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Estimated Impact Of Non-Price Coordination Of Fed Cattle Purchases On Meat Packer Processing Costs

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Author Info

  • Anderson, John D.
  • Trapp, James N.
  • Fleming, Ronald A.
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    Abstract

    Stochastic simulation of daily slaughter level was used in conjunction with an estimated packing plant cost curve to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to $5 per head may be possible. Savings result from ensuring a more stable processing volume that is near the plant's cost-minimizing level of production.

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    File URL: http://purl.umn.edu/14668
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    Bibliographic Info

    Article provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.

    Volume (Year): 21 (2003)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:ags:jloagb:14668

    Contact details of provider:
    Postal: 301 Conner Hall, University of Georgia, Athens, GA 30602-7509
    Web page: http://www.agecon.uga.edu/~jab/
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    Related research

    Keywords: cattle; cost curve; meat packing; vertical coordination; Industrial Organization; Livestock Production/Industries;

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