IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Positive Market Effects from a Meatpacking Plant Opening: Perceptions and Reality

Listed author(s):
  • Hornung, Jonathan T.
  • Ward, Clement E.

Economic theory suggests that adding a competitive buyer to a market should have positive effects on competition and prices, ceteris paribus. An additional buyer increases market demand, shifting demand to the right, and expands the number of active buyers, reducing average market shares of existing buyers while intensifying bidding competition. Whether or not these positive impacts occur in reality is an empirical question. The largest pork processor in Canada, Maple Leaf Foods Inc., opened a 45,000 head/week hog processing facility in August 1999 in Brandon, Manitoba. The plant opened during a period of expanding hog production in Canada, of increasing hog exports to the United States, and of increasingly tight processing capacity in the United States (Luby, 1999; Parcell, Mintert, and Plain, 2004). Most previous research on the impacts of meat processing plants has focused on plant closings, and none has estimated the effects of a plant opening under conditions of expanding production and tight processing capacity. Research reported here expands previous work by taking a dual approach to the question. First, two models were used to estimate market price impacts from the plant opening. Second, a survey of Manitoba pork producers provided insight into the perceived market dynamics of the plant opening.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://purl.umn.edu/46022
Download Restriction: no

Article provided by Canadian Agricultural Economics Society in its journal CAFRI: Current Agriculture, Food and Resource Issues.

Volume (Year): (2005)
Issue (Month): 06 ()
Pages:

as
in new window

Handle: RePEc:ags:cafric:46022
Contact details of provider: Web page: http://caes.usask.ca/papers/cafri/index.php

More information through EDIRC

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.:

as
in new window


  1. Parcell, Joe & Mintert, James & Plain, Ron, 2004. "An Empirical Investigation of Live-Hog Demand," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(03), pages 773-787, December.
  2. Marc Nerlove, 1958. "Distributed lags and Estimation of Long-Run Supply and Demand Elasticities: Theoretical Considerations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 40(2), pages 301-310.
  3. Roger A. Dahlgran & Dean G. Fairchild, 2002. "The demand impacts of chicken contamination publicity-a case study," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 459-474.
  4. Harold G. Love & D. Milton Shuffett, 1965. "Short-Run Price Effects of a Structural Change in a Terminal Market for Hogs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(3), pages 803-812.
  5. Grunewald, Sarah & Schroeder, Ted C. & Ward, Clement E., 2002. "Cattle Feeder Perceptions Of Livestock Mandatory Price Reporting," 2002 Conference, April 22-23, 2002, St. Louis, Missouri 19056, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
  6. Donald W. Anderson & Brian C. Murray & Jackqueline L. Teague & Richard C. Lindrooth, 1998. "Exit from the Meatpacking Industry: A Microdata Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 96-106.
  7. Carlberg, Jared G. & Ward, Clement E., 2003. "Alternative Theories and Empirical Approaches to Price Discovery: An Application to Fed Cattle," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 35(03), pages 649-661, December.
  8. Deiter, Ronald E. & Montoya, Cristobal & Hayenga, Marvin L., 1986. "Price Impacts Associated with the Closing of Hog Slaughtering Plants," Staff General Research Papers Archive 11081, Iowa State University, Department of Economics.
  9. Carlberg, Jared G. & Ward, Clement E., 2003. "Alternative Theories and Empirical Approaches to Price Discovery: An Application to Fed Cattle," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(03), December.
  10. Ward, Clement E., 2002. "A Review of Causes for and Consequences of Economic Concentration in the U.S. Meatpacking Industry," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 03.
  11. Parcell, Joseph L. & Mintert, James R. & Plain, Ronald L., 2004. "An Empirical Investigation of Live-Hog Demand," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(03), December.
  12. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:cafric:46022. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.