IDEAS home Printed from https://ideas.repec.org/a/ags/auagre/335273.html
   My bibliography  Save this article

Market Power in the Domestic Fresh Meat Market

Author

Listed:
  • Hilli, Alastair
  • Griffith, Garry

Abstract

Since previous tests for market power in the Australian domestic fresh meat market more than a decade ago, a number of major changes have occurred which warrant another assessment. Firstly, there has been considerable structural change with concerns of market power arising from consolidation in the processing sector. Secondly, competition has increased in the primary sales channel for fresh meat with the addition of new retail entrants. Thirdly, the Australian Competition and Consumer Commission and other government bodies have continued to express their interest in agricultural competitiveness in the form of numerous reviews and legal proceedings. Using the New Empirical Industrial Organisation framework, this study re-assesses the question of whether there is any market power present in the domestic fresh beef, lamb and pork markets within Australia, using data covering the period 1970-2017. Overall, the study concludes that there is consistent evidence of market power in the fresh pork input market. However, there is no evidence of market power in either the input or output markets of beef and lamb, or the pork output market. Some areas for further research are suggested.

Suggested Citation

  • Hilli, Alastair & Griffith, Garry, 2022. "Market Power in the Domestic Fresh Meat Market," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 30(8), November.
    • Handle: RePEc:ags:auagre:335273
    DOI: 10.22004/ag.econ.335273
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/335273/files/AAR-Vol-30-Paper-8-Hilli-and-Griffith.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.335273?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Perloff,Jeffrey M. & Karp,Larry S. & Golan,Amos, 2007. "Estimating Market Power and Strategies," Cambridge Books, Cambridge University Press, number 9780521011143.
    2. Digal, Larry N. & Ahmadi-Esfahani, Fredoun Z., 2002. "Market power analysis in the retail food industry: a survey of methods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), pages 1-26.
    3. Chung, Kit C. & Griffith, Garry R., 2009. "Another look at market power in the Australian fresh meat industries," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 17, pages 1-18.
    4. G. R. Griffith, 2004. "The Impact of Supermarkets on Farm Suppliers," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(3), pages 329-336, September.
    5. Libby Hattersley & Bronwyn Isaacs & David Burch, 2013. "Supermarket power, own-labels, and manufacturer counterstrategies: international relations of cooperation and competition in the fruit canning industry," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(2), pages 225-233, June.
    6. Carol Richards & Hilde Bjørkhaug & Geoffrey Lawrence & Emmy Hickman, 2013. "Retailer-driven agricultural restructuring—Australia, the UK and Norway in comparison," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(2), pages 235-245, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dries Maes & Mark Vancauteren & Steven Passel, 2019. "Investigating market power in the Belgian pork production chain," Review of Agricultural, Food and Environmental Studies, Springer, vol. 100(1), pages 93-117, December.
    2. Dries Maes & Mark Vancauteren & Steven Van Passel, 2019. "Investigating market power in the Belgian porkproduction chain," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 100(1-4), pages 93-117.
    3. Stefan Hirsch & David Lanter & Robert Finger, 2021. "Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 235-263, April.
    4. Maes, Dries & Vancauteren, Mark & Van Passel, Steven, 2019. "Investigating market power in the Belgian pork production chain," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 100(1-4), November.
    5. Daniele Cavicchioli, 2018. "Detecting Market Power Along Food Supply Chains: Evidence and Methodological Insights from the Fluid Milk Sector in Italy," Agriculture, MDPI, vol. 8(12), pages 1-22, December.
    6. Daniele Cavicchioli & Luca Cacchiarelli & Alessandro Sorrentino & Roberto Pretolani, 2022. "Should We Cry over the Spilt Milk? Market Power and Structural Change along Dairy Supply Chains in EU Countries," Sustainability, MDPI, vol. 14(8), pages 1-18, April.
    7. Rizwan Abbas & Gehad Abdullah Amran & Irshad Hussain & Shengjun Ma, 2022. "A Soft Computing View for the Scientific Categorization of Vegetable Supply Chain Issues," Logistics, MDPI, vol. 6(3), pages 1-17, June.
    8. Daniele CAVICCHIOLI, 2013. "Detecting market power along food supply chains: evidence from the fluid milk sector in Italy," Departmental Working Papers 2013-01, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 30 Jan 2013.
    9. Maes, Dries & Vancauteren, Mark & Van Passel, Steven, 2016. "Investigating market power in the Belgian pork production chain," 149th Seminar, October 27-28, 2016, Rennes, France 245114, European Association of Agricultural Economists.
    10. Hovhannisyan, Vardges & Stiegert, Kyle W. & Bozic, Marin, 2013. "On Endogeneity Of Retail Market Power In An Equilibrium Analysis: A Control Function Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149830, Agricultural and Applied Economics Association.
    11. Fraser, Iain, 2005. "Microeconometric analysis of wine grape supply contracts in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-24.
    12. Giannakas Konstantinos & Kalaitzandonakes Nicholas & Magnier Alexander & Mattas Konstadinos, 2011. "Economic Effects of Purity Standards in Biotech Labeling Laws," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-47, April.
    13. Griffith, Garry R. & Malcolm, Bill & Mounter, Stuart W. & Slattery, Henry, 2010. "Old model, new problem: when should you update a model and what happens when you do?," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 18, pages 1-16.
    14. Federica Di Marcantonio & Pavel Ciaian & Vicente Castellanos, 2018. "Unfair trading practices in the dairy farm sector: Evidence from selected EU regions," JRC Research Reports JRC112770, Joint Research Centre.
    15. Nakajima, Toru, 2012. "Estimating Time Variation of Market Power: Case of U.S. Soybean Exports," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124775, Agricultural and Applied Economics Association.
    16. Vítor Marques & Isabel Soares & Adelino Fortunato, 2012. "Application of a Structural Model to the Spanish Electricity Wholesale Market," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 65-108.
    17. Vardges Hovhannisyan, 2018. "A structural model of cost pass-through: the case of the US yogurt retailing," Empirical Economics, Springer, vol. 55(2), pages 805-830, September.
    18. Hummels, David & Lugovskyy, Volodymyr & Skiba, Alexandre, 2009. "The trade reducing effects of market power in international shipping," Journal of Development Economics, Elsevier, vol. 89(1), pages 84-97, May.
    19. Kutlu, Levent & Tran, Kien C. & Tsionas, Mike G., 2020. "A spatial stochastic frontier model with endogenous frontier and environmental variables," European Journal of Operational Research, Elsevier, vol. 286(1), pages 389-399.
    20. Vítor Marques & Adelino Fortunato & Isabel Soares, 2012. "Can Structural Models be Useful to Understand the Electricity Wholesale Markets? An Application to Spain," Chapters, in: Joseph E. Harrington Jr & Yannis Katsoulacos (ed.), Recent Advances in the Analysis of Competition Policy and Regulation, chapter 15, Edward Elgar Publishing.

    More about this item

    Keywords

    Livestock Production/Industries; Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:auagre:335273. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.agrifood.info/review/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.