The regulation of the wheat milling industry in BrazilThis article discusses the impact of the regulation of the Brazilian wheat market on the industrial structure of the wheat flour and the possibility of the subsidy absorption by the industry. First, it is remarked the institutional aspects of the wheat flour industry. Then, the framework used was based on indicators developed in Industrial Organization theory, that indicates that the regulation is not the cause of the increase in market concentration nor that the industry absorbed the subsidy. On the contrary, it seems that the industry real profit decreased during the relevant period of subsidy policy (1970-80).
KEYWORDS:
Regulation; wheat; agricultural policy; subsides