COMPETITION IN THE MARKET OF SUGAR PRODUCERS: DECOMPOSITION OF CONCENTRATION INDICATORS

Abstract

Competition in the sugar producer market is an important factor that determines the development of the agricultural sector, as well as economic stability. In the context of current globalization, manufacturers are increasingly faced with changes in consumer preferences, so there is a need to adapt to new conditions. The decomposition of concentration indicators in this market allows you to delve deeper into the structure of competition and identify the key factors affecting production volume, the main risks and opportunities for market players. The article examines the problem of competition in the sugar producers market in the Volga Federal District through the prism of industry concentration. The assessment of industry concentration was carried out using the most important indicators widely used in many countries, including Russia, which provide detailed information about the market situation, as well as ways to change it in the process of redistributing market shares of participants. To analyze the competitive situation in the sugar production market, the authors used indicators such as the shares of the largest companies in the market, concentration indices (CR), Herfindahl-Hirschmann (HHI), Linda (I_L). These indicators help to determine the level of competitiveness and monopolization of the market, as well as give a general idea of the dynamics of the industry and price stability for this type of product. The possible consequences of mergers (acquisitions) of enterprises (sugar factories) on a regional basis are assessed using the example of the Republic of Bashkortostan, the Republic of Tatarstan, and the Penza region. In conclusion, based on the conducted research, recommendations on mergers (acquisitions) of enterprises are given and the importance of the role and wide scope of concentration indices are noted.