Concentration in Seed and Biotech Markets: Extent, Causes, and Impacts



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https://tapipedia.org/sites/default/files/annurev-resource-102319-100751.pdf
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Type: 
journal article
Journal: 
Annual Review of Resource Economics
Pages: 
129–147
Volume: 
12
Year: 
2020
Author(s): 
Deconinck K.
Publisher(s): 
Description: 

The merger of Dow and DuPont, the acquisition of Syngenta by Chem- China, and the acquisition of Monsanto by Bayer have recently reshaped the global seed and biotech industry and caused concern about growing mar- ket concentration. This review documents market concentration in seed and agricultural biotech markets and discusses its causes and impacts. The avail- able 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 protec- tion chemicals explain much of the observed structural changes in the in- dustry, and new complementarities may be emerging with digital agricul- ture. 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.

Publication year: 
2020
Keywords: 
seed industry
seed markets
Agricultural biotechnology
concentration
market power
competition