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What are the implications of concentration across the sectors related to agriculture?

Ruihan Xia

Abstract


In the past few decades, the agricultural market has experienced a sustained wave of mergers and acquisitions, leading to a gradual concentration of industry control in the hands of a few multinational corporations. This article takes the M&A process of Monsanto as a
starting point to explore the profound impact of this concentrated trend on farmers, consumers, and the ecological environment. Research has
shown that although large enterprises gain cost advantages and higher profits through scale expansion, this concentration trend also brings
problems such as limited market competition, decreased bargaining power of farmers, and ecosystem degradation. The article also analyzes
the shortcomings of the current regulatory system in dealing with cross-border corporate mergers, and proposes the necessity of strengthening
governance mechanisms.

Keywords


Agribusiness Consolidation; Market Concentration; Monsanto; Farmers; Consumers; Sustainability; Mergers and Acquisitions

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References


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DOI: http://dx.doi.org/10.18686/fm.v10i4.14104

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