Estimating Oligopsony Power in the Hungarian Market for Slaughter Hogs

A structural market model is estimated to analyze the effect of market power on resource allocation in the Hungarian pork supply chain. Regression analysis suggests that market power exists. though at a relatively low level. Moreover the estimates show that processors might put-sue Cournot strategies. In addition, we observe that market power of processors in the Hungarian sector is increasing. These results are consistent with the structural developments in pork production and pork processing.