Measuring the Degree of Oligopsony Power in the Brazilian Raw Milk Market

This study sets out to measure the degree of oligopsony power in the Brazilian raw milk market. The analysis was undertaken in fifteen producing regions between January 1997 and December 2011. The results led to the authors rejecting the monopsony hypothesis. In six regions, the hypothesis of perfect competition was not rejected. In the other nine, the conduct parameter estimates were very close to zero. These results contradict both the empirical literature and the reports produced by Parliamentary Inquiries in the early 2000s, which found suspicions of market power in dairies in several Brazilian states. Although the dairy industry concentrates on the marketing of Brazilian raw milk, the survey results indicate that the behavior of firms is similar to that of a perfect competition market model.

Issue Date:
May 01 2014
Publication Type:
Journal Article
DOI and Other Identifiers:
(ISSN # 1559-2448) (Other)
Record Identifier:
PURL Identifier:
Published in:
International Food and Agribusiness Management Review, Volume 17, Issue 2
Page range:
Total Pages:
JEL Codes:
L12; L13; L66
The IFAMR is published quarterly by the International Food and Agribusiness Management Association.
Series Statement:
Volume 17
Issue 2

 Record created 2017-04-01, last modified 2018-01-22

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