Global and Local Drivers in the Globalization of Food Industry
: The Case of Milk Powder
/ Debora Di Dio
This paper aims at presenting a comparative discussion of the interaction between environmental, cultural, economic, social, and political conditions of local and global actors, which are responsible for limiting or encouraging the globalization of milk powder. By contesting the statement made by Morgan et al. (2006) that globalization of the food sector is uniquely constrained by nature and culture, the research evidence presented in this paper will argue that other factors play a role and are equally, if not more important, for the globalization of milk powder. Two aspects of the supply chain, production and consumption are considered to show that economic development, social issues, international institutions, nation states and eventually NGOs – all have to some extent played a role in the globalization of milk powder. The case study of Arla Foods, one of the largest European MNCs, demonstrates in what way the production, global trade and distribution of milk powder along the EU-developing countries supply chain have been backed up by the EU subsidies to agriculture, and by nation states through specific policies that encourage imports.