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Location of Production and Consolidation in the Processing Industry: The Case of Poultry

Author

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  • Goodwin, Harold L., Jr.

Abstract

The poultry industry is the most vertically integrated of U.S. agriculture and food production and is rapidly progressing toward being one of the most concentrated. In 2002, the top 15 broiler states accounted for 94.4% of U.S. production. From 1982-2002, the top four broiler firms had a fivefold increase in Ready-to-Cook (R-T-C) pounds, a tripling of plants and four-and eight-firm concentration ratio increases of 27.9% to 48.2% and 44.1% to 66.6%. In a broad sense, chicken became more affordable, appealing, and available; total R-T-C pounds increased from 234 to 663 million pounds between 1982 and 2002.

Suggested Citation

  • Goodwin, Harold L., Jr., 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.
  • Handle: RePEc:ags:joaaec:43510
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    File URL: http://purl.umn.edu/43510
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    References listed on IDEAS

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    1. Theofanis Tsoulouhas & Tomislav Vukina, 1999. "Integrator Contracts with Many Agents and Bankruptcy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 61-74.
    2. Rachael E. Goodhue, 2000. "Broiler Production Contracts as a Multi-Agent Problem: Common Risk, Incentives and Heterogeneity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 606-622.
    3. 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.
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    Cited by:

    1. Elanor Starmer, Aimee Witteman and Timothy A. Wise, "undated". "06-03 "Feeding the Factory Farm: Implicit Subsidies to the Broiler Chicken Industry"," GDAE Working Papers 06-03, GDAE, Tufts University.

    More about this item

    Keywords

    broilers; concentration; poultry pricing; poultry production; vertical integration; L11; L22; M11; Q13; R30;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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