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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, Stephen 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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File URL: http://purl.umn.edu/34031
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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 34031.

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Date of creation: 1999
Date of revision:
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;

References

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  1. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  2. 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.
  3. Rogers, Richard T., 1992. "Broilers -- Differentiating A Commodity," Research Reports 25178, University of Connecticut, Food Marketing Policy Center.
  4. 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.
  5. Elitzak, Howard, 1999. "Food Cost Review, 1950-97," Agricultural Economics Reports 34053, United States Department of Agriculture, Economic Research Service.
  6. 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.
  7. Brester, Gary W. & Schroeder, Ted C. & Mintert, James R., 1997. "Challenges to the Beef Industry," Choices, Agricultural and Applied Economics Association, vol. 12(4).
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