Synonyms
Introduction
Vertical integration is the process whereby one firm merges with another firm from which it buys inputs or to which it sells output. Concentration reflects the degree of horizontal integration and defines the extent to which a firm has competitors. The food system in the USA has become increasingly integrated and concentrated during the last 100 years. Economists have long argued that economic factors – most notably economic efficiency – largely explain the increase in vertical integration and concentration in the agrifood industry (MacDonald et al. 2004), but others implicate the exercise of market power and changes in antitrust policy enforcement as explanations (Carstensen 2008; Hendrickson and Heffernan 2002). Concentration and integration (hereafter simply “consolidation”) in the food system raises a number of important ethical issues for farmers, agribusiness firms, and consumers. These ethical issues are...
References
Berry, W. (1990). What are people for? San Francisco: North Point Press.
Blas, J. (2010, August 19). End looms for fertiliser cartels. Financial Times.
Bonanno, A., & Constance, D. H. (2006). Corporations and the state in the global era: The case of seaboard farms in Texas. Rural Sociology, 71(1), 59–84.
Carstensen, P. C. (2008). Buyer power, competition policy, and antitrust: The competitive effects of discrimination among suppliers. Antitrust Bulletin, 53(20), 271–331.
Clifford, S. (2011, January 17). Groceries fill aisles at stores like CVS. New York Times.
Constance, D. H., Kleiner, A., & Rikoon, J. S. (2003). The contested terrain of swine regulation. In J. Adams (Ed.), Fighting for the farm: Rural America transformed (pp. 76–95). University Park: University Press of Pennsylvania.
Constance, D. H., Martinez, F., Aboites, G., & Bonanno, A. (2013). The problems with poultry production and processing. In H. S. James Jr. (Ed.), The ethics and economics of agrifood competition (pp. 99–126). Dordrecht: Springer.
De Schutter, O. (2010). Addressing concentration in food supply chains: The role of competition law in tackling the abuse of buyer power. http://www.srfood.org/images/stories/pdf/otherdocuments/20101201_briefing-note-03_en.pdf. Accessed 13 July 2013.
Drabenstott, M. (1999). Consolidation in U.S. agriculture: The new rural landscape and public policy. Federal Reserve Bank of Kansas City, Economic Review, First Quarter, 63–71.
ETC Group. (2008). Who owns nature? Corporate power and the final frontier in the commodification of life. http://www.etcgroup.org/upload/publication/707/01/etc_won_report_final_color.pdf. Accessed 29 Dec 2011.
Etter, L. (2008, May 27). Lofty prices for fertilizer put farmers in a squeeze. Wall Street Journal, A1.
Foer, A. A. (2010). Agriculture and antitrust enforcement issues in Our 21st century economy (pp. 219–252). Washington, DC: US Department of Agriculture and Department of Justice. http://www.justice.gov/atr/public/workshops/ag2010/dc-agworkshop-transcript.pdf. Accessed 11 July 2011.
Friedmann, H., & McMichael, P. (1989). Agriculture and the state system. Sociologia Ruralis, 29(2), 93–117.
Hatanaka, M., Bain, C., & Busch, L. (2006). Differentiated standardization, standardized differentiation: The complexity of the global agrifood system. In T. Marsden & J. Murdoch (Eds.), Between the local and the global: Confronting complexity in the contemporary agri-food sector (Research in rural sociology and development, Vol. 12, pp. 39–68). London: Elsevier.
Heffernan, W. D., & Constance, D. H. (1990). Concentration of agricultural markets. Columbia: University of Missouri, Department of Rural Sociology.
Heffernan, W. D., Hendrickson, M. K., & Gronski, R. (1999, January 8). Consolidation in the food and agriculture system. Report to the National Farmers Union. http://www.foodcircles.missouri.edu/whstudy.pdf. Accessed 12 Jan 2012.
Hendrickson, M. K., & Heffernan, W. D. (2002). Opening spaces through relocalization: Locating potential resistance in the weaknesses of the global food system. Sociologia Ruralis, 43(4), 347–369.
Hendrickson, M. K., Heffernan, W. D., Howard, P., & Heffernan, J. (2002). Consolidation in food retailing and dairy. British Food Journal, 103(10), 715–728.
Hendrickson, M. K., & James, H. S., Jr. (2005). The ethics of constrained choice: How the industrialization of agriculture impacts farming and farmer behavior. Journal of Agricultural and Environmental Ethics, 18, 269–291.
Hendrickson, M. K., James, H. S., Jr., & Heffernan, W. D. (2008a). Does the world need U.S. farmers even if Americans don’t? Journal of Agricultural and Environmental Ethics, 21, 311–328.
Hendrickson, M. K., Wilkinson, J., Heffernan, W. D., & Gronski, R. (2008b). The Global Food System and Nodes of Power. Report prepared for Oxfam America. http://ssrn.com/abstract=1337273
Howard, P. H. (2009). Visualizing consolidation in the global seed industry: 1996–2008. Sustainability, 1(4), 1266–1287.
Hubbard, K. (2009). Out of hand: Farmers face the consequences of a consolidated seed industry. Washington, DC: National Family Farm Coalition. http://farmertofarmercampaign.com/Out percent20of percent20Hand.FullReport.pdf. Accessed 22 Dec 2011.
James, H. S., Jr. (2013a). Introduction to the ethics and economics of agrifood competition: Connotations, complications and commentary. In H. S. James Jr. (Ed.), The ethics and economics of agrifood competition (pp. 1–21). Dordrecht: Springer.
James, H. S., Jr. (Ed.). (2013b). The ethics and economics of agrifood competition. Dordrecht: Springer.
James, H. S., Jr., & Hendrickson, M. K. (2008). Perceived economic pressures and farmer ethics. Agricultural Economics, 38, 349–361.
James, H. S., Jr., Hendrickson, M. K., & Howard, P. H. (2013). Networks, power and dependency in the agrifood industry. In H. S. James Jr. (Ed.), The ethics and economics of agrifood competition (pp. 99–126). Dordrecht: Springer.
Levins, R. (2002). Collective bargaining for farmers. Choices 4th Quarter, 15–18.
Lusk, J. (2013). The food police: A well-fed manifesto about the politics of your plate. New York: Crown Publishing Group.
Lynn, B. (2006). Breaking the chain: The antitrust case against Wal-Mart. Harper’s Magazine, 313(1874), 29–36.
Lynn, B. (2009). Cornered: The monopoly capitalism and the politics of destruction. Hoboken: Wiley.
Lyson, T. (2004). Civic agriculture: Reconnecting farm, food, and community. Medford: Tufts University Press.
MacDonald, J. M., Perry, J., Ahearn, M., Banker, D., Chambers, W., Dimitri, C., Key, N., Nelson, K., & Southard, L. ( 2004). Contracts, markets, and prices: Organizing the production and use of agricultural commodities (Agricultural Economic Rep. No. 837.). U.S. Department of Agriculture, Economic Research Service.
McIntyre, B., Herren, H., Wakhungu, J., & Watson, R. (2008). Agriculture at a crossroads: Report of the international assessment of agriculture knowledge science and technology for development. Washington, DC: Island Press.
McWilliams, J. (2009). Just food: Where Locavores get it wrong and how we can truly eat responsibly. New York: Little Brown and Company.
Moss, D. (2010). Transgenic seed: The high technology test of antitrust? CPI Antitrust Journal, 2, 1–7.
Moss, D. (2011). Competition and transgenic seed systems. Antitrust Bulletin, 56(1), 81–103.
Peine, E. K. (2013). Trading on pork and beans: Agribusiness and the construction of the Brazil-China-soy-pork commodity complex. In H. S. James Jr. (Ed.), The ethics and economics of agrifood competition (pp. 193–210). Dordrecht: Springer.
Pollack, A. (2010, October 5). Monsanto’s fortunes turn sour. New York Times.
Rohwer, Y., & Westgren, R. (2013). Are ethics and efficiency locked in antithesis? In H. S. James Jr. (Ed.), The ethics and economics of agrifood competition (pp. 37–54). Dordrecht: Springer.
Story, M., Kaphingst, K. M., Robinson-O’Brien, R., & Glanz, K. (2008). Creating healthy food and eating environments: Policy and environmental approaches. Annual Review of Public Health, 29, 253–272.
Stuart, D. (2009). Constrained choice and ethical dilemmas in land management: Environmental quality and food safety in California agriculture. Journal of Agricultural and Environmental Ethics, 22(1), 53–71.
Sykuta, M. E. (2013). The fallacy of “competition” in agriculture. In H. S. James Jr. (Ed.), The ethics and economics of agrifood competition (pp. 55–74). Dordrecht: Springer.
Taylor, C. R. (2010, August 11). Fertilizer cartels: Market power and sustainability issues. Presentation at the annual meeting of the organization for competitive markets, Omaha.
Taylor, C. R., & Domina, D. (2010, May 21). Restoring economic health to contract poultry production. Report prepared for the Joint U.S. Normal: Department of Justice and U.S. Department of Agriculture/GIPSA public workshop on competition issues in the poultry industry.
Thompson, P. B. (2013). Conceptualizing fairness in the context of competition: Philosophical sources. In H. S. James Jr. (Ed.), The ethics and economics of agrifood competition (pp. 23–36). Dordrecht: Springer.
UNCTAD. (2006). Tracking the trend towards market concentration: The case of the agricultural input industry. Geneva: United Nations Conference on Trade and Development. http://www.unctad.org/en/docs/ditccom200516_en.pdf. Accessed 16 July 2006.
US Department of Justice and U.S. Department of Agriculture (USDOJ-USDA). (2010). Proceedings, public workshops exploring competition issues in agriculture. Washington, DC: US Department of Agriculture and Department of Justice. http://www.justice.gov/atr/public/workshops/ag2010/iowa-agworkshop-transcript.pdf. Accessed 16 Jan 2012.
Ver Ploeg, M. (2009). Access to affordable and nutritious food: Measuring and understanding food deserts and their consequences. USDA Economic Research Service, Report to Congress. http://www.ers.usda.gov/media/242675/ap036_1_.pdf. Accessed 5 Aug 2013.
Wilkinson, J. (2002). The final foods industry and the changing face of the global agrofood system: Up against a new technology paradigm and a new demand profile. Sociologia Ruralis, 42, 329–347.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer Science+Business Media Dordrecht
About this entry
Cite this entry
Hendrickson, M., James, H., Heffernan, W.D. (2013). Vertical Integration and Concentration in US Agriculture. In: Thompson, P., Kaplan, D. (eds) Encyclopedia of Food and Agricultural Ethics. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-6167-4_216-1
Download citation
DOI: https://doi.org/10.1007/978-94-007-6167-4_216-1
Received:
Accepted:
Published:
Publisher Name: Springer, Dordrecht
Online ISBN: 978-94-007-6167-4
eBook Packages: Springer Reference Religion and PhilosophyReference Module Humanities and Social SciencesReference Module Humanities
Publish with us
Chapter history
-
Latest
Vertical Integration and Concentration in US Agriculture- Published:
- 19 February 2018
DOI: https://doi.org/10.1007/978-94-007-6167-4_216-2
-
Original
Vertical Integration and Concentration in US Agriculture- Published:
- 13 February 2014
DOI: https://doi.org/10.1007/978-94-007-6167-4_216-1