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Economic And Structural Relationships In U.S. Hog Production

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  • McBride, William D.
  • Key, Nigel D.

Abstract

Rapid change in the size and ownership structure of U.S. hog production has created new and varied challenges for the industry. This report describes an industry becoming increasingly concentrated among fewer and larger farms, and becoming more economically efficient. These changes have not come without problems. The increasing market control and power concentrated among packers and large hog operations, and the manure management problem posed by an increasing concentration of hog manure on fewer operations, are paramount concerns. Addressing these concerns through regulations would likely impose economic costs that could be passed on to consumers. In addition, the relative mobility of the hog industry means that regulations could result in significant changes in the location of hog production facilities, with ripple effects in local economies. Balancing environmental and economic interests will challenge policymakers dealing with the implications of structural change in U.S. hog production.

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File URL: http://purl.umn.edu/33971
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Bibliographic Info

Paper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 33971.

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Date of creation: 2003
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Handle: RePEc:ags:uerser:33971

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Related research

Keywords: Hog production; industry structure; structural change; production costs; contract production; manure management; Livestock Production/Industries;

References

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  1. Martinez, Stephen W., 1999. "Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products," Agricultural Economics Reports 34031, United States Department of Agriculture, Economic Research Service.
  2. Westenbarger, David A. & Letson, David, 1995. "Livestock and Poultry Waste-Control Costs," Choices, Agricultural and Applied Economics Association, vol. 10(2).
  3. Martinez, Stephen W. & Smith, Kevin E. & Zering, Kelly D., 1998. "Analysis Of Changing Methods Of Vertical Coordination In The Pork Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(02), December.
  4. Rowland, William W. & Langemeier, Michael R. & Schurle, Bryan W. & Featherstone, Allen M., 1998. "A Nonparametric Efficiency Analysis For A Sample Of Kansas Swine Operations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July.
  5. Hubbell, Bryan J. & Welsh, Rick, 1998. "An Examination Of Trends In Geographic Concentration In U.S. Hog Production, 1974-96," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(02), December.
  6. Johnson, C. Scott & Foster, Kenneth A., 1994. "Risk Preferences And Contracting In The U.S. Hog Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
  7. Hennessy, David A., 1996. "Information Asymmetry As a Reason for Food Industry Vertical Integration," Staff General Research Papers 5032, Iowa State University, Department of Economics.
  8. Hayri ´┐Żnal & Laurian Unnevehr & Aleksandar Bekric, 2000. "Regional Shifts in Pork Production: Implications for Competition and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 968-978.
  9. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
  10. Hennessy, David A. & Lawrence, John D., 1999. "Contractual Relations, Control, and Quality in the Hog Sector," Staff General Research Papers 1706, Iowa State University, Department of Economics.
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