IDEAS home Printed from https://ideas.repec.org/a/bla/canjag/v70y2022i1p63-72.html

On the economics of meat processing, livestock queuing, and worker safety

Author

Listed:
  • Bruno Larue

Abstract

Meat processing plants use inputs in fixed proportions, but these proportions vary with plant size. Shocks to the supply of labor and livestock induce allocative inefficiency, output reductions, and higher unit costs of production. Both labor conflicts and the pandemic caused long labor shortages resulting in unused capacity and large livestock queues. Industry concentration and vertical integration can mitigate some of these problems by internalizing queuing costs and by reallocating workers across plants. Daily shocks make plants operate with either too many workers or too many live animals. Larger plants choose to be labor‐constrained more frequently, creating a trade‐off between wages and safety for workers. Les usines de transformation de viande utilisent leurs intrants en proportion fixes, mais ces proportions varient avec la taille des usines. Des chocs sur l'offre de travail et l'offre d'animaux entrainent de l'inefficacité allocative, des baisses de production et des coûts unitaires plus élevés. Les conflits de travail et la pandémie ont engendré des diminutions subites et prolongées de main d’œuvre et d'importants retards dans l'abattage. La concentration et l'intégration verticale de l'industrie peuvent aider en internalisant les coûts occasionnés par les retards et en relocalisant temporairement la main d’œuvre entre usines. Les chocs sur l'offre de travail et d'animaux forcent les usines à opérer souvent avec trop ou pas assez d'animaux par travailleur. Les plus grandes usines choisissent d’être limitées par l'offre de travail plus souvent, ce qui crée un compromis entre salaires et sécurité pour les travailleurs.

Suggested Citation

  • Bruno Larue, 2022. "On the economics of meat processing, livestock queuing, and worker safety," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 63-72, March.
  • Handle: RePEc:bla:canjag:v:70:y:2022:i:1:p:63-72
    DOI: 10.1111/cjag.12303
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/cjag.12303
    Download Restriction: no

    File URL: https://libkey.io/10.1111/cjag.12303?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jean-Philippe Gervais & Olivier Bonroy & Steve Couture, 2008. "A province-level analysis of economies of scale in Canadian food processing," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 538-556.
    2. Pascal L. Ghazalian & Bruno Larue & Gale E. West, 2010. "Best Management Practices and the Production of Good and Bad Outputs," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 283-302, September.
    3. Joel Blit & Mikal Skuterud & Michael R. Veall, 2020. "The Pandemic and Short-Run Changes in Output, Hours Worked and Labour Productivity: Canadian Evidence by Industry," International Productivity Monitor, Centre for the Study of Living Standards, vol. 39, pages 16-32, Fall.
    4. Olivier Bonroy & Jean-Philippe Gervais & Bruno Larue, 2007. "Are exports a monotonic function of exchange rate volatility? Evidence from disaggregated pork exports," Canadian Journal of Economics, Canadian Economics Association, vol. 40(1), pages 127-154, February.
    5. Azzeddine M. Azzam & John R. Schroeter, 1995. "The Tradeoff between Oligopsony Power and Cost Efficiency in Horizontal Consolidation: An Example from Beef Packing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 825-836.
    6. Hayenga, Marvin L., 2000. "Meat Packer Vertical Integration and Contract Linkages in the Beef and Pork Industries: An Economic Perspective," Staff General Research Papers Archive 10564, Iowa State University, Department of Economics.
    7. Maurice Kugler & Eric Verhoogen, 2012. "Prices, Plant Size, and Product Quality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(1), pages 307-339.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruno Larue, 2021. "COVID‐19 and labor issues: An assessment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(2), pages 269-279, June.
    2. Chen, Natalie & Juvenal, Luciana, 2022. "Markups, quality, and trade costs," Journal of International Economics, Elsevier, vol. 137(C).
    3. Geoffrey Barrows & Hélène Ollivier & Ariell Reshef, 2023. "Production Function Estimation with Multi-Destination Firms," CESifo Working Paper Series 10716, CESifo.
    4. Francesco Guerra, 2023. "How taste proximity affects consumer quality valuation of imported varieties: Evidence from the French food sector," The World Economy, Wiley Blackwell, vol. 46(9), pages 2857-2890, September.
    5. Yi-Ling Cheng & Juin-Jen Chang, 2017. "The Quality of Intermediate Goods: Growth and Welfare Implications," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 434-447, September.
    6. Carsten Eckel & Florian Unger, 2023. "Credit Constraints, Endogenous Innovations, And Price Setting In International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(4), pages 1715-1747, November.
    7. Christopher Hansman & Jonas Hjort & Gianmarco León-Ciliotta & Matthieu Teachout, 2020. "Vertical Integration, Supplier Behavior, and Quality Upgrading among Exporters," Journal of Political Economy, University of Chicago Press, vol. 128(9), pages 3570-3625.
    8. Borota Milicevic, Teodora & Carlsson, Mikael, 2016. "Markups from Inventory Data and Export Intensity," Working Paper Series 2016:9, Uppsala University, Department of Economics.
    9. Xiaoli, Ma & Benye, Shi & Hongliang, Lu & Raza, Ali, 2025. "Domestic value chain, digital finance and the quality of firm's export products," Research in International Business and Finance, Elsevier, vol. 77(PA).
    10. Pupato, Germán, 2017. "Performance pay, trade and inequality," Journal of Economic Theory, Elsevier, vol. 172(C), pages 478-504.
    11. Tan, Yong & An, Liwei, 2019. "Quota removal and firm-level offshoring: Theory and evidence," Economic Modelling, Elsevier, vol. 78(C), pages 225-239.
    12. GAIGNE, Carl & LAROCHE DUPRAZ, Cathie & MATTHEWS, Alan, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(01), March.
    13. Békés, Gábor & Hornok, Cecília & Muraközy, Balázs, 2016. "Globalization and the markups of European firms," Kiel Working Papers 2044, Kiel Institute for the World Economy (IfW Kiel).
    14. Zara Liaqat, Karrar Hussain, 2025. "Keeping the Enemies Closer: Exporting Behavior of Firms under Conflict," LCERPA Working Papers jc0152, Laurier Centre for Economic Research and Policy Analysis, revised 2025.
    15. Mario Macis & Fabiano Schivardi, 2016. "Exports and Wages: Rent Sharing, Workforce Composition, or Returns to Skills?," Journal of Labor Economics, University of Chicago Press, vol. 34(4), pages 945-978.
    16. Cheng, Wenya & Morrow, John & Tacharoen, Kitjawat, 2012. "Productivity as if space mattered: an application to factor markets across China," LSE Research Online Documents on Economics 48930, London School of Economics and Political Science, LSE Library.
    17. repec:grz:wpaper:2012-09 is not listed on IDEAS
    18. Gideon Ndubuisi, 2024. "Patent Enforcement and Quality Upgrading of Exported Products," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13979-14011, September.
    19. Chen, Natalie & Juvenal, Luciana, 2018. "Quality and the Great Trade Collapse," Journal of Development Economics, Elsevier, vol. 135(C), pages 59-76.
    20. Mauro Caselli & Arpita Chatterjee & Shengyu Li, 2023. "Productivity and Quality of Multi-product Firms," Discussion Papers 2023-10, School of Economics, The University of New South Wales.
    21. Halima Jibril & Stephen Roper, 2022. "Of chickens and eggs: Exporting, innovation novelty and productivity," Working Papers 027, The Productivity Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:canjag:v:70:y:2022:i:1:p:63-72. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/caefmea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.