Broiler industry from Mato Grosso do Sul: market structure and concentration

Abstract

This paper seeks to verify the concentration rate in broiler’s industry and aid the decision-making process of economic agents working in the production chain to achieve greater competitiveness and delineate public policies by public agents, besides being an instrument to the productive chain, filling the lack of studies on the problematic approached. The article analyzes supply and demand conditions on broiler's production chain and market structure in Mato Grosso do Sul state. We use the concentration ratio tests of type CR2, Herfindahl- Hirschman (HHI) Index and Theil's Entropy Index (ET). As a result, we see the oligopsonistic structures in the link upstream and oligopoly in the link downstream of the production chain, facts that subject the producer to negotiate in an unfavourable perspective of loss of bargaining power and business competitiveness.

Keywords

• broiler industry
• oligopoly
• imperfect markets