Market Power in Poultry Production Contracting? Evidence from a Farm Survey

MacDonald, James M.; Key, Nigel

doi:10.1017/s1074070800024056

Cited by 9 publications

(4 citation statements)

References 10 publications

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“…Most growers report few integrators in their local area. For example, MacDonald (2014) found that 77 percent of broiler growers faced no more than three potential integrators, and 54 percent faced just one or two, findings that are consistent with other studies covering different years (MacDonald & Key, 2012;FLAG, 2001;Burton et al, 2003). While national broiler CR4 is 53 percent, local grower markets are much more concentrated.…”

Section: Local Market Concentrationsupporting

confidence: 68%

Concentration and competition in U.S. agribusiness

MacDonald¹,

Dong²,

Fuglie³

2023

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This report details issues surrounding market concentration in agribusiness, particularly in three agribusiness sectors where concentration has increased over time: seeds, meatpacking, and food retail. Market concentration and its impact on competition have attracted growing public scrutiny. Critics argue that many industries have grown too concentrated, with fewer firms competing with one another and a consequent weakening of competition. The report covers the consolidation in each of these industries, explains the driving forces behind increased concentration, and examines public policies aimed at encouraging competition, focusing on the implementation of merger policy.

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Section: Local Market Concentrationsupporting

confidence: 68%

Concentration and competition in U.S. agribusiness

MacDonald¹,

Dong²,

Fuglie³

2023

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“…In other words, as another experimental approach, increased concentration within the food business combined with generalized relative contracts may very well result in a discount in client weight. MacDonald and Wu (2014) conducted many experimental economic analyses of various levels of competition in markets wherever multiple buyers take or leave their offers to multiple sellers. Their findings show that as the concentration of the downstream processor market increases, suppliers are a lot more willing to accept contracts that provide buyers with more leeway.…”

Section: Literature Reviewmentioning

confidence: 99%

Competitive agricultural input markets in Ethiopia: Theoretical promises versus reality

Shikur

2023

Regional Science Policy & Practice

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Using the agency theory framework to develop conceptual frameworks, this study investigates the main challenges to and potential determinants of competitive agricultural input markets by comparing intervention and control districts. Specifically, this study examines the impact of the Agriculture One‐Stop Shop Project on the competitiveness of agricultural input markets in Ethiopia. The paper uses data collected from farmers and project stakeholders through interviews and focus group discussions and compiles recorded price and quantity sold for each agricultural input for four years. The study employs a content analysis, concentration ratio, market margin, and pooled panel regression models to analyze the set of data. The finding shows the existence of weak innovative system functions that is the mirror of unsatisfactory project outcomes in some intervention areas. Overall, the findings indicate that the project has increased competition by reducing market margins and relative prices, delivering a high quantity of high‐quality agricultural inputs, and providing new services and a range of input choices. An input market's level of competitiveness is determined by contractual arrangements, capital, background, and risk management. An agricultural input market's function system is influenced by the structural composition of the public–private partnership network, coordination, and cooperation. The one‐stop‐shop approach, operationalized through institutional arrangements, has the potential to facilitate and coordinate the functions necessary to change competitiveness in the agricultural input market. This study's panel model results show that the project has had statistically significant effects on the competitiveness of the agricultural input markets. The government should replicate this new approach throughout the country going forward.

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“…An illustration of such productivity effects is found in the literature documenting the growing importance of economies of scale in various agricultural sectors in OECD countries, and the corresponding growth in average farm sizes (Bokusheva and Čechura, 2017[75]) (Macdonald, Hoppe and Newton, 2018 [76]) (Chen et al, 2019[77]) (Bokusheva and Kimura, 2016[78]). The economics underlying these trends is illustrated in Figures 5 and 6 using estimates of the cost structure of Dutch and US dairy farming (based on van der Meulen (2018 [79]) and MacDonald et al (2016[80]) respectively).…”

Section: Structural Challenges In Agri-food Chains Figure 4 Long-term Evolution Of Commodity Prices In Real Termsmentioning

confidence: 99%

Concentration and market power in the food chain

Deconinck

2021

OECD Food, Agriculture and Fisheries Papers

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The report was declassified by the OECD Working Party on Agricultural Policies and Markets in November 2020 and was prepared for publication by the OECD Secretariat. This report, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

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Market Power in Poultry Production Contracting? Evidence from a Farm Survey

Cited by 9 publications

References 10 publications

Concentration and competition in U.S. agribusiness

Concentration and competition in U.S. agribusiness

Competitive agricultural input markets in Ethiopia: Theoretical promises versus reality

Concentration and market power in the food chain

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