Market power in the German dairy value chain

Grau, Aaron; Hockmann, Heinrich

doi:10.1002/agr.21529

Cited by 22 publications

(29 citation statements)

References 49 publications

(63 reference statements)

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“…There were different phases in the expansion and transformation of agri-food markets; first, there was a proliferation of small-and medium-sized enterprises (SMEs) then processes of concentration (especially in distribution/retail i.e., 'supermarket revolution'), consolidation and 'multi-nationalization' in market segments and along the agri-food supply chain (downstream, midstream, and upstream) [59]. These changes deeply influenced the whole food supply chain, from agriculture/food production to processing, transport and distribution, remodeling its structure into the shape of an hourglass: at the bottom many atomistic farmers, a few larger food processors in the middle, and at the top a huge number of various distributers [70,71]. These patterns are particularly evident in the developed countries such as those of the European Union (EU) [72] (Figure 1).…”

Section: Drivers Of and Trends In Agri-food Marketsmentioning

confidence: 99%

Agri-Food Markets towards Sustainable Patterns

2020

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In recent decades, the confluence of different global and domestic drivers has led to progressive and unpredictable changes in the functioning and structure of agri-food markets worldwide. Given the unsustainability of the current agri-food production, processing, distribution and consumption patterns, and the inadequate governance of the whole food system, the transition to sustainable agriculture and food systems has become crucial to effectively manage a global agri-food market able in supporting expected population growth and ensuring universal access to sufficient, safe, and nutritious food for all. Based on a critical review of the existing international literature, the paper seeks to understand the evolutionary paths of sustainability issues within agri-food markets by analyzing their drivers and trends. An extensive analysis was conducted highlighting the development and importance of the body of knowledge on the most important sustainability transition frameworks, focusing mainly on the relationship between markets, trade, food and nutrition security, and other emerging issues within agri-food markets. Finally, the study makes suggestions to extend the research in order to improve basic knowledge and to identify opportunities to design meaningful actions that can shape agri-food markets and foster their transition to sustainability.

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Section: Drivers Of and Trends In Agri-food Marketsmentioning

confidence: 99%

Agri-Food Markets towards Sustainable Patterns

2020

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“…Loy et al. () find that private label prices in Germany adjust to cost changes quicker than national brands, while Grau and Hockmann () have established the existence of market power in German dairy markets.…”

Section: Introductionmentioning

confidence: 99%

The role of retail market power and state regulations in the heterogeneity of farm‐retail price transmission of private label and branded products

Liu

Chen

Rabinowitz

2018

Agricultural Economics

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Given the leading role of private label brands in the fluid milk market, it is of special interest to focus on possible differences in farm-retail price transmission between private label and branded milk as well as the causes of heterogeneity. This article examines the heterogeneous effects of private label and branded products on price transmission in the fluid milk market using a panel threshold asymmetric error correction model. Results indicate that upward retail-price adjustment is faster than the downward price adjustment for both private label and branded milk. The speed of adjustment of private label products is significantly faster than branded products in three different price regimes. We further investigate the reasons of heterogeneity in farm-retail price transmission of private label milk. We find that both retailer market power and state pricing regulations contribute to the heterogeneity in asymmetric price transmission. Higher retailer market power causes retail prices of private label milk to rise faster and to fall slower. The existence of a state pricing regulation slows down the adjustment speed of retail prices of private labels back to the long-run equilibrium, regardless of whether the retail price is low or high.JEL classifications: Q11, Q13, L11, L81

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“…In spite of the criticism However, as illustrated in this special issue by Grau and Hockmann (), other authors have produced evidence in favor of estimating static conduct parameters, at least for specific industries (e.g., Dockner, ; Genesove & Mullin, ), so that static NEIO models are still widely in use.…”

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confidence: 99%

Market power and bargaining in agrifood markets: A review of emerging topics and tools

2017

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Recent developments in modern agri-food markets have called into question the predictive capability of the traditional models and tools used by agricultural economists to assess and measure market power. As a result, agricultural economists are on a quest for novel methods and approaches that surpass the traditional market power construct. In this article, we present an essential overview of the evolution of the literature concerning power relationships in agrifood value chains. The goal of this review is to emphasize recent conceptual and empirical approaches, as well as highlight topics of interest that are likely to shape the direction of future analyses of market power and bargaining in the agrifood sector. [EconLit citations: L1,

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Market power in the German dairy value chain

Cited by 22 publications

References 49 publications

Agri-Food Markets towards Sustainable Patterns

Agri-Food Markets towards Sustainable Patterns

The role of retail market power and state regulations in the heterogeneity of farm‐retail price transmission of private label and branded products

Market power and bargaining in agrifood markets: A review of emerging topics and tools

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