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Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products

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Author Info
Martinez, Steve W.
Abstract

Recent changes in structure of the U.S. pork industry reflect, in many ways, past changes in the broiler industry. Production contracts and vertical integration in the broiler industry facilitated rapid adoption of new technology, improved quality control, assured market outlets for broilers, and provided a steady flow of broilers for processing. Affordable, high-quality chicken products have contributed to continual increases in U.S. chicken consumption, which has surpassed pork and beef on a per capita basis. Incentives for contracting and vertical integration in the pork industry may yield comparable results. If so, these arrangements might be expected to result in larger supplies of higher quality pork products at economical prices.

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Publisher Info
Paper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 34031.

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Date of creation: 1999
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Handle: RePEc:ags:uerser:34031

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Related research
Keywords: vertical coordination; vertical integration; contracts; transaction costs; technology; chicken; pork; Livestock Production/Industries;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law & Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  2. Hennessy, David A., 2002. "Information Asymmetry as a Reason for Food Industry Vertical Integration," Staff General Research Papers 5032, Iowa State University, Department of Economics.
  3. Shelanski, Howard A & Klein, Peter G, 1995. "Empirical Research in Transaction Cost Economics: A Review and Assessment," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(2), pages 335-61, October.
  4. Alan Barkema & Michael L. Cook, 1993. "The changing U.S. pork industry: a dilemma for public policy," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 49-65. [Downloadable!]
  5. Rogers, Richard T., 1992. "Broilers -- Differentiating A Commodity," Research Reports 25178, University of Connecticut, Food Marketing Policy Center. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Boland, Michael A. & Golden, Bill B. & Tsoodle, Leah J., 2008. "Agency Theory Issues in the Food Processing Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(02), August. [Downloadable!]
  2. Goodwin, H. L., 2005. "Location of Production and Consolidation in the Processing Industry: The Case of Poultry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(02), August. [Downloadable!]
  3. 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. [Downloadable!]
  4. Wang, Yanguo & Jaenicke, Edward C., 2004. "Static And Dynamic Efficiency Of Pooled Broiler Contracts: Relative-Performance Contracts Vs. Fixed-Performance Contracts," 2004 Annual meeting, August 1-4, Denver, CO 20406, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December. [Downloadable!]
  6. Goodwin, H.L. & Djunaidi, Harjanto, 2000. "A Necessary Condition For Market Integration Tests: The Cases Of The U.S. Broiler Industry," Staff Papers 15781, University of Arkansas, Department of Agricultural Economics and Agribusiness. [Downloadable!]
  7. Hayenga, Marvin L., 2003. "Meat Packer Vertical Integration and Contract Linkages in the Beef and Pork Industries: An Economic Perspective," Staff General Research Papers 10564, Iowa State University, Department of Economics. [Downloadable!]
  8. Hueth, Brent & Marcoul, Philippe & Ginder, Roger, 2005. "Cooperative Formation And Financial Contracting In Agricultural Markets," 2005 Annual meeting, July 24-27, Providence, RI 19324, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
    Other versions:
  9. Julio Peña Torres, 2005. "Informal Markets, Perishability and Vertical Control: Brokerage of Artisanal Landings," ILADES-Georgetown University Working Papers inv165, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
  10. Preckel, Paul & Boehlje, Michael & Gray, Allan & Kim, Sounghun, 2004. "Vertically Aligned Vs. Open Market Coordination: Dominance Or Co-Existence?," 2004 Annual meeting, August 1-4, Denver, CO 20099, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  11. Gollehon, Noel & Caswell, Margriet & Ribaudo, Marc & Kellogg, Bob & Lander, Charles & Letson, David, 2000. "Confined Animal Production And Manure Nutrients," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36382, Western Agricultural Economics Association. [Downloadable!]
    Other versions:
  12. Dimitri, Carolyn & Jaenicke, Edward C., 2001. "Cash Market Or Contract? How Technology And Consumer Demand Influence The Decision," 2001 Annual meeting, August 5-8, Chicago, IL 20723, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  13. Julio Peña Torres & R. Javier Bustos S. & Claudio Pérez B., 2005. "Mercados Informales y Control Vertical: Comercialización de Pesca Artesanal Perecible," ILADES-Georgetown University Working Papers inv161, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
  14. Young, Linda M. & Hobbs, Jill E., 2000. "Public Policy Responses To Increased Vertical Linkages In Agri-Food Supply Chains," Trade Research Center Research Discussion Papers 29237, Montana State University, Department of Agricultural Economics and Economics. [Downloadable!]
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