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Abstract
Market concentration, and its impact on competition, has attracted growing public scrutiny as well as several Federal policy initiatives. Critics argue that increased concentration has led to higher consumer prices, lower prices paid for farm commodities, increased corporate profits, reduced wages, less innovation, and waning productivity growth. The issues surrounding concentration extend to agribusiness, particularly to three agribusiness sectors where concentration has increased over time: seeds, meatpacking, and food retailing. This report details how consolidation proceeded in each sector—with attention to the important driving forces—and the effects on prices and innovation. Because mergers among firms have played a role in each sector’s consolidation, the report also describes Federal antitrust policy regarding mergers and its implementation in these sectors.