Global traders and the integration of Chile and Mexico into the configuration of the global value chain of berries

Abstract

This paper examines the configuration of the global value chain of berries (GVCB) by analysing the trajectories and strategies of global trading firms; as well as the local advantages of Chile and Mexico that allowed them to integrate into this chain. The study applies the basis of the methodology of multiple case studies. The results show that the trading companies configured the GVCB by making use of their knowledge of the berry market, the plant genetic improvement, the growth in the world consumption, and the advances in the logistics for long-distance trading. Trading companies promoted the berry production of Chile and Mexico to reduce the seasonality of the offer considering their comparative advantages, such as access to destination markets, the agro-climatic conditions, the availability and cost of production factors, and the institutional context. Multinational berry traders have driven the configuration of GVCB through global expansion strategies and use their governance power to coordinate global chain operations. Local actors from both countries took the opportunity to integrate into global markets and developed highly dynamic production clusters, which they adapted to their conditions. The GVCB also faces challenges due to growing concerns about environmental care and social responsibility for workers.