International Trade In Dairy Products: Processors Market Power
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In the past two decades there has been a considerable amount of research conducted
into the international price and trade effects of government intervention in the dairy
industries of several countries. Recently, the conclusions of those studies have been
questioned owing to the rising concentration in the processor sector. Since processors
are increasingly multinational in nature and a few of them are operating around the
globe, there is a possibility that the processors will influence both the farm and retail
prices through their having market power.