1887

Concentration in Seed Markets

Potential Effects and Policy Responses

image of Concentration in Seed Markets

Recent mergers in the seed industry have led to concerns about market concentration and its potential effects on prices, product choice, and innovation. This study provides new and detailed empirical evidence on the degree of market concentration in seed and GM technology across a broad range of crops and countries, and analyses the causes and potential effects of concentration. It also explains how competition authorities have responded to mergers, and suggests policy options to help safeguard and stimulate competition and innovation in plant breeding by avoiding unnecessary regulatory barriers, by facilitating access to genetic resources and intellectual property, as well as by stimulating public and private R&D. As this study shows, policy makers have several levers besides competition policy to ensure an innovative and competitive seed industry.

English

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New evidence on the effects of concentration in seed markets

The new data presented in the previous chapter allow for an empirical analysis of the effects of concentration in seed markets. An analysis of determinants of seed prices does not find strong evidence of a harmful impact of market concentration. Using data for the European Union on the introduction of new varieties, an empirical analysis similarly does not find strong evidence of a harmful effect of concentration on innovation.

English

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