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Market power in food industry in selected EU Member States

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Abstract

This report provides an overview of various market power indicators within the food industry in selected Member States (MS) in the EU. In addition, the report aims to examine whether the alternative market power indicators are qualitatively comparable proxies to measure market power in the food industry and to discuss the potential implications for the EU’s directive on unfair trading practices (UTPs). The report analyses the market power in-depth for the year 2016 and studies its dynamics over the period 2006-2017 in the selected MS. The report considers four alternative measures of market power: the concentration ratio (CR4), the Herfindahl-Hirschman Index (HHI), markups as well as turnover size, which is the market power measure used in the EU’s UTP directive. The report analyses are based on the firm-level accounting data available from the Orbis database. Due to limited data availability in some countries, the report considers 10 MS for calculation of the CR4, HHI and turnover indicator, and 7 MS for estimation of markups. The analyses are carried out for different (more aggregated) sectors of the food industry—i.e., retail, wholesale and manufacturing—, as well as for disaggregated subsectors within the wholesale and manufacturing sectors.

Suggested Citation

  • NES Kjersti & COLEN Liesbeth & CIAIAN Pavel, 2021. "Market power in food industry in selected EU Member States," JRC Research Reports JRC125087, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc125087
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC125087
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    Cited by:

    1. Lukáš Čechura & Tinoush Jamali Jaghdani, 2021. "Market Imperfections within the European Wheat Value Chain: The Case of France and the United Kingdom," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    2. Fanzo, Jessica & Haddad, Lawrence & Schneider, Kate R. & Béné, Christophe & Covic, Namukolo M. & Guarin, Alejandro & Herforth, Anna W. & Herrero, Mario & Sumaila, U. Rashid & Aburto, Nancy J. & Amuyun, 2021. "Viewpoint: Rigorous monitoring is necessary to guide food system transformation in the countdown to the 2030 global goals," Food Policy, Elsevier, vol. 104(C).
    3. Simon Pröll & Heidelinde Grüneis & Franz Sinabell, 2022. "Market Concentration, Producer Organizations, and Policy Measures to Strengthen the Opportunities of Farmers for Value Addition—Empirical Findings from the Austrian Meat Supply Chain Using a Multi-Met," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    4. Čechura, Lukáš & Jamali Jaghdani, Tinoush, 2021. "Market imperfections within the European wheat value chain: The case of France and the United Kingdom," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(9).

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    Keywords

    food chain; unfair trading practices (UTP); market power;
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