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Estimated Impact Of Non-Price Coordination Of Fed Cattle Purchases On Meat Packer Processing Costs

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  • Anderson, John D.
  • Trapp, James N.
  • Fleming, Ronald A.

Abstract

Stochastic simulation of daily slaughter level was used in conjunction with an estimated packing plant cost curve to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to $5 per head may be possible. Savings result from ensuring a more stable processing volume that is near the plant's cost-minimizing level of production.

Suggested Citation

  • Anderson, John D. & Trapp, James N. & Fleming, Ronald A., 2003. "Estimated Impact Of Non-Price Coordination Of Fed Cattle Purchases On Meat Packer Processing Costs," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 21(2), pages 1-14.
    • Handle: RePEc:ags:jloagb:14668
    DOI: 10.22004/ag.econ.14668
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    Cited by:

    1. Slack-Smith, Andrew & Griffith, Garry R. & Thompson, John M., 2009. "The cost of non-compliance to beef market specifications," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 17, pages 1-13.
    2. Alessandro Bonanno & Carlo Russo & Luisa Menapace, 2018. "Market power and bargaining in agrifood markets: A review of emerging topics and tools," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 6-23, December.

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