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Cited by 13Economics of Agriculture and Food MarketsMerger and Competition AnalysisAgricultural economics and policies

The role of market concentration in the agrifood industry

Open access
Hernandez, Manuel A., Espinoza, Alvaro, Berrospi, Maria Lucia, Deconinck, Koen, Swinnen, Johan, Vos, Rob·2023
DOI 10.2499/p15738coll2.136567
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Abstract

The role of market concentration and potential market power exertion in the agri-food industry is a topic of longstanding interest and concern to policymakers, stakeholders, and researchers. This study provides a comprehensive overview of recent trends in market concentration upstream, midstream, and downstream the agri-food industry at the global, regional, and country level, and assesses how and to what extent concentration could be affecting market conduct and performance of food systems in developed and developing countries. The analysis additionally discusses, to the extent detectable, implications of concentration, including vertical and horizontal integration that favor concentration, for food security and nutrition and environmental sustainability. While market concentration in the agri-food industry has increased across most segments, the evidence on market power exertion is inconclusive. Several knowledge and data gaps are identified and additional research is necessary to derive more general conclusions and policy recommendations.

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  • The CR4 for grocery retail is over 40% in many countries, including the US (approximately 40%), South Africa (approximately 54%), and France (50%).

    “The CR4 for grocery retail is over 40 % in many countries, including the US (approximately 40 %), South Africa (approximately 54 %), and France (50 %) (Hernandez et al. 2023).”

    From Corporate concentration and power matter for agency in food systems (2025) · cites this paper as Hernandez et al. 2023

    Figure 2.7 reports approximately 40% for the US, 54% for South Africa, and 50% for France, but labels these figures as concentration among supermarkets, not grocery retailers. Figure 2.6 separately reports grocery-retailer concentration; its US figure is 27.8% in 2021. The claim uses the paper’s supermarket figures for a broader retail category. (LLM, conf=0.90)

    Experimental — accuracy not yet measured

  • Data limitations and complexities in some of these markets make it difficult to numerically assess the extent to which the widespread and systematic exercise of buyer power takes place in food systems, especially with respect to small-scale producers.

    “Data limitations and complexities in some of these markets make it difficult to numerically assess the extent to which the widespread and systematic exercise of buyer power takes place in food systems, espe­ cially with respect to small-scale producers (Hernandez et al. 2023; Deconinck 2021).”

    From Corporate concentration and power matter for agency in food systems (2025) · cites this paper as Hernandez et al. 2023

    Section 3.3 (page unavailable) says data are more available for developed-country markets, research in developing countries is scarcer, and evidence on buyer power is mixed. The discussion of estimation methods (section labeled “Seeds,” page unavailable) also says different assumptions can produce substantially different estimates. These passages support the difficulty of assessing buyer power, but do not specifically establish that numerical assessment is especially difficult for small-scale producers. (LLM, conf=0.82)

    Experimental — accuracy not yet measured

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Cites

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1 of the 149 references couldn’t be matched to a known paper.

Research works printed but not linked: 16

  1. AMS-USDA. (2022). Competition in Food Retail and Distribution Markets and Access for Agricultural Producers and Small and Midsized Food Processors. Agricultural Marketing Service, USDA. Federal Register, Vol. 87, No.
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  12. Reardon, T. & Timmer, C.P. (2007). Transformation of markets for agricultural output in developing countries since 1950: How has thinking changed? Chapter 55 in R.E. Evenson and P. Pingali (eds.), Handbook of Agricultural Economics, 3: Agricultural Development: Farmers, Farm Production and Farm Markets, 2808-2855, Amsterdam: Elsevier Press.
  13. Sexton, R. (2017). Unfair Trade Practices in the Food Supply Chain: Defining the Problem and the Policy Issues, in Unfair Trading Practices in the Food Supply Chain: A Literature Review on Methodologies, Impacts and Regulatory Aspects, Di Marcantonio, F. & Ciaian P. (eds.).
  14. US Department of Justice. (2012). Competition and Agriculture: Voices from the Workshops on Agriculture and Antitrust Enforcement in our 21st Century Economy and Thoughts on the Way Forward. Available at: http://www.justice.gov/ag/speeches/2010/ag-speech-100312.html.
  15. Wohlgenant, M. (2013). Competition in the US Meatpacking Industry. Annual Review of Resource Economics Vol 5(1): 1-12.
  16. Zhou, Q., Zhao, L., Zhang, L., Xiao, Q., Wu, T., Visscher, T., Zhao, J., Xin, J., Yu, X., Xue, H., Li, H., Pan, J. & Jia, P. (2021). Neighborhood supermarket access and childhood obesity: A systematic review. Obesity Reviews, February 22 Suppl 1 (Suppl 1): e12937. doi: 10.1111/obr.12937. 1997- 2012- 2021 Global Euromonitor International At the country level, CR4 index in China increased between 2012 and 2021 (from 18% to 35.8%), where Wuhai He Ye Chemical Engineering Co Ltd has continued to consolidate its position as the major market player. In the US and Germany, in contrast, the concentration ratio decreased but still remain over 40%, while in Brazil it has remained around 9-10%. 2012- 2021 Country level (main producing countries) Euromonitor International Seeds (crop seeds and biotechnology) Market share of the four largest firms in the global seeds market increased from 21% in 1994 to 54% in 2009, based on firm sales data. 1994- 2009 Global ERS-USDA, Fuglie et al. (2011) Global CR4 index of 58% in 2011 using sales data, which further increased to 65% in 2014. Bayer CropScience-Monsanto (Germany-US) explains 30.1% of the global sales followed by DuPont-Dow (US), Syngenta (Switzerland), and Vilmorin & Cie (France) with 22.7%, 7.8%, and 4.4%, respectively. 2011- 2014 Global Action Group on Erosion, Technology, and Concentration (ETC), IPES- Food (2017) Maize In maize, the CR4 index is 83%, where Monsanto alone has a 35.5% share and DuPont Pioneer another 34.5%. 2014 US · DOI

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Authors
Hernandez, M. A., Espinoza, A., Berrospi, M. L., Deconinck, K., Swinnen, J., & Vos, R.
Affiliations
CGIAR (FR)
ORCID
Publisher
International Food Policy Research Institute
Published
2023
DOI
10.2499/p15738coll2.136567
OpenAlex
W4320009496
Cited by
13
References
149
Citations by year
2026: 6 · 2025: 5 · 2024: 2
Type
report
Language
en
Open access
Licence
other-oa
Locations
  • CGSPace A Repository of Agricultural Research Outputs (Consultative Group for International Agricultural Research) (submittedVersion, other-oa)
  • RePEc: Research Papers in Economics (submittedVersion)
  • IFPRI E-brary (International Food Policy Research Institute) (submittedVersion, other-oa)
  • International Food Policy Research Institute (International Food Policy Research Institute) (submittedVersion, other-oa)
Funders
  • International Center for Agricultural Research in the Dry Areas
  • Consortium of International Agricultural Research Centers
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
  • Social Sciences › Safety Research › Agricultural economics and policies
Keywords
market concentration, agri-food industry, market power, vertical integration, horizontal integration, food systems, food security, nutrition, environmental sustainability, developed and developing countries, food supply chain

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