Agrifood Grades and Standards in the Extended Mercosur: Their Role in the Changing Agrifood System

Abstract

is among the most important in terms of trade volumes in the developing world. It contains global powerhouses of agroindustry and agriculture, such as Brazil, ranked fourth worldwide, and Argentina and Chile, among the global frontrunners in meat and cereals, and fruit, respectively. Income growth and rapid urbanization are changing diets, increasing the importance of processed foods and nonstaples as Bennett's law predicts. The most important nonstaples (dairy, vegetablesfruit, meat, and coffee) have stringent export requirements with respect to G&S in Organization for Economic Cooperation and Development (OECD) countries, and Mercosur domestic markets are themselves becoming more demanding in this regard. The paper proceeds as follows. Section 2 presents definitions and theoretical hypotheses. Section 3 discusses policy and market determinants of changes in G&S, and highlights the importance of the emergence of privatized G&S. Section 4 hypothesizes that the changes in G&S are adding fuel to the forces of agrifood system concentration in the area. Section 5 concludes.