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Technological Change and Economies of Scale in U.S. Poultry Processing

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  • Milton Madison

Abstract

This article uses a unique data set provided by the Census Bureau and a translog cost function to empirically examine technological change in the U.S. poultry industry. Results reveal substantial scale economies that show no evidence of diminishing with plant size and that are much greater than those realized in cattle and hog slaughter. Findings suggest that consolidation is likely to continue, particularly if demand growth diminishes, and that controlling for plant product mix is critical to accurate cost estimates. Copyright 2005, Oxford University Press.

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  • Milton Madison, 2005. "Technological Change and Economies of Scale in U.S. Poultry Processing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 116-129.
  • Handle: RePEc:oup:ajagec:v:87:y:2005:i:1:p:116-129
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    File URL: http://hdl.handle.net/10.1111/j.0002-9092.2005.00706.x
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    Cited by:

    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. Artz, Georgeanne M. & Jackson, Rebecca & Orazem, Peter F., 2010. "Is It a Jungle Out There? Meat Packing, Immigrants, and Rural Communities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(2), August.
    3. Nguyen, Duong T.M. & McLaren, Keith Robert & Zhao, Xueyan, 2008. "Multi-Output Broadacre Agricultural Production: Estimating A Cost Function Using Quasi-Micro Farm Level Data From Australia," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6009, Australian Agricultural and Resource Economics Society.
    4. repec:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0080-2 is not listed on IDEAS
    5. Ollinger, Michael & Ralston, Katherine L. & Guthrie, Joanne F., 2012. "Location, School Characteristics, and the Cost of School Meals," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), December.
    6. MacDonald, James M., 2011. "Why Are Farms Getting Larger? The Case Of The U.S," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115361, German Association of Agricultural Economists (GEWISOLA).
    7. Tengying Weng & Tomislav Vukina & Xiaoyong Zheng, 2015. "The Effects of Productvity and Demand-Specific Factors on Plant Survival and Ownership Change in the U.S. Poultry Industry," Working Papers 15-20, Center for Economic Studies, U.S. Census Bureau.
    8. Lambert, Remy, 2012. "A Primer on the Economics of Supply Management and Food Supply Chains," Working Papers 125246, Structure and Performance of Agriculture and Agri-products Industry (SPAA).

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