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Pork Quality And The Role Of Market Organizaton

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Author Info

  • Martinez, Stephen W.
  • Zering, Kelly D.

Abstract

This study addresses changes in the organization of the U.S. pork industry, most notably marketing contracts between packers and producers, by exploring their function in addressing pork quality concerns. A number of developments brought quality concerns to the forefront. These include health concerns and corresponding preferences for lean pork, a decline in other quality attributes, heightened concerns over food safety and related regulatory programs, and expansion into global markets. Organizational arrangements can facilitate industry efforts to address pork quality needs by reducing measuring costs, controlling quality attributes that are difficult to measure, facilitating adaptations to changing quality standards, and reducing transaction costs associated with relationship-specific investments in branding programs.

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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 33973.

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Date of creation: 2004
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Handle: RePEc:ags:uerser:33973

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Related research

Keywords: Contracts; transaction costs; measuring technology; measuring costs; pork; quality; leanness; safety; carcass pricing; vertical integration; Livestock Production/Industries; Marketing;

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. 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.
  3. Wayne D. Purcell & William T. Hudson, 2003. "Risk Sharing and Compensation Guides for Managers and Members of Vertical Beef Alliances," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 44-65.
  4. Martinez, Stephen W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economics Reports 34051, United States Department of Agriculture, Economic Research Service.
  5. Unnevehr, Laurian J. & Jensen, Helen H., 2005. "Industry Compliance Costs: What Would They Look Like in a Risk-Based Integrated Food System," Staff General Research Papers 12353, Iowa State University, Department of Economics.
  6. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
  7. Unnevehr, Laurian J. & Jensen, Helen H., 1999. "Economic Implications of Using HACCP As a Food Safety Regulatory Standard (The)," Staff General Research Papers 1631, Iowa State University, Department of Economics.
  8. Ted C. Schroeder, 1993. "An evaluation of hog carcass merit pricing systems," Agribusiness, John Wiley & Sons, Ltd., vol. 9(4), pages 339-350.
  9. Lawrence, John D. & Schroeder, Ted C. & Hayenga, Marvin L., 2001. "Evolving Producer-Packer-Customer Linkages in the Beef and Pork Industries," Staff General Research Papers 2060, Iowa State University, Department of Economics.
  10. Stephen G. Sapp & C. Lynn Knipe, 1990. "Japanese consumer preferences for processed pork," Agribusiness, John Wiley & Sons, Ltd., vol. 6(4), pages 387-400.
  11. Nigel Key & William McBride, 2003. "Production Contracts and Productivity in the U.S. Hog Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 121-133.
  12. Jill E. Hobbs, 1996. "Transaction costs and slaughter cattle procurement: Processors' selection of supply channels," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 509-523.
  13. Unnevehr, Laurian J. & Jensen, Helen H., 1999. "The economic implications of using HACCP as a food safety regulatory standard," Food Policy, Elsevier, vol. 24(6), pages 625-635, December.
  14. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
  15. Francine Lafontaine & Scott E. Masten, 2002. "Contracting in the Absence of Specific Investments and Moral Hazard: Understanding Carrier-Driver Relations in U.S. Trucking," NBER Working Papers 8859, National Bureau of Economic Research, Inc.
  16. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
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Citations

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Cited by:
  1. Timothy A. Wise & Sarah E. Trist, . "10-04 "Buyer Power in U.S. Hog Markets: A Critical Review of the Literature"," GDAE Working Papers 10-04, GDAE, Tufts University.
  2. Martinez, Stephen W., 2007. "The U.S. Food Marketing System: Recent Developments, 1997-2006," Economic Research Report 55962, United States Department of Agriculture, Economic Research Service.
  3. Sykuta, Michael E., 2005. "Agricultural Organization in an Era of Traceability," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(02), August.
  4. Hueth, Brent & Ligon, Ethan & Dimitri, Carolyn, 2007. "AJAE Appendix: Agricultural Contracts: Data and Research Needs," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 89(5), December.
  5. Han, Jiqin & Trienekens, Jacques H. & (Onno) Omta, S.W.F., 2011. "Relationship and quality management in the Chinese pork supply chain," International Journal of Production Economics, Elsevier, vol. 134(2), pages 312-321, December.

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