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The Changing Structure Of Global Food Markets: Dimensions, Effects, And Policy Implications

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  • John M. Connor

    (Department of Agricultural Economics, College of Agriculture, Purdue University)

Abstract

The paper discusses trends in ownership concentration in three principal stages of the food system: food retailing, food manufacturing, and selected inputs purchased by agricultural producers and by food processors. In each of these levels, the available information from North America, Western Europe, or global sources shows that sales concentration is increasing. An attempt is then made to assess the impact on performance of these concentration trends for final consumers and to a lesser extent for agricultural producers. Performance measures most of interest are the traditional ones derived from economic welfare analysis of imperfect competition. Market performance is analyzed one level at a time but the more difficult arena of vertical subsector performance is also examined. The current role played by public policies in ameliorating consumer and producer welfare as it is affected by the exercise of market power is also assessed. In general, competition laws that apply to horizontal conduct are more settled and more easily enforced than are public policies directed at vertical strategic conduct.

Suggested Citation

  • John M. Connor, 2003. "The Changing Structure Of Global Food Markets: Dimensions, Effects, And Policy Implications," Working Papers 03-02, Purdue University, College of Agriculture, Department of Agricultural Economics.
    • Handle: RePEc:pae:wpaper:03-02
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    File URL: http://ageconsearch.umn.edu/bitstream/28675/1/sp03-02.pdf
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    References listed on IDEAS

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    Cited by:

    1. Zafeira Kastrinaki & Paul Stoneman, 2011. "Merger Patterns in the European Food Supply Chain," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(3), pages 463-487, November.
    2. Věra Bečvářová, 2011. "Economic and regional consequences of direct payments under the current CAP philosophy," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(4), pages 19-26.
    3. Hoekman, Bernard & Martin, Will, 2012. "Reducing distortions in international commodity markets : an agenda for multilateral cooperation," Policy Research Working Paper Series 5928, The World Bank.
    4. Menapace, Luisa, 2010. "Geographical indications and quality promotion in food and agricultural markets: domestic and international issues," ISU General Staff Papers 201001010800002558, Iowa State University, Department of Economics.

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