Retail Mergers and Acquisitions, and Specialty Crop Producers: Evidence from California

Abstract

Relatively little is known about the economic impact of mergers and acquisitions in the food retail industry on upstream agricultural producers. We study the potential impact of the 2014 merger between Safeway and Albertsons on California specialty crop growers. There is a consensus among the 19 growers that we interviewed that merger events are unfavorable since they lead to uncertainty, lower prices, lost revenue, and higher transaction costs. State-level analysis of USDA crop price data provides support for these contentions.