IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v7y2009i1n3.html
   My bibliography  Save this article

Complementarity among Alternative Procurement Arrangements in the Pork Packing Industry

Author

Listed:
  • Vukina Tomislav

    (North Carolina State University)

  • Shin Changmok

    (Samsung Economic Research Institute)

  • Zheng Xiaoyong

    (North Carolina State University)

Abstract

We estimate the economies of scale for a sample of pork packing plants and use these estimates together with two other performance measures (EBIT and gross margin) to examine whether the alternative procurement methods for live hogs are complementary. The results indicate that all procurement arrangements portfolios improve plant performance relative to the simple spot market purchases, but the portfolio coefficients in performance equations do not always monotonically increase with the portfolio order. However, looking at the price packers pay to procure their hogs, the results indicate that plants that use a combination of higher-order procurement arrangements on average pay lower prices relative to plants that use the spot market only. Comparing the magnitudes of the portfolio effects with the magnitudes of the individual procurement arrangement effects shows that individual practices have minimal additional impact on the procurement price, indicating that the procurement methods may be complementary.

Suggested Citation

  • Vukina Tomislav & Shin Changmok & Zheng Xiaoyong, 2009. "Complementarity among Alternative Procurement Arrangements in the Pork Packing Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(1), pages 1-24, March.
  • Handle: RePEc:bpj:bjafio:v:7:y:2009:i:1:n:3
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/jafio.2009.7.1/jafio.2009.7.1.1252/jafio.2009.7.1.1252.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:oup:apecpp:v:38:y:2016:i:4:p:632-654. is not listed on IDEAS
    2. Inderfurth, Karl & Kelle, Peter & Kleber, Rainer, 2013. "Dual sourcing using capacity reservation and spot market: Optimal procurement policy and heuristic parameter determination," European Journal of Operational Research, Elsevier, vol. 225(2), pages 298-309.
    3. Niemi, Jarkko K. & Liu, Xing & Pietola, Kyosti, 2011. "Price volatility and return on pig fattening under different price- quantity contract regimes," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114614, European Association of Agricultural Economists.
    4. Rainer Kleber & Karl Inderfurth & Peter Kelle, 2014. "Combined sourcing and inventory management using capacity reservation and spot market," FEMM Working Papers 140005, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    5. Karl Inderfurth & Peter Kelle & Rainer Kleber, 2014. "The Effect of Material Price and Product Demand Correlations on Combined Sourcing and Inventory Management," FEMM Working Papers 140013, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    6. Niemi, Jarkko K., 2012. "Designing coordination contracts to support efficient flow-scheduling in pork chain," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125208, Agricultural and Applied Economics Association.
    7. Karl Inderfurth & Peter Kelle & Rainer Kleber, 2011. "Dual Sourcing Using Capacity Reservation and Spot Market: Optimal Procurement Policy and Heuristic Parameter Determination," FEMM Working Papers 110014, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    8. Amorim, Pedro & Curcio, Eduardo & Almada-Lobo, Bernardo & Barbosa-PĆ³voa, Ana P.F.D. & Grossmann, Ignacio E., 2016. "Supplier selection in the processed food industry under uncertainty," European Journal of Operational Research, Elsevier, vol. 252(3), pages 801-814.

    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:bpj:bjafio:v:7:y:2009:i:1:n:3. 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: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.