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Market structure, power, and the unfair trading practices directive in the EU food sector: a review of indicators

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  • Nes, Kjersti
  • Colen, Liesbeth
  • Ciaian, Pavel

Abstract

Competition and power imbalances in the food chain are under increased scrutiny from policy makers. We assess the competitive conditions in the EU food sector, using firm-level accounting data to examine firm size distributions and market concentration (for 10 countries), and production-function-derived markups (for 7 countries) for food manufacturing, retail, and wholesale industries. Key findings include the following: (i) most firms are small, but larger firms generate most turnover; (ii) concentration is notable in certain subsectors (25% of retail/wholesale and 50% manufacturing subsectors); (iii) the correlation between turnover size, markups, and concentration at subsector level is weak. We discuss the implications for the use of turnover-based classification in the EU policy initiative on unfair trading practices.

Suggested Citation

  • Nes, Kjersti & Colen, Liesbeth & Ciaian, Pavel, 2024. "Market structure, power, and the unfair trading practices directive in the EU food sector: a review of indicators," Agricultural and Resource Economics Review, Cambridge University Press, vol. 53(3), pages 454-477, December.
    • Handle: RePEc:cup:agrerw:v:53:y:2024:i:3:p:454-477_5
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