Monopolies

Many food- and agriculture-related industries have high market concentration, which occurs when a small number of companies account for a [Page 988]large percentage of industry sales. Although rare, a pure monopoly exists when only one seller exists in a given market. A market that is highly concentrated has many of the characteristics of a monopoly, namely a low quantity of goods and services supplied at high prices to farmers and consumers. This monopoly power is seen among agricultural producers, suppliers of seed, fertilizer and other inputs, food processors, food retailers, and other food and agriculture sectors. This entry discusses the nature of monopoly markets and firms, their impacts on society, regulations of monopolies, and examples in the food and agriculture industry.