Changes in the Structure of the Florida Processed Orange Industry and Potential Impacts on Competition

The Florida processed orange industry has become more concentrated in the last two decades raising questions on competitive behavior, particularly with respect to the purchase by processors of fruit from Florida orange growers. The purpose of this paper is to examine the changes in market structure of the Florida orange industry at the processor as well as retail and grower levels. The results suggest that the increase in concentration in the Florida orange processing industry, as well as the increase in concentration at the retail grocery store level, has increased the likelihood of non-competitive pricing behavior involving these industrial sectors.