Abstract
Using the global value chain analysis as a theoretical framework, this paper examines investment by New Zealand agri-business companies in South America. Of key importance within the global value chain analysis is the role that lead firms within an industry play in establishing and maintaining production links. Two of New Zealand’s leading agri-business companies actively engaged in South America are Fonterra Co-operative Limited, the fifth largest dairy company globally, and PGG Wrightson, New Zealand’s largest rural service provider. Our study indicates that by integrating South America in their global value chain, New Zealand agri-business companies are shaping production linkages and developing new markets, meanwhile, they are adding value to local farming practices.
