Geographies of the Firm and Transnational Agro-food Corporations in East Asia

Agro-food transnational corporations (TNCs) are pivotal players in the emergent regulatory structures of the East Asian agro-food system, but there has been little explicit concern to account theoretically or empirically for their prevailing socio-spatial practices and strategies. This paper uses the case of Nestlé in South East Asia to make three claims. First, transnational corporate strategy is best understood as comprising an interaction of restructuring processes within the arenas of production, realisation (sales), and reproduction (corporate finance and investment). Second, the analysis of agro-food transnationals in Asia requires elevated attention to the local regulation of food systems. Third, in Nestlé's case at least, the articulation of global strategies with local arenas of production and markets encourages corporate finance to play a key role in the generation of profit. This is evidenced through the extensive use of intra-firm trade and royalty payments (or, related party transactions) by Nestlé in Thailand.