Dynamic changes in the structure and concentration of the international grain and oilseed trading industry

Abstract

This paper aims to describe the evolution of firm and industry strategies and to analyze detailed transaction data on the structure of the international grain trading industry. Specifically, data are developed from vessel nominations, and these were used to derive measures of concentration and determine how these change across selected geographies and commodities, as well as to identify the clusters of firms in this industry. The results provide unique documentation on the structure and concentration of the world grain trading industry. The results indicate the levels of concentration are much less than traditionally suggested; there has been growth by many new entrants making up a viable competitive fringe; the industry seems to be comprised of three clusters of firms; and generally, competition in this industry would be characterized as being “fierce.”