SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Perloff, Jeffrey M.; Shen, Edward Z..

The well-known structural model used to estimate market structure suffers from a severe collinearity problem if the marginal cost and demand equations are linear.

The Evolution of Quantitative Food Marketing Policy: A Public Perspective

Palavras-chave: Market power; Estimation; Demand and Price Analysis; Industrial Organization; L13; C1.

Ano: 2001

URL: http://purl.umn.edu/25012

LOOKING FOR GOVERNMENT'S ROLE AS AN AGRICULTURAL SAFETY NET

Cotterill, Ronald W..

Quantitative analysis of food marketing policy has played a critical role in the evolution of empirical industrial organization and antitrust enforcement over the past 40 years. This article highlights the contributions of the author and other agricultural economists. The second half of this article explains why an economist might want to do, or perhaps avoid, public policy work. It gives several examples from antitrust cases where economic policy analysis is a front-line contact sport.

Tipo: Article

Palavras-chave: Brand-level demand analysis; Expert economic testimony; Libel; Market power; Merger analysis; Price analysis; Reduced-form analysis; Industrial Organization; Marketing.

Ano: 2012

URL: http://purl.umn.edu/123309

The Impact of Imports on Price-Cost Margins: An Empirical Illustration

Dorfman, Jeffrey H..

What makes agriculture especially deserving of an active government safety net? What is different about agricultural production? Are we concerned about a safe and reliable food supply or about farmers' incomes and returns to assets? Those who make farm policy base their arguments on all of these points: the diffuse nature of agricultural production, the inherent production risk in agriculture, the need for a safe and reliable food supply, shortcomings in farm income, and low returns to assets in agriculture. This paper addresses these points and, in so doing, rules out some of these concerns as legitimate bases for current agricultural policies. By focusing on those that are genuine, U.S. farm policy could spend limited resources in areas where the most...

Tipo: Journal Article

Palavras-chave: Agricultural policy; Farm income; Farm-sector safety net; Market power; Agricultural and Food Policy; Agricultural Finance.

Ano: 2000

URL: http://purl.umn.edu/14707

Lopez, Rigoberto A.; Lopez, Elena.

This article decomposes the impact of imports on domestic price-cost margins into separate price and cost effects. Using data from 24 food-processing industries, the empirical results show that although the direct impact of imports on prices is always negative, a positive net impact on price-cost margins occurs in industries characterized by low own-price elasticity of demand and diseconomies of scale. Further results show that the disciplining effect of imports is more preponderant the lower the degree of domestic competition.

The Portuguese Tomato Processing Sector: Market Structure, Concentration and Firm Behaviour

Palavras-chave: Market power; Imports; Market structure; International trade; Food industry; Agribusiness; Demand and Price Analysis; International Relations/Trade.

Ano: 2001

URL: http://purl.umn.edu/25153

Martins, Maria De Fatima; De Oliveira, Lorena.

The purpose of this paper is to study the evolution and the structure of the Portuguese processing tomato industry. We intend to pick up the dynamics, the strategic behaviour and structural the changes in the tomato industry in Portugal during the period of 1990-2005. An overview of world and domestic production and trade in the last two decades is followed by the descriptive analysis and by the development of the market structure. The market structure analysis was carried out during 1990 - 2002, under the Structure-Conduct-Performance framework. This paper examines the concentration effect on the performance and firm's strategy. The result indicates that, market concentration in tomato processing industry in quantity is a moderate concentrate market but...

COMPETITIVE BEHAVIOR IN THE FOOD RETAILING INDUSTRY

Palavras-chave: Tomato processing industry; Concentration; Firm Strategy; Market power; Competitiveness; Industrial Organization.

Ano: 2007

URL: http://purl.umn.edu/9445

Park, Timothy A.; Weliwita, Ananda.

We develop a flexible model to examine competitive conditions in the food retailing industry based on the Box-Cox transformation of the demand and industry equilibrium conditions. The impact of key technological and market developments on shifts in the competitive index is examined. Adoption of optical scanning technology was positively related to the market power index but the index was stable and consistent with competitive conditions over the 1982-1992 period.

The Dark Side of Coffee Market Power in the German Market for Roasted Coffee

Palavras-chave: Market power; Food retailing; Box-Cox model; Technological innovations; Agribusiness; Industrial Organization.

Ano: 1996

URL: http://purl.umn.edu/16680

Koerner, Julia.

Germany is the second important coffee market in the world, just overshadowed by the United States. Coffee is the most famous beverage in Germany - even more popular than beer. On the supply side dominate few roasters. Market structure influences the market outcome and explains the processors' ability to exercise market power. This paper aims at studying the pricing behavior in the German market for roasted coffee. Respectively, it discusses the impact of three different explanations. First, market power may be due to low price elasticity related to a high level of consumption. Second, pricing behavior may be influenced by the industry concentration. And finally, pricing behavior may be change over time due to exogenous shocks. In particular, the degree of...

ECONOMIC ANALYSIS OF THE PROPOSED NORTH DAKOTA WHEAT POOL; SUMMARY

Palavras-chave: Market for roasted coffee; Germany; Elasticity of conjectural variation; Market power; Simultaneous equation system; GMM; Industrial Organization.

Ano: 2002

URL: http://purl.umn.edu/24969

Koo, Won W.; Nganje, William E.; Johnson, D. Demcey; Park, Joon J.; Taylor, Richard D..

The ND Durum Wheat Pool may provide additional revenue to durum wheat producers by raising the domestic prices in the North American market with full cooperation from the Canadian Wheat Board. The pool also could provide additional revenue to its members by improving marketing efficiency. On the other hand, the ND Spring Wheat Pool is less likely to provide additional revenue to spring wheat producers by raising domestic prices, mainly because hard red spring and winter wheat are highly substitutable. Efficiency gains also could be smaller than for durum wheat.

BSE Disease Outbreaks, Structural Change and Market Power in the Canadian Beef Industry

Palavras-chave: Marketing pool; Market power; Efficiency gains; Durum wheat; Hard red spring wheat; Pool price; Organizational structure; Operating costs; Marketing.

Ano: 1999

URL: http://purl.umn.edu/23453

Clark, J. Stephen; Cechura, Lukas; Berhanu, Adugna.

This study examines farm to wholesale prices spreads to measure the impact of the Bovine Spongiform Encephalopathy (BSE) disease outbreak on the Canadian beef industry. The study uses structure break tests developed by Gregory and Hansen (1996) and Hansen (1992) examine possible breaks within cointegrating relationships. The study finds evidence that the industry began a realignment as a result of the UK BSE disease outbreak, and the Canadian BSE disease outbreak was simply the largest realignment of the process beginning with the UK disease outbreak. However, the only statistically significant break was the BSE disease outbreak itself in May 2003. Stability was not restored until the border was reopened in 2005. Specific results indicated that the...

Retail and Wholesale Market Power in Organic Foods

Palavras-chave: BSE; Market power; Canada; Beef industry; Agribusiness; Industrial Organization; International Relations/Trade.

Ano: 2011

URL: http://purl.umn.edu/114097

Richards, Timothy J.; Acharya, Ram N.; Molina, Ignacio.

The demand for organic fresh fruits and vegetable continues to grow at a rate far higher than the rest of the produce industry. The cost of meeting organic certification standards, however, has meant that supply has been slow to adjust. With limited supply, we hypothesize that organic suppliers enjoy more market power in bargaining over their share of the retail-production cost margin for fresh apples. We test this hypothesis using a random parameters, generalized extreme value demand model (mixed logit) combined with a structural model of retail and wholesale pricing that allows conduct to vary by product attributes (organic or non-organic) and time. We find that organic growers do indeed earn a larger share of the total margin than non-organic...

Estimating the Degree of Buyers' Market Power: Evidence from the Ukrainian Meat Processing Industry

Palavras-chave: Organics; Market power; Mixed logit; Game theory; Non-linear pricing.; Industrial Organization; C35; D12; D43; L13; L41; Q13..

Ano: 2009

URL: http://purl.umn.edu/49329

Perekhozhuk, Oleksandr; Matyukha, Andriy; Glauben, Thomas.

This study develops a structural market model for the econometric analysis of buyers’ market power in the Ukrainian meat processing industry, because there is some evidence that suggests that meat processors may excise market power in the agricultural market of slaughtered livestock. The estimation results did not produce any evidence suggesting the existence of buyers’ market power. Contrary to many other NEIO-studies, we extended the market structure market model by the three subsequent models. Using endogenously determined values for market power parameter, we found that meat processors concerning the buyers’ market for slaughtered livestock behave consistently with Cournot conjectures.

Competitive Analysis and Market Power of China’s Soybean Import Market

Palavras-chave: Cournot competition; Market power; Meat processing industry; New empirical industrial organisation (NEIO); Ukraine; Livestock Production/Industries; Marketing.

Ano: 2011

URL: http://purl.umn.edu/114782

Song, Baohui; Marchant, Mary A.; Reed, Michael R.; Xu, Shuang.

This research conducts a competitive structure analysis of the Chinese soybean import market which leads to the hypothesis that China’s soybean importers may have stronger market power in China’s soybean import market. Then, this research develops and simultaneously estimates a two-country partial equilibrium trade model to test U.S.-China market power of soybean trade. The empirical result supports our hypothesis that Chinese soybean importers have stronger market power relative to U.S. soybean exporters. This Chinese market power can be countered by U.S. and South American companies through developing new and expanding existing markets for soybeans throughout the world and investing in Chinese soybean storage and crushing capacity.

Tipo: Journal Article

Palavras-chave: Chinese soybean import market; Competitive structure analysis; Market power; Two-country partial equilibrium trade model; International Relations/Trade; Marketing; Research Methods/ Statistical Methods; Q10; Q12; Q17.

Ano: 2009

URL: http://purl.umn.edu/53744

Production Contracts and the Spot Market Price of Hogs

Key, Nigel D..

The increasing use of production contracts in the hog sector has reduced the number of spot market transactions, raised concerns about price manipulation and helped to spur legislation requiring price reporting by packers. Using data from the 2002 and 2007 Censuses of Agriculture, this study looks for evidence of market manipulation by examining whether the local prevalence of contracting affects the average price received by independent producers. The empirical approach uses a fixed-effects model to examine whether the change in the prevalence of contracting is correlated with the change in the spot market price received by individual farmers. This approach controls for unobservable time-invariant individual and county characteristics, such as product...

U.S. FRESH PRODUCE MARKETS: MARKETING CHANNELS, TRADE PRACTICES, AND RETAIL PRICING BEHAVIOR

Palavras-chave: Production contracts; Alternative marketing arrangements; Market power; Spot market price; Hogs; Agribusiness; Agricultural and Food Policy; Farm Management; Industrial Organization; Livestock Production/Industries; Marketing; Production Economics.

Ano: 2010

URL: http://purl.umn.edu/61020

Dimitri, Carolyn; Tegene, Abebayehu; Kaufman, Phillip R..

Retail consolidation, technological change in production and marketing, and growing consumer demand for produce have altered the traditional market relationships between producers, wholesalers, and retailers. Increasingly, produce suppliers are asked to provide additional marketing services and incentives in exchange for volume purchases and other commitments by buyers. This report synthesizes the results from a multiphase project that examined the dynamics of produce marketing, the produce shipper-retailer relationship, and how changes in the produce market affect the relative market influence of producers, retailers, and consumers.

Measuring market power in the Greek food and beverages manufacturing industry

Palavras-chave: Fresh fruits and vegetables; Fresh produce; Fresh produce marketing channels; Supermarket; Market power; Competition; Trading practices; Crop Production/Industries; Industrial Organization.

Ano: 2003

URL: http://purl.umn.edu/33907

Rezitis, Anthony N.; Kalantzi, Maria A..

This paper measures the degree of market power of the Greek food and beverages manufacturing industry over the period 1983–2007 at the three-digit SIC level. The present study also estimates the “deadweight” loss and the reduction of consumers’ income due to the possible existence of market power in the Greek food and beverages manufacturing industry. Based on Bresnahan’s (1989) conjectural variation model, three different approaches are used to investigate competitive conditions of the Greek food and beverages manufacturing industry. The first approach assesses the extent of market power of the whole industry over the period 1983–2007; the second approach tests the degree of market power in each one of the nine sectors of the industry over the whole...

Pricing and Policy Problems in the Northeast Fluid Milk Industry

Palavras-chave: Conjectural variation; Greek food and beverages manufacturing industry; Market power; Welfare losses; Agribusiness; D43; D60; L66; Q10.

Ano: 2011

URL: http://purl.umn.edu/114809

First filter test of market power in Finnish food retailing sector

Cotterill, Ronald W..

This article documents the need for reform of milk pricing in the Northeast. The New York price gouging law can be recast as a fair share law. This new milk policy "kills two birds with one stone." It corrects regional inequities in raw milk pricing by reforming the pricing of milk at retail by limiting and redistributing excessive retail margins to farmers and consumers. The fair share policy relieves allocative price inefficiency, improves the performance of the federal milk market order pool, and improves the general performance of the Northeast dairy farming and fluid milk industries.

Tipo: Journal Article

Palavras-chave: Market power; Bargaining; Over-order premiums; Fair share pricing; Livestock Production/Industries.

Ano: 2006

URL: http://purl.umn.edu/10211

Niemi, Jyrki S.; Xing, Liu.

Buyer power and competition policy in food supply chains has emerged as an important economic issue and a highly sensitive item on the policy agenda all around the world. Claims that large retailers and food companies are depressing farm prices because of their market power have been made in many countries around the world (Swinnen and Vandeplas, 2009). Arising concentration of retailer sector increases the concern of existence and gradual growth of buyer power in this sector. The key reason is that the growing buyer power may have the effect of considerably distorting both retail and producer competition, and eventually it may damage economic welfare. In Finland, the increased concentration of the retail sector, with fewer outlets and the growth of the...

Local Monopsony Power in the Market for Broilers - Evidence from a Farm Survey

Palavras-chave: Concentration; Market power; VECM; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Food Consumption/Nutrition/Food Safety; Labor and Human Capital.

Ano: 2010

URL: http://purl.umn.edu/95336

Key, Nigel D.; MacDonald, James M..

The exercise of monopsony power by broiler processing firms is plausible because production occurs within localized complexes, which limits the number of integrators with whom growers can contract. In addition, growers face distinct hold-up risks as broiler production requires a substantial investment in specific assets and most production contracts do not involve long-term purchasing commitments by integrators. This paper provides an initial exploration of the links between the local concentration of broiler integrators and grower compensation under production contracts using data from the 2006 broiler version of USDA’s Agricultural Resource Management Survey. Results of this preliminary study, which accounts for characteristics of the operation and...

SPATIAL COMPETITION AND PRICING IN THE AGRICULTURAL CHEMICAL INDUSTRY: EMPIRICAL EVIDENCE FROM GEORGIA

Palavras-chave: Poultry; Broilers; Market power; Monopsony; Production contracts; Livestock Production/Industries; Marketing.

Ano: 2008

URL: http://purl.umn.edu/6073

Hall, R. Lee; Dorfman, Jeffrey H.; Gunter, Lewell F..

Three models of spatial competition are tested on retail price data for the agricultural chemical industry. Three empirical tests find no evidence of any spatial competition using data from sixty-five retailers and twelve different chemicals. Demand and supply-side variables have statistically significant, but economically trivial impacts on retail chemical prices. These results point to a virtually complete control of retail prices by the chemical manufacturers, likely through the rebate program they offer retailers. The oligopoly structure of the chemical manufacturing industry makes such control possible. The results suggest that consolidation of retailers or distributors will not have anti-competitive effects since price competition is essentially...

Imperfect competition in the fresh tomato industry

Palavras-chave: Agricultural chemicals; Market power; Spatial competition; Industrial Organization.

Ano: 2003

URL: http://purl.umn.edu/18984

Hadj Djelloul, Mohammed; Requillart, Vincent; Simioni, Michel.

In this paper, we analyse the market power of the retail industry in the French tomato market. Following the methods developed in the New Empirical Industrial Organization, we develop a structural model of this industry. The analysis is based on detailed data on final consumption and prices at both shipper and consumer levels for two types of tomatoes in France. The structural model is composed of a system of demand equation and supply equation. Supply equation includes a term that represents the market power of the retail sector. We use different models of demand in order to test the robustness of our results. We show that i) elasticity of demand varies during the year ii) the retail sector exercise only a "moderate" market power iii) the estimated...