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Abstract

The international trade and diversion of resources within agriculture is relatively low due to market, political and technical barriers. These barriers will be of less importance in the next decade, and this will accelerate globalisation. Various studies have estimated and quantified the effect of liberalization on international trade. It is shown that agricultural international trade will increase significantly as a result of the present and future liberalization of the agricultural policy. Still, there are barriers to agricultural globalisation, but often farmers must overcome these obstacles in order to obtain the competitive advantage of globalisation. Economies of scale, market growth and access to raw matrerials are major motives. Further on, globalisation is recognized to be a very strategic challenge by major food industries, and a trend towards transnational corporations is appearing.

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