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Competition in Fresh Produce Markets: An Empirical Analysis of Marketing Channel Performance

Author

Listed:
  • Richards, Timothy J.
  • Patterson, Paul M.

Abstract

Fresh produce growers/shippers believe that consolidations in grocery retailing may empower retailers to act less competitively. This study evaluates the extent to which retailers exercise market power in buying from growers and selling to consumers. Sales data for retail chains in six U.S. metropolitan markets are used along with data on grower prices for an analysis on apples, grapes, oranges, and grapefruit. The evidence varies by commodity, but does consistently point to the exercise of market power by retailers in consumer sales; less support is found on buying market power. Market power varies over time and with produce volume.

Suggested Citation

  • Richards, Timothy J. & Patterson, Paul M., 2003. "Competition in Fresh Produce Markets: An Empirical Analysis of Marketing Channel Performance," Contractor and Cooperator Reports 291973, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerscc:291973
    DOI: 10.22004/ag.econ.291973
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    Citations

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    Cited by:

    1. Réquillart, Vincent & Simioni, Michel & Varela-Irimia, Xose-Luis, 2008. "Imperfect Competition in the Fresh Tomato Industry," IDEI Working Papers 498, Institut d'Économie Industrielle (IDEI), Toulouse, revised 25 Feb 2009.
    2. Li, Lan & Carman, Hoy F. & Sexton, Richard J., 2005. "Grocery Retailer Pricing Behavior for California Avocados with Implications for Industry Promotion Strategies," 2005 Annual meeting, July 24-27, Providence, RI 19498, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Hassan Fouayzi & Julie A. Caswell & Neal H. Hooker, 2006. "Motivations of Fresh-Cut Produce Firms to Implement Quality Management Systems," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 132-146.
    4. Plastina, Alejandro S. & Giannakas, Konstantinos, 2007. "Market And Welfare Effects Of Mandatory Country-Of-Origin Labeling In The Us Specialty Crops Sector," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9735, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Shu‐Yu Huang & Richard J. Sexton & Tian Xia, 2006. "Analysis of a supply‐control program under uncertainty and imperfect competition: Chinese cabbage in Taiwan," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 69-80, January.
    6. Tian Xia & Brian Sancewich, 2018. "Interaction between buyer power in agricultural procurement and seller power in food retailing, and optimal allocation of anti-trust efforts," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-19, December.
    7. Sheldon, Ian M., 2017. "The Competitiveness Of Agricultural Product And Input Markets: A Review And Synthesis Of Recent Research," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(1), pages 1-44, February.
    8. Joseph, Siny & Lavoie, Nathalie, 2008. "Effectiveness of COOL in the U.S. Seafood Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Sexton, Richard J. & Xia, Tian & Li, Lan, 2006. "Food Retailers' Pricing and Marketing Strategies, with Implications for Producers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), pages 1-18, October.
    10. Jason H. Grant & Dayton M. Lambert & Kenneth A. Foster, 2010. "A Seasonal Inverse Almost Ideal Demand System for North American Fresh Tomatoes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 215-234, June.
    11. Ferrier, Peyton & Peterson, Everett E. & Landes, Maurice, 2012. "Specialty Crop Access to U.S. Markets: A Case Study of Indian Mangoes," Economic Research Report 262228, United States Department of Agriculture, Economic Research Service.
    12. Pardini, Chelsea A. & Espinola-Arredondo, Ana, 2020. "Facing Fungicide Resistance in Grape Production: A Game Theoretic Approach," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304309, Agricultural and Applied Economics Association.
    13. Chelsea A. Pardini & Ana Espínola‐Arredondo, 2023. "Fungicide resistance and misinformation: A game theoretic approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(2), pages 171-201, June.
    14. Alejandro Plastina & Konstantinos Giannakas & Daniel Pick, 2011. "Market and Welfare Effects of Mandatory Country‐of‐Origin Labeling in the U.S. Specialty Crops Sector: An Application to Fresh Market Apples," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 1044-1069, April.
    15. Sexton Richard J. & Zhang Mingxia & Chalfant James A., 2005. "Grocery Retailer Behavior in Perishable Fresh Produce Procurement," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-23, February.
    16. Jared G. Carlberg & Robert J. Hogan & Clement E. Ward, 2009. "Game theory application to Fed Cattle procurement in an experimental market," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 56-69.
    17. Xia, Tian & Li, Xianghong, 2009. "Asymmetric Price Transmission and Demand Characteristics," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49400, Agricultural and Applied Economics Association.

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