2017 Summer - Consolidation and competition in agricultural markets

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FPJ1404C - MacDonald, JM (2017), Consolidation, Concentration and Competition in the Food System

FPJ1404C - MacDonald, JM (2017), Consolidation, Concentration and Competition in the Food System, in Farm Policy Journal, vol. 14, no. 4, Summer 2017, pp. 23-35, Surry Hills, Australia.

Agriculture is consolidating, but it is not very concentrated, because there are still many producers of almost all specific commodities. However, farms do face high and growing concentration in many markets with only a few suppliers of inputs or services or only a few buyers of farm products. Rising concentration across the US economy has become a matter of widespread comment and concern in recent years. Some public policies are directly concerned with concentration, primarily the effect of concentration on competition. However, farm consolidation also affects the design and effectiveness of farm, trade, and environmental policies that are not directly concerned with concentration or consolidation.

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