Market Power in the Irish Beef Processing Industry

Market Power in the Irish Beef Processing Industry

Irish beef processors and cattle farmers have been involved in a lasting controversy on power asymmetry. This paper estimates the degree of market power in the Irish beef processing industry. The New Empirical Industrial Organization approach is extended for estimation, and the market power is testi...

Full description

Bibliographic Details
Main Authors: Rao Fu, Chenguang Li, Liming Wang
Format: Article
Language:English
Published: MDPI AG 2021-06-01
Series:Sustainability
Subjects:
market power
Irish beef
beef processing
Online Access:https://www.mdpi.com/2071-1050/13/11/6453
id doaj-798fe54f80a3420780eb094b2fc2783b
record_format Article
spelling doaj-798fe54f80a3420780eb094b2fc2783b2021-06-30T23:26:29ZengMDPI AGSustainability2071-10502021-06-01136453645310.3390/su13116453Market Power in the Irish Beef Processing IndustryRao Fu0Chenguang Li1Liming Wang2School of Agriculture and Food Science, University College Dublin, D04 V1W8 Dublin 4, IrelandSchool of Agriculture and Food Science, University College Dublin, D04 V1W8 Dublin 4, IrelandSchool of Economics and Management, Beijing University of Technology, Beijing 100124, ChinaIrish beef processors and cattle farmers have been involved in a lasting controversy on power asymmetry. This paper estimates the degree of market power in the Irish beef processing industry. The New Empirical Industrial Organization approach is extended for estimation, and the market power is testified by conjectural elasticity with supply and demand functions, indicating that beef processors exert a significant market power on cattle farms. Export-orientation and high subsidies are two outstanding features in the Irish beef industry. Exports and subsidies are shown in this paper to have an insignificant influence on market power. This paper confirms that beef processors can exercise market power on farmers to lower prices below the marginal cost.https://www.mdpi.com/2071-1050/13/11/6453market powerIrish beefbeef processing
collection DOAJ
language English
format Article
sources DOAJ
author Rao Fu
Chenguang Li
Liming Wang
spellingShingle Rao Fu
Chenguang Li
Liming Wang
Market Power in the Irish Beef Processing Industry
Sustainability
market power
Irish beef
beef processing
author_facet Rao Fu
Chenguang Li
Liming Wang
author_sort Rao Fu
title Market Power in the Irish Beef Processing Industry
title_short Market Power in the Irish Beef Processing Industry
title_full Market Power in the Irish Beef Processing Industry
title_fullStr Market Power in the Irish Beef Processing Industry
title_full_unstemmed Market Power in the Irish Beef Processing Industry
title_sort market power in the irish beef processing industry
publisher MDPI AG
series Sustainability
issn 2071-1050
publishDate 2021-06-01
description Irish beef processors and cattle farmers have been involved in a lasting controversy on power asymmetry. This paper estimates the degree of market power in the Irish beef processing industry. The New Empirical Industrial Organization approach is extended for estimation, and the market power is testified by conjectural elasticity with supply and demand functions, indicating that beef processors exert a significant market power on cattle farms. Export-orientation and high subsidies are two outstanding features in the Irish beef industry. Exports and subsidies are shown in this paper to have an insignificant influence on market power. This paper confirms that beef processors can exercise market power on farmers to lower prices below the marginal cost.
topic market power
Irish beef
beef processing
url https://www.mdpi.com/2071-1050/13/11/6453
work_keys_str_mv AT raofu marketpowerintheirishbeefprocessingindustry
AT chenguangli marketpowerintheirishbeefprocessingindustry
AT limingwang marketpowerintheirishbeefprocessingindustry
_version_ 1721351344482156544

Similar Items