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Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries

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  • Marsh, John M.
  • Brester, Gary W.

Abstract

An econometric model is used to estimate real wholesale-retail marketing margins for beef and pork. From 1970 to 1998, these margins increased by 27% and 149%, while farm-wholesale margins declined. Wholesale-retail (WR) marketing margin increases have caused livestock producers to focus on the retail sector as a contributor to declining real livestock prices. Increases in WR margins may be related to increased demand and costs of value-added food products/services as well as increased market concentration in the retail grocery sector. Results indicate that retail factors, and to a lesser extent meat processing factors, significantly increased WR margins and decreased livestock prices.

Suggested Citation

  • Marsh, John M. & Brester, Gary W., 2004. "Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(1), pages 1-20, April.
    • Handle: RePEc:ags:jlaare:31139
    DOI: 10.22004/ag.econ.31139
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    References listed on IDEAS

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    Cited by:

    1. Schroeder, Ted C & Tonsor, Glynn T & Schulz, Lee L & Johnson, Bradley J & Sommers, Christopher, 2021. "USDA ERS Meat Price Spread Data Product Review," Contractor and Cooperator Reports 327349, United States Department of Agriculture, Economic Research Service.
    2. Rachel Rose & Dimitrios Paparas, 2023. "Price Transmission: The Case of the UK Dairy Market," Commodities, MDPI, vol. 2(1), pages 1-21, March.
    3. Timothy A. Wise & Sarah E. Trist, "undated". "Buyer Power in U.S. Hog Markets: A Critical Review of the Literature," GDAE Working Papers 10-04, GDAE, Tufts University.
    4. Maples, Joshua G. & Harri, Ardian & Riley, John Michael & Tack, Jesse B., 2013. "Marketing Margins and Input Price Uncertainty," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150604, Agricultural and Applied Economics Association.
    5. Mojtaba ABASSIAN & Farhad SHIRANI BIDABADI & Hussein EBRAHIMZADEH, 2010. "Efficiency of date marketing system in Sistan & Bluchestan of Iran; a marketing margin approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(1), pages 43-50.
    6. Gary W. Brester & Kole Swanser, 2021. "The Impact of Cattle Hide and Byproduct Values on Cattle Price Declines in 2020," MSU Staff Papers 309621, Montana State University > Department of Agricultural Economics and Economics.
    7. Brester, Gary W. & Marsh, John M. & Atwood, Joseph A., 2009. "Evaluating the Farmer’s-Share-of-the-Retail-Dollar Statistic," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), pages 1-24, August.
    8. Brester, Gary W., 2006. "Research and Publishing: Relevance and Irreverence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-16, December.

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