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Retail Consolidation and Produce Buying Practices: A Summary of the Evidence and Potential Industry and Policy Responses

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I ncreasing concentration among food retailers has sparked concern among growers and shippers of fresh fruits and vegetables over retailers’ potential use of their market power in determining the prices sup- pliers receive and the fees they are asked to pay. Industry concern over shippers’ disadvantageous bar- gaining position in price negotiations is not new, but the debate has become more pointed and more vocal as the suppliers’ position seems to be deteriorating further. Moreover, the manifestation of retailers’ mar- ket power seems to be taking on a new form that is particularly disturbing to growers. For example, retail- ers have begun to require fresh fruit and vegetable suppliers to pay slotting fees, pay-to-stay.