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Abstract

The dairy industry productive chain is among the most important domestic agricultural and cattle raising products, accounting for a significant part of agribusiness. In the last years, this sector has undergone significant structural changes, with increased participation of relatively smaller enterprises and reduced number of larger enterprises in the market. The aim of this work is to understand the dynamics between industry and retail performance and the effect on the prices paid to dairy producers. Specifically, this work aims to calculate the sector’s concentration indexes and causality indexes between the prices paid to the producer, the industry markup and the retail prices. Based on price temporal series, a VAR model was estimated and the Granger causality test was carried out. The results obtained reinforce that there was a decrease in concentration in the sector and the causality tests indicate low oligopsony power in retail and industry.

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