The Changing Structure of Global Food Markets: Dimensions, Effects, and Policy Implications

13 Pages Posted: 14 Mar 2008 Last revised: 26 Apr 2015

See all articles by John M. Connor

John M. Connor

American Antitrust Institute (AAI); Purdue University

Multiple version iconThere are 2 versions of this paper

Date Written: 2008

Abstract

In this paper I discuss trends in ownership concentration in three principal stages of the food system: food retailing, food manufacturing, and selected inputs purchased by agricultural producers and by food processors. In each of these levels, the available information from North America, Western Europe, or global sources shows that sales concentration is increasing. I then attempt to assess the impact on performance of these concentration trends for final consumers and to a lesser extent for agricultural producers. Performance measures most of interest are the traditional ones derived from economic welfare analysis of imperfect competition. Finally, I assess the current role played by public policies in ameliorating consumer and producer welfare as it is affected by the exercise of market power.

Traditionally, economists have focused on horizontal market performance issues. That is, market performance is analyzed one level at a time. I will consider some recent findings of this type but will also venture into the more difficult arena of vertical subsector performance. Assessing vertical (distribution-channel) performance requires somewhat different tools and data sets. In general, competition laws that apply to horizontal conduct are more settled and more easily enforced than are public policies directed at vertical strategic conduct.

Suggested Citation

Connor, John M. and Connor, John M., The Changing Structure of Global Food Markets: Dimensions, Effects, and Policy Implications (2008). Available at SSRN: https://ssrn.com/abstract=1105363 or http://dx.doi.org/10.2139/ssrn.1105363

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