The U.S. agricultural sector suffers from abnormally high levels of concentration. Most economic sectors have concentration ratios around 40%, meaning that the top four firms in the industry control 40% of the market. If the concentration ratio is above 40%, experts believe competition can be threatened and market abuses are more likely to occur: the higher the number, the bigger the threat. The concentration ratios in the agricultural sector are shocking. -Four companies own 83.5% of the beef market. -The top four firms own 66% of the hog industry. -The top four firms control 58.5% of the broiler chicken industry. -In the seed industry, four companies control 50% of the proprietary seed market and 43% of the commercial seed market worldwide. -When it comes to genetically engineered (GE) crops, just one company, Monsanto, boasts control of over 85% of U.S. corn acreage and 91% of U.S. soybean acreage.
Posted on: Wed, 16 Jul 2014 02:53:40 +0000
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