Globalization, Inc.
Concentration
in Corporate Power:
The Unmentioned Agenda
RAFI Communique i.71 Jul/Aug01
Issue: Concentration in corporate power is the defining feature of today's global economy. The "life sciences" industry is converging into new corporate structures that have profound implications for every aspect of commercial food, agriculture, and health.
- The top 10 pharmaceutical companies control an estimated 48% of the $317 billion world market.
- The top 10 veterinary pharmaceutical companies control 60% of the $13.6 billion world market.
- The top 10 seed firms control 30% of the $24.4 billion commercial seed market.
- One company's genetically modified (GM) seed technology (Monsanto now owned by Pharmacia) accounted for 94% of the total area sown to GM crops in 2000.
- The top 10 agrochemical corporations control 84% of the US$30 billion agrochemical market.
- The 32 leading grocery retailers account for 34% of the total global food retail market, estimated at $2.8 trillion. The top 10 grocery retailers account for $513.7 billion or 54% of total sales for the top 32 retailers.
Impact: Corporate hegemony is overwhelming governments and subverting national sovereignty. When governments become subservient to corporations instead of citizens, democracy is undermined, diversity is destroyed, and human rights are jeopardized. The trend in corporate consolidation is mirrored by growing disparities between rich and poor, both within and between OECD nations and the South.
Players: This issue of the ETC Communiqué provides a brief, sector-by-sector analysis of the leading companies involved in the closely related fields of pharmaceuticals, biotechnology, genomics, seeds, agrochemicals, food & beverage processing, and mega-grocery retailers.
Policy: Heads of State convening at the World Food Summit Five Years Later, 5-9 November, cannot address world food security without addressing the impact of corporate hegemony. The creation of a new United Nations Centre on Commerce and Technology, with an expanded mandate to monitor and analyze multi- technology and multi-sectoral mergers and alliances, is long overdue. The "unfinished agenda" for sustainable food security that the International Food Policy Research Institute will present in Bonn, 4-6 September, fails to include the "unmentioned agenda:" ownership, control and consolidation with respect to food security.
Top 10 Pharmaceutical Companies
Pharma Sales % Share of
(US) Millions Pharma Profit World
Company 1999/2000 Margin - 2000 Market
1. Glaxo + Smith Kline Beecham $22,209.5 Glaxo 30.9% 7.0 SKB 25.1%
2. Pfizer $20,500 N/A 6.5
3. Merck & Co $17,481.6 26.4% 5.5
(includes Warner Lambert)
4. AstraZeneca $14,834 18.3% 4.7
5. Aventis $14,808.5 pro 17.6% 4.7
forma
6. Bristol-Myers Squibb $14,309 28.1% 4.5
7. Novartis $12,697.7 28.5% 4.0
8. Pharmacia $11,177 19.6% 3.5
(includes Monsanto & Upjohn)
9. Hoffman-La Roche $10,973.8 44.2% 3.5
10. Johnson & Johnson $10,694 33.6% 3.4
Source: ETC Group; based on data provided by Scrip's Pharmaceutical League Table, 2000
Global Ranking by Sector based on 2000 sales:
agrochemicals, seeds & pharma
GENE GIANT Agrochemical Seed Pharmaceutical
Revenues Revenues Revenues
Ranking Ranking Ranking
Syngenta 1 3 4 AstraZeneca
7 Novartis
Pharmacia 2 2 8
(Monsanto)
Aventis 3 10 5
for sale
BASF 4 Not ranked Sold pharma business
for $6.9 billion
Dupont 5 1
(Pioneer) Sold pharma business
for $7.8 billion 8/01
Bayer 6 Not ranked 18 for sale
Dow 7 7 Not Ranked
2000 Sales (US $million): agrochemicals, seeds & pharma
GENE GIANT Agrochem Seed Pharmaceutical
Revenues Revenues Revenues
Syngenta $6,100 $958 pro forma AstraZeneca $14,834
Novartis $12,698
Pharmacia $4,100 $1,600 $11,177
(Monsanto)
Aventis $3,400 $267 $14,809 pro forma
BASF $3,400 N/A Sold Pharma activities
for $6,900 million
Dupont $2,500 $1,938 $1,630
(Pioneer) Sold pharma business in 2001
Bayer $2,100 N/A $5,330
Dow $2,100 $350 N/A
Source: ETC Group
Top 10 Seed Companies
2000 Seed
Sales
(US)
Millions
1. DuPont (Pioneer) USA $1,938
2. Pharmacia (Monsanto) USA $1,600
3. Syngenta (Switzerland) pro forma $958
4. Groupe Limagrain (France) $622
5. Grupo Pulsar (Seminis) Mexico $474
6. Advanta (AstraZeneca and Cosun) $373
UK and Netherlands
7. Dow (+ Cargill North America) $350
USA estimate
8. KWS AG (Germany) $332
9. Delta & Pine Land (USA) $301
10. Aventis (France) $267
Source: ETC Group
Top 10 Agrochemical Companies
Agchem
Sales
(US) Share of
Millions, World
Company 2000 Market
1. Syngenta (Novartis + $6,100 20%
AstraZeneca) pro forma
2. Pharmacia (Monsanto) $4,100 14%
3. Aventis (AgrEvo +Rhone $3,400 11%
Poulenc)
4. BASF (+ Cyanamid) $3,400 11%
pro forma
5. DuPont $2,500 8%
6. Bayer $2,100 7%
7. Dow AgroSciences $2,100 7%
8. Makhteshim-Agan $675 2%
9. Sumitomo $625 2%
10. FMC $575 2%
Source: ETC Group, based on data provided by Allan
Top 10 Food & Beverage Corporations 2001
Food & F&B as
Beverage % of
Sales 2000 total sales
Company US$ millions 2000
Nestlé (Switzerland) 48,855 100%
Philip Morris
(Kraft + Nabisco)(USA) 30,907 49%
ConAgra Inc. (+ Intl. 25,386 100%
Home Foods) (USA)
Unilever ( + Bestfoods) 21,127 48%
(Netherlands/UK)
Coca-Cola Company 20,458 100%
(USA)
PepsiCo Inc. (USA) 20,438 100%
IBP Inc. (USA) 16,950 100%
Diageo (UK) 16,651 100%
Mars Inc. (USA) 15,300 ?
Groupe Danone (France) 12,308 100%
Source: ETC Group, based on Prepared Foods, July, 2001 and Fortune Global 2000.
74% of Agbio Patents Held by Six Gene Giants
Patents Market
Held Share
Other 26%
Pharmacia 287 21%
(Monsanto)
DuPont 279 20%
Syngenta 173 13%
Dow 157 11%
Aventis 77 6%
Grupo Pulsar 38 3%
Source: RAFI analysis of patents, 9feb01
For full text go to RAFI
The Action Group on Erosion, Technology and Concentration, formerly RAFI, is an international civil society organization headquartered in Canada. The ETC Group (pronounced Etcetera Group) is dedicated to the advancement of cultural and ecological diversity and human rights. Our new web site, www.etcgroup.org is under construction. All RAFI and ETC Group's publications are available at: www.rafi.org
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