs Bajio. Revista Geografia Agricola, 1, UACH, Mexico, 50 S. KAMIKIHARA

81-96. tura mexicana: el caso de las procesadoras de frutas Guanajuato. Secretaria de Programacibn y Presupu y legumbres. Rev. Investigacion Economica, 143, esto (SPP) (1982): Sector Agropecuario. Guanajuato. UNAM, Mexico, 99-125. Industridata (1986-1987): Empresas grandes. Empre RAMA, R. and R. VIG0RIT0 (1979): Transnacionales en sas medians. Mercametrica Edic., Mexico, 254 p. America Latina. El complejo de frutas y legumbres en MESTRIES, F. (1979): Las agroindustrias trans Mexico. Edit. Nueva Imagen, Mexico, 344 p. nacionales en America Latina. Memoria del Primer REIG, N. (1982) El sistema ganadero-industrial: su es- Seminario Nacional de Sociologla y Desarrolo Rural. tructura y desarrollo:1960/1980. SARH. El desarro I, 1-17. llo agroindustrial y la ganaderia en Mexico. Documen Mexico, Secretaria de Industria y Comercio (SIC) tos de trabajo para el desarrollo agroindustrial, 8, (1950): 111 Censos Agricola-Ganadero y Ejidal. Mexico. Mexico. Revista Expansion (1986): Las 500 empresas mas im Mexico, Secretaria de Industria y Comercio (SIC) portantes. 447, Mexico, 431 p. (1970): V Censos AgrIcola-Ganadero y Ejidal. Mexico. Revista Expansion (1987): 464, Mexico, 373 p. MONTESde OCA,R. and G. EscuDERo (1981): Las empre SARH (1981): El desarrollo agroindustrial y la ec sas transnacionales en la industria alimentaria onomla mexicana. Documentos de trabajo para el des mexicana. Rev. Comercio Exterior, 31(9), Mexico, 986 arrollo agroindustrial, 7, Mexico. 313 p. -1009 . TENOPALA,O. (1987): Organizacion espacial y desarrollo MORENO,A. and E. FLORESCANO(1977): El sector externo agroindustrial en el Bajio, Guanajuato. Tesis, UNAM, y la organizacion espacial y regional de Mexico (1521- Mexico, 182 p. 1910). Univ. Aut. de Publa, Mexico, 127 p. TRAJTENBERG,R. (1977): Un enfoque sectorial para el PEREZ,R. (1987): Agricultura y Ganaderla, competencia estudio de la penetracion de las transnacionales en por el use de la tierra. Edic. de Cultura Popular- America Latina. ILET, Mexico, 30 p. Instituto de Investigaciones Economicas, UNAM, VIG0RIT0, R. and B. SUAREZ(1981): Capital extranjero y Mexico, 285 p. complejos agroalimentarios en America Latina: histo RAMA, R. (1978): Empresas transnacionales y agricul ria y estrategias. ILET, Mexico, 55 p. Agriculture and Transnational Corporations in Mexico 51

メキ シコバ ヒオ地方 における農牧業 と多国籍企業

シズェ カ ミキハ ラ(上 木原 静江)*

メ キ シ コに お け る国 民 経 済 の中 で 農 業 と牧 畜 業 は主要 が主 要 な経 済 活 動 で あ っ た。 しか し, 1950年 頃 の多 国 な経 済 活 動 で あ る。1940年 代 か ら農 業 の近 代 化 が 農 地 籍 企 業 の進 出 と と も に,作 物 と生 産 方 法 が変 化 し,土 地 の拡 大 と改良,農 産 加 工 場 の設 立 な ど を通 じて始 め られ 利 用 は よ り集約 的 に な っ た。実 際 に多 国 籍 企 業 は2種 類 た。 この過 程 に お い て,多 国 籍 企 業 は農 牧 業 生 産 を 集 約 の農 業 経 済 地 域 を 形 成 して きた 。第1の タイ プ は多 国 籍 化 さ せ,作 物 の変 化 を もた ら した。 多 国 籍 企 業 は種 子 ・ 企 業 に よ る野 菜 ・果物 生 産 地 域 の形 成 で あ る。 こ こで 農 薬 ・農業 機 械 の生 産 も行 い,農 業 の全 生 産 過 程 を 支 配 は,多 国 籍 企 業 は生 産 過 程 の す べ て を 支配 して い た。 第 して い る。 2の タ イ プ は多 国 籍 企 業 が 飼料 の生 産 を行 わ せ,そ の 飼 本 研 究 は,メ キ シ コの農 牧 業 に お け る多 国 籍 企 業 の 浸 料 を基 盤 に養 鶏,養 豚 生 産 を 行 う肉生 産地 域 の形 成 で あ 透 を そ の農 業 と農村 へ の影 響 か ら明 らか に しよ う とす る る。 バ ヒオ地 方 はか っ て 主 要 な トウモ ロ コ シ ・インゲ ン もの で あ る。 豆 生 産 地 域 で あ っ た。 しか し,多 国 籍 企業 の進 出 と と も メ キ シ コ にお け る 多 国 籍 企 業 の 多 くは1950年 か ら に ソ ル ゴ ー ・大豆 が 導 入 さ れ,飼 料 生 産 地 域 に変 化 し 1970年 に設 立 され た もの で あ る。 主 要 な企 業 は飼 料 や た。2つ の タイ プ と も,多 国 籍 企 業 は 資本 を蓄 積 した農 酪 農 製 品 の生 産 お よ び野 菜 ・果物 の加 工 な ど に関 す る も 民 と契約 栽 培 して,農 産 物 の 量 ・品質 ・供給 の時 期 を 確 の で あ り,メ キ シ コ中央 部 グ ア ナ フ ア ト州バ ヒオ地 方 は 実 な もの と して い る。 そ の代 表 的 な地 域 で あ る。 バ ヒオ地 方 は昔 か ら農業 生 産

* メキ シ コ ・メキ シ コ市 ,メ キ シ コ国立 大 学,地 理 学 研 究 所