Agriculture and Antitrust Enforcement Brent Hueth, Director University of Wisconsin Center for Cooperatives.

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Presentation transcript:

Agriculture and Antitrust Enforcement Brent Hueth, Director University of Wisconsin Center for Cooperatives

Consolidation Concentration ratios of grocery store sales Concentration ratios of 4 largest meat processing firms

Farm Prices Rising More Slowly Than Overall Prices Indices of Prices Received by Farmers for All Farm Products and Economy Wide Prices,

Consumers Spending Less on Food Household expenditures on food as a share of disposable income,

Farms Getting More Efficient Number of farms (1000’s) that account for 50% of total farm sales nationally.

Government Responds Model Producer Protection Act (2000) GAO Report (GAO R Concentration in Agriculture, 2009) DOJ/USDA Workshops (2010)

DOJ/USDA Antitrust Workshops

Cooperatives, DOJ, and Antitrust Enforcement Adversaries or Allies?

Two Views Sapiro “We don’t say that the purpose of cooperative marketing is to introduce any economy in the physical handling of grain… we are interested in raising the basic level of the price of wheat” Nourse Cooperatives are “…a means to improve the lot of both farmer and consumer by improving the efficiency of the economic machine.”