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The role of market concentration in the agrifood industry

Manuel Hernandez, Alvaro Espinoza, Maria Lucia Berrospi, Koen Deconinck, Johan Swinnen and Robert Vos

No 2168, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: The role of market concentration and potential market power exertion in the agri-food industry is a topic of longstanding interest and concern to policymakers, stakeholders, and researchers. This study provides a comprehensive overview of recent trends in market concentration upstream, midstream, and downstream the agri-food industry at the global, regional, and country level, and assesses how and to what extent concentration could be affecting market conduct and performance of food systems in developed and developing countries. The analysis additionally discusses, to the extent detectable, implications of concentration, including vertical and horizontal integration that favor concentration, for food security and nutrition and environmental sustainability. While market concentration in the agri-food industry has increased across most segments, the evidence on market power exertion is inconclusive. Several knowledge and data gaps are identified and additional research is necessary to derive more general conclusions and policy recommendations.

Keywords: agricultural economics; agrifood sector; environment; food security; nutrition; sustainability; market concentration (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-agr, nep-com and nep-ind
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Handle: RePEc:fpr:ifprid:2168