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Changes in the Structure of the Florida Processed Orange Industry and Potential Impacts on Competition

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  • Guci, Ledia
  • Brown, Mark G.
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    Abstract

    The Florida processed orange industry has become more concentrated in the last two decades raising questions on competitive behavior, particularly with respect to the purchase by processors of fruit from Florida orange growers. The purpose of this paper is to examine the changes in market structure of the Florida orange industry at the processor as well as retail and grower levels. The results suggest that the increase in concentration in the Florida orange processing industry, as well as the increase in concentration at the retail grocery store level, has increased the likelihood of non-competitive pricing behavior involving these industrial sectors.

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    File URL: http://purl.umn.edu/36811
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    Bibliographic Info

    Paper provided by Florida Department of Citrus in its series Research Papers 2007 with number 36811.

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    Date of creation: 19 Jul 2007
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    Handle: RePEc:ags:fdcr07:36811

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    Web page: http://www.floridajuice.com/industry_market.php

    Related research

    Keywords: Industrial Organization;

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    1. Azzam, Azzeddine M. & Schroeter, John R., 1995. "The Tradeoff Between Oligopsony Power and Cost Efficiency in Horizontal Consolidation: An Example from Beef Packing," Staff General Research Papers 5062, Iowa State University, Department of Economics.
    2. Crespi John M. & Gao Zhifeng & Hanawa Peterson Hikaru, 2005. "A Simple Test of Oligopsony Behavior with an Application to Rice Milling," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(2), pages 1-19, August.
    3. Richard E. Just & Wen S. Chern, 1980. "Tomatoes, Technology, and Oligopsony," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 584-602, Autumn.
    4. Azzam, Azzeddine M, 1997. "Measuring Market Power and Cost-Efficiency Effects of Industrial Concentration," Journal of Industrial Economics, Wiley Blackwell, vol. 45(4), pages 377-86, December.
    5. Ani L. Katchova & Ian M. Sheldon & Mario J. Miranda, 2005. "A dynamic model of oligopoly and oligopsony in the U.S. potato-processing industry," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 409-428.
    6. Catherine J. Morrison Paul, 2001. "Cost Economies And Market Power: The Case Of The U.S. Meat Packing Industry," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 531-540, August.
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