Concentration in Seed Markets Potential Effects and Policy Responses

Concentration in Seed Markets Potential Effects and Policy Responses
Author: OECD
Publisher: OECD Publishing
Total Pages: 236
Release: 2018-12-04
Genre:
ISBN: 9264308369

Recent mergers in the seed industry have led to concerns about market concentration and its potential effects on prices, product choice, and innovation. This study provides new and detailed empirical evidence on the degree of market concentration in seed and GM technology across a broad range ...

Concentration in Seed and Biotech Markets

Concentration in Seed and Biotech Markets
Author: Koen Deconinck
Publisher:
Total Pages: 0
Release: 2020
Genre:
ISBN:

The merger of Dow and DuPont, the acquisition of Syngenta by ChemChina, and the acquisition of Monsanto by Bayer have recently reshaped the global seed and biotech industry and caused concern about growing market concentration. This review documents market concentration in seed and agricultural biotech markets and discusses its causes and impacts. The available evidence suggests that concentration in seed markets varies strongly by crop and by country, while markets for biotech traits are considerably more concentrated. Complementarities between seed, biotech, and crop protection chemicals explain much of the observed structural changes in the industry, and new complementarities may be emerging with digital agriculture. Although growing concentration might in theory lead to higher prices and less innovation, evidence on this is currently limited; this tendency is also in part offset by the remedies imposed by competition authorities.

The Impact of Seed Industry Concentration on Innovation

The Impact of Seed Industry Concentration on Innovation
Author: David Schimmelpfennig
Publisher:
Total Pages: 0
Release: 2012
Genre:
ISBN:

Agricultural research drives increases in agricultural productivity, and the number of private agricultural input firms has been declining. The empirical relationship between the number of firms doing applied biotechnology crop research and the amount of research output they produce is investigated in a research profit function model. Increases in seed industry concentration have reduced biotech research intensity in the United States in the 1990s. Concentration and research are simultaneously determined and are influenced by the appropriability of research results and the state of technological opportunity.

The role of market concentration in the agrifood industry

The role of market concentration in the agrifood industry
Author: Hernandez, Manuel A.
Publisher: Intl Food Policy Res Inst
Total Pages: 98
Release: 2023-02-08
Genre: Political Science
ISBN:

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.

Concentration and Power in the Food System

Concentration and Power in the Food System
Author: Philip H. Howard
Publisher: Bloomsbury Publishing
Total Pages: 217
Release: 2016-02-25
Genre: Social Science
ISBN: 1472581148

Nearly every day brings news of another merger or acquisition involving the companies that control our food supply. Just how concentrated has this system become? At almost every key stage of the food system, four firms alone control 40% or more of the market, a level above which these companies have the power to drive up prices for consumers and reduce their rate of innovation. Researchers have identified additional problems resulting from these trends, including negative impacts on the environment, human health, and communities. This book reveals the dominant corporations, from the supermarket to the seed industry, and the extent of their control over markets. It also analyzes the strategies these firms are using to reshape society in order to further increase their power, particularly in terms of their bearing upon the more vulnerable sections of society, such as recent immigrants, ethnic minorities and those of lower socioeconomic status. Yet this study also shows that these trends are not inevitable. Opposed by numerous efforts, from microbreweries to seed saving networks, it explores how such opposition has encouraged the most powerful firms to make small but positive changes.

Genetically Engineered Crops

Genetically Engineered Crops
Author: National Academies of Sciences, Engineering, and Medicine
Publisher: National Academies Press
Total Pages: 607
Release: 2017-01-28
Genre: Science
ISBN: 0309437385

Genetically engineered (GE) crops were first introduced commercially in the 1990s. After two decades of production, some groups and individuals remain critical of the technology based on their concerns about possible adverse effects on human health, the environment, and ethical considerations. At the same time, others are concerned that the technology is not reaching its potential to improve human health and the environment because of stringent regulations and reduced public funding to develop products offering more benefits to society. While the debate about these and other questions related to the genetic engineering techniques of the first 20 years goes on, emerging genetic-engineering technologies are adding new complexities to the conversation. Genetically Engineered Crops builds on previous related Academies reports published between 1987 and 2010 by undertaking a retrospective examination of the purported positive and adverse effects of GE crops and to anticipate what emerging genetic-engineering technologies hold for the future. This report indicates where there are uncertainties about the economic, agronomic, health, safety, or other impacts of GE crops and food, and makes recommendations to fill gaps in safety assessments, increase regulatory clarity, and improve innovations in and access to GE technology.

Comment on Intellectual Property, Concentration and the Limits of Antitrust in the Biotech Seed Industry

Comment on Intellectual Property, Concentration and the Limits of Antitrust in the Biotech Seed Industry
Author: F. Scott Kieff
Publisher:
Total Pages: 0
Release: 2012
Genre:
ISBN:

This comment was filed with the Department of Justice Antitrust Division on December 31, 2009, as "Comments Regarding Agriculture and Antitrust Enforcement Issues in Our 21st Century Economy" in response to the DOJ/USDA request for public comments for the agencies' joint workshops on antitrust issues in the agricultural sector. Regarding firm size and integration, it must be kept in mind that the agriculture industry in the U.S. has, for good reasons, moved beyond the historic, pastoral image of small family farms operating in quiet isolation, devoid of big business and modern technologies. The genetic traits that give modern seeds their value - traits that confer resistance to herbicide and high yields, for example - are often developed through processes that are technologically-advanced, time- and money-intensive, risky investments, and subject to various layers of regulation, and, at least for some participants in this market, these processes are likely to be more efficiently and effectively conducted within large agribusiness companies having enormous research and development budgets and significant expertise in managing complex business and legal operations. This short comment discusses the implications for industry structure in the US biotech seed industry of the importance of intellectual property and innovation. Contrary to some commentators and the implicit underpinnings of the DOJ/USDA workshops, neither concentration nor typical licensing practices in the industry are cause for concern, and we counsel caution before intervening in this well-functioning and innovative market. From the public record it appears that the impetus for much of today's antitrust interest in the biotech seed industry boils down to efforts to intervene into business disputes between large and sophisticated parties. The inherent uncertainty regarding the economic consequences of specific conduct, coupled with competitors' poor incentives and the huge costs of error, counsel strongly against antitrust intervention without strong empirical evidence that the conduct has reduced competition and harmed consumers in the form of higher prices, lower quality, or reduced innovation.

Product Differentiation Choices and Biotechnology Adoption

Product Differentiation Choices and Biotechnology Adoption
Author:
Publisher:
Total Pages: 115
Release: 2014
Genre:
ISBN:

The advances in agricultural biotechnology have brought opportunities and challenges to the agricultural input industries including the seed sector over the last few decades. The U.S. seed market has experienced major structural adjustments during this period. Since 1996 the rapid adoption of biotechnology in U.S. agriculture has been associated with mergers and acquisitions, leading to a more concentrated seed/biotech industry. It raises questions about the possible exercise of market power in the U.S. biotech seed industry. Will an integrated biotech seed company differ from an independent one in choosing the line of seed products? How do U.S. farmers evaluate different types of corn seeds? And how are the welfare gains from technological improvement distributed among market participants? This dissertation tried to answer these questions by investigating the product line choices of seed companies under imperfect competition and farmers' adoption of conventional and genetically modified (GM) seeds in the U.S. corn seed market during 2000-2007. In Chapter 2, I examine seed firms' product choices by considering concentration in the upstream biotech market, geographical competition, firm and market characteristics, and technological advancement, by using a system dynamic panel data model. I find that market competition has discrepant impacts on the product choices of biotech firms and independent companies. Firms' willingness to carry more varieties also differs by their market shares. In Chapter 3, I construct a multiple discrete choice model with random coefficients to estimate farmers' demand. I further impose a flexible correlation structure among products' observable characteristics, and panel effects on individuals' seed choices. I use the simulated Generalized Method of Moments for estimation. Results indicate that farmers' preferences are shifted away from conventional and single traited seeds to newly-introduced multiple traited ones. Their preferences could also become unstable by technology development. In Chapter 4, I investigate the welfare distribution of biotechnology advances among market participants and the welfare changes when biotech firms specialize in GM seeds and independent firms specialize in conventional seeds. I find that the benefits of biotechnology advances are received mostly by medium-to-large farms and a few biotech companies. Biotech firms also benefit from market segmentation.