MERGERS AND THE FOOD INDUSTRY STRUCTURE
1989
The structure of industries changes in two major ways. Mergers, acquisitions, and divestitures are considered external factors. In addition, the firm rate of internal growth will influence market concentration. If the firm grows slower than the market, concentration will go down, etc. These two factors may work in concert or pull in opposite directions. The authors investigate the trends and effects of mergers on the food marketing system. A clear trend of increasing merger activity from 1982 through 1986 is apparent. It is not clear what has happened after 1986, although accounts suggest a continued high level of merger activity. The cumulative result of these mergers is even more pronounced when combined with the growth trends in each sector.
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