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Structure and Concentration of The Brazilian Sugarcane Market

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Abstract

The aim of this study was to analyze the structure and concentration indexes of the sugarcane market in the South-Central region of Brazil. Based on the concept of relevant or antitrust market, used by leading competition defense agencies worldwide, we were able to reach the conclusion that the sugarcane buyers' market is much more restricted in comparison with the market defined in the empirical literature, thus underestimating the actual market concentration indexes. Our results indicate that the sugarcane markets are restricted to local markets and, in general, these markets are structured in two ways: monopsonies or oligopsonies. All the concentration indexes found were not only high, but also much higher than the results of other empirical studies. The results however do not indicate that such indexes are decreasing over time as unarguably as exposed in the literature. Acknowledgement : The authors would like to thank the financial support of the Research Foundation of the State of Goias (FAPEG) and the National Council for Scientific and Technological Development (CNPq)

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  • Scalco, P. & Bastos, A., 2018. "Structure and Concentration of The Brazilian Sugarcane Market," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277169, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277169
    DOI: 10.22004/ag.econ.277169
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    1. Haldrup, Niels, "undated". "Empirical analysis of price data in the delineation of the relevant geographical market in competition analysis," Economics Working Papers 2003-9, Department of Economics and Business Economics, Aarhus University.
    2. Richard J. Sexton, 2000. "Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1087-1104.
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