GMO seed monopoly

In this article by Ken Roseboro, the oligopoly in the seed industry (the article says monopoly but it is 4 companies controlling 80% of the US corn market and 70% of the soybean market, so in terms of what we’re learning in class I will use “oligopoly”) is discussed and explained. When 40% or more of an industry is being controlled by four┬ácompanies, the industry is not competitive anymore. Since these companies have so much market power, they are able to set higher prices and lower choice options. When farmers try to save their own seeds and not buy gmo seeds from the oligopoly, they can’t compete; many don’t even have the option. This oligopoly is dangerous because there is little diversity in these types of seeds and potentially they could be wiped out rapidly if such an event were to occur. In other countries such as brazil has split up the one company that was controlling seeds into 13 smaller companies that now can compete with one another, this increases consumer surplus and makes a society more productive.

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