McCain Foods, Canada: The Political Economy of Monopoly

Abstract

This chapter deals with McCain Foods Ltd., a potato processor in New Brunswick, Canada. The case is of interest for a variety of reasons. First, agribusiness in the St. John valley of New Brunswick is a very complete ‘system’ which affects virtually every aspect of life in the area. McCain has been here for some twenty-five years, time enough to produce long-term effects on farming practices and community life. Furthermore, McCain has used this time to consolidate and diversify its activities in the area to the extent that it now forms a classic case of monopoly. Most contract farming situations involve some degree of monopoly, with a multitude of growers facing at most a couple of firms. The McCain case is a ‘textbook example’ which shows what happens when such concentration is carried to the extreme.

Politics and business don’t mix. New Brunswick’s too small for politics.

K. C. Irving, New Brunswick entrepreneur