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Supermarkets and their impacts on the agrifood system of Brazil: The competition among retailers

Author

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  • Elizabeth M.M.Q. Farina

    (School of Economics, Business and Accounting, São Paulo University, FEA|USP, Luciano Gualberto Avenue, 908, sala C112, Cidade Universitária, São Paulo, SP, Brazil 05508-900)

  • Rubens Nunes

    (School of Zootecnic and Food Engineering, São Paulo University, FZE|USP, Duque de Caxias Norte Avenue, 225, Pirassununga, SP, Brazil 13635-900)

  • Guilherme F. de A Monteiro

    (School of Economics, Business and Accounting, São Paulo University, FEA|USP, Luciano Gualberto Avenue, 908, room C112, Cidade Universitária, São Paulo, SP, Brazil 05508-900)

Abstract

This article proposes an explanation for evidence that challenges the received knowledge in relation to the advance of large supermarket chains in the Brazilian food market. It was thought that the large, more efficient chains would eliminate the traditional stores and the smaller supermarkets as well, based on price competition. However, the evolution of the food retail structure in Brazil shows growth in the number of traditional firms and independent supermarkets in the last nine years, with little evidence of loss of importance in food sales, especially as to the independent supermarkets whose share in food sales has grown. [EconLit citation: L100, L130, Q130.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 133-147, 2005.

Suggested Citation

  • Elizabeth M.M.Q. Farina & Rubens Nunes & Guilherme F. de A Monteiro, 2005. "Supermarkets and their impacts on the agrifood system of Brazil: The competition among retailers," Agribusiness, John Wiley & Sons, Ltd., vol. 21(2), pages 133-147.
    • Handle: RePEc:wly:agribz:v:21:y:2005:i:2:p:133-147
    DOI: 10.1002/agr.20039
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    References listed on IDEAS

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    1. Roger Clarke & Stephen Davies & Paul Dobson & Michael Waterson, 2002. "Buyer Power and Competition in European Food Retailing," Books, Edward Elgar Publishing, number 2405.
    2. Pablo T. Spiller & Edgardo Favaro, 1984. "The Effects of Entry Regulation on Oligopolistic Interaction: The Uruguayan Banking Sector," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 244-254, Summer.
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    Cited by:

    1. Scalco, Paulo R. & Braga, Marcelo J., 2015. "Identification of Market Power in Bilateral Oligopoly: The Brazilian Wholesale Market of UHT Milk," 2015 Conference, August 9-14, 2015, Milan, Italy 212278, International Association of Agricultural Economists.
    2. Harris, Keith D., 2015. "Red Arrow Products Smokin’ Into the Future: Facing Changing Diets and New Challenges in the Food Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(4), pages 1-15, November.
    3. Minten, Bart, 2007. "The food retail revolution in poor countries: Is it coming or is it over? Evidence from Madagascar," IFPRI discussion papers 719, International Food Policy Research Institute (IFPRI).
    4. Sukhpal Singh, 2012. "Role of FDI in Multi-brand Retail Trade in India and its Implications," Review of Market Integration, India Development Foundation, vol. 4(3), pages 283-308, December.
    5. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    6. Scalco, Paulo Roberto & Braga, Marcelo Jose, 2014. "Measuring the Degree of Oligopsony Power in the Brazilian Raw Milk Market," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(2), pages 1-20, May.
    7. Suryadarma, Daniel & Poesoro, Adri & Akhmadi & Budiyati, Sri & Rosfadhila, Meuthia & Suryahadi, Asep, 2010. "Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia," Food Policy, Elsevier, vol. 35(1), pages 79-86, February.
    8. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    9. Liang Lu & Thomas Reardon, 2018. "An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1320-1335.
    10. Bart Minten, 2008. "The Food Retail Revolution in Poor Countries: Is It Coming or Is It Over?," Economic Development and Cultural Change, University of Chicago Press, vol. 56(4), pages 767-789, July.
    11. Lanter, David & Hirsch, Stefan & Finger, Robert, 2018. "Profitability and Competition in EU Food Retailing," 2018 Annual Meeting, August 5-7, Washington, D.C. 274202, Agricultural and Applied Economics Association.

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