Agricultural Volatility and Market Power in Food Industry

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Date

29 août 2017

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INRAE


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price volatility market power agricultural inputs agricultural imports


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Carl Gaigné et al., « Agricultural Volatility and Market Power in Food Industry », Archive Ouverte d'INRAE, ID : 10670/1.a1xw5g


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This paper treats on how agricultural prico volatility affect firms in food industry and how they source their input from local suppliers or from international market in a risky environnement. We show that agricultural volatility can rise profit in the downstream sector for more productive firms, at the expense of less productive ones. In addition, we show that import competition on the agricultural sector can lead to lower agricultural prices on the local market than on the international market.

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