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The Effects Of Industry Structure On Price: A Case In The Beef Industry

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  • Menkhaus, Dale J.
  • St. Clair, James S.
  • Ahmaddaud, A. Zahedi

Abstract

This study estimates the influence of concentration and other structural variables on the price of slaughter cattle. Cross-sectional data were used to estimate a single equation model which included, in addition to traditional factor demand variables, packer concentration and a measure of market power exerted by feedlots. Results suggest that packer concentration has had a significant and increasing negative impact on fed cattle prices during the years of analysis, 1972 and 1977.

Suggested Citation

  • Menkhaus, Dale J. & St. Clair, James S. & Ahmaddaud, A. Zahedi, 1981. "The Effects Of Industry Structure On Price: A Case In The Beef Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(2), pages 1-8, December.
    • Handle: RePEc:ags:wjagec:32570
    DOI: 10.22004/ag.econ.32570
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    References listed on IDEAS

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    1. Hall, Lana & Schmitz, Andrew & Cothern, James, 1979. "Beef Wholesale-Retail Marketing Margins and Concentration," Economica, London School of Economics and Political Science, vol. 46(183), pages 295-300, August.
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    Cited by:

    1. Buccola, Steven T., 1989. "Pricing Efficiency In Agricultural Markets: Issues, Methods, And Results," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-11, July.
    2. Azzam, Azzeddine M., 1998. "Competition in the US meatpacking industry: is it history?," Agricultural Economics, Blackwell, vol. 18(2), pages 107-126, March.
    3. Capps, Oral, Jr. & Byrne, Patrick J. & Williams, Gary W., 1995. "Analysis Of Marketing Margins In The U.S. Lamb Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(2), pages 1-9, October.
    4. Ward, Clement E., 1987. "Productivity-Concentration Relationship In The U.S. Meatpacking Industry," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-6, December.
    5. Capps, Oral & Alan Love, H. & Williams, Gary W. & Adams, Wendi L., 1999. "Examining Packer Choice of Slaughter Cattle Procurement and Pricing Methods," Agricultural and Resource Economics Review, Cambridge University Press, vol. 28(1), pages 11-25, April.
    6. N/A, 1986. "Testing For Price Taking Behavior In Input Markets: An Application To The Meat Packing Industry," 1986 Annual Meeting, July 27-30, Reno, Nevada 278440, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Ward, Clement E., 1984. "An Empirical Study Of Competition In The Price Discovery Process For Slaughter Lambs," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(1), pages 1-10, July.
    8. Fausti, Scott & Diersen, Matthew & Qasmi, Bashir & Adamson, Bill, 2015. "The Influence of Market Power and Market Trends on Grid Market Signals," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), pages 1-12.
    9. Schroeder, Ted & Jones, Rodney & Mintert, James & Barkley, Andrew, 1991. "The Impacts of Captive Supplies on the Fed Cattle Industry," Staff Papers 232404, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    10. Marion, Bruce W. & Geithman, Frederick E., 1994. "Concentration-Price Relations in Regional Fed Cattle Markets," Research Reports 25213, University of Connecticut, Food Marketing Policy Center.
    11. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A & Adamson, Bill, 2014. "Grid Valuation of Beef Carcass Quality: Market Power and Market Trends," Economics Staff Papers 171423, South Dakota State University, Department of Economics.
    12. Taylor, Donald C., 1994. "Livestock Manure Production and Disposition: South Dakota Feedlots-Farms-Ranches," Economics Research Papers 232155, South Dakota State University, Department of Economics.

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