IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v12y1996i6p509-523.html
   My bibliography  Save this article

Transaction costs and slaughter cattle procurement: Processors' selection of supply channels

Author

Listed:
  • Jill E. Hobbs

    (Excellence in the Pacific Research Institute, University of Lethbridge and Faculty of Management, University of Calgary, 4219 Village Terrace SW, Calgary T3H 2L4, Canada)

Abstract

This article investigates the hypothesis that different supply channels impose different types (and levels of) transaction costs on beef processors in the United Kingdom. The choice of supply channel is therefore influenced by these transaction costs. Recent food safety legislation and increasing consumer concerns over farm animal welfare may have altered the transaction costs arising from different supply channels. Conjoint analysis is used to measure the relative importance of selected transaction costs in a processor's procurement decision. A survey of UK beef processing firms is used to collect data for the conjoint analysis. The results suggest that the monitoring costs arising from the traceability of cattle to the farm of origin are particularly important. The implications for vertical coordination in the beef marketing chain are discussed. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • Jill E. Hobbs, 1996. "Transaction costs and slaughter cattle procurement: Processors' selection of supply channels," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 509-523.
  • Handle: RePEc:wly:agribz:v:12:y:1996:i:6:p:509-523
    DOI: 10.1002/(SICI)1520-6297(199611/12)12:6<509::AID-AGR2>3.0.CO;2-7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Dillon M. Feuz & Scott W. Fausti & John J. Wagner, 1993. "Analysis of the efficiency of four marketing methods for slaughter cattle," Agribusiness, John Wiley & Sons, Ltd., vol. 9(5), pages 453-463.
    2. Scott W. Fausti & Dillon M. Feuz, 1995. "Production Uncertainty and Factor Price Disparity in the Slaughter Cattle Market: Theory and Evidence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 533-540.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Stringer, Randy & Sang, Naiquan & Croppenstedt, André, 2009. "Producers, Processors, and Procurement Decisions: The Case of Vegetable Supply Chains in China," World Development, Elsevier, vol. 37(11), pages 1773-1780, November.
    2. Wijnands, Jo H.M. & van der Lans, Karin & Hobbs, Jill E., 2006. "International Flower Networks: Transparency and Risks in Marketing Channel Choice," 99th Seminar, February 8-10, 2006, Bonn, Germany 7759, European Association of Agricultural Economists.
    3. Dickinson, David L. & Bailey, DeeVon, 2005. "Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(03), December.
    4. Noelke, Corinna M. & Caswell, Julie A., 2000. "A Model Of The Implementation Of Quality Management Systems For Credence Attributes," 2000 Annual meeting, July 30-August 2, Tampa, FL 21874, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Cook, Michael L. & Chaddad, Fabio R., 2000. "Agroindustrialization of the global agrifood economy: bridging development economics and agribusiness research," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
    6. Alpay, Savas & Yalcin, Ismet & Dolekoglu, Turker, 2001. "Export Performance Of Firms In Developing Countries And Food Quality And Safety Standards In Developed Countries," 2001 Annual meeting, August 5-8, Chicago, IL 20521, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Holleran, Erin & Bredahl, Maury E. & Zaibet, Lokman, 1999. "Private incentives for adopting food safety and quality assurance," Food Policy, Elsevier, vol. 24(6), pages 669-683, December.
    8. Ward, Ruby A. & Bailey, DeeVon & Jensen, Robert T., 2005. "An American BSE Crisis: Has it affected the Value of Traceability and Country-of-Origin Certifications for US and Canadian Beef?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 8(02).
    9. Harrison, R. Wes & Gillespie, Jeffrey & Fields, Deacue, 2005. "Analysis of Cardinal and Ordinal Assumptions in Conjoint Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(02), pages 238-252, October.
    10. Fertő, Imre & Szabó G., Gábor, 2004. "Értékesítési csatornák választása a magyar zöldség-gyümölcs szektorban. Esettanulmány
      [The choice of supply channels in the Hungarian fruit and vegetable sector - a case study]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 77-89.
    11. Bailey, DeeVon & Slade, Jeremy, 2004. "Factors Influencing Support For A National Animal Identification System In The United States," 2004 Annual meeting, August 1-4, Denver, CO 20293, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Freeman, Gusta, 2010. "Economics of Fertilizer Utilization in Small-Scale Farming Systems and Appropriate Role for Policy," Research Theses 157509, Collaborative Masters Program in Agricultural and Applied Economics.
    13. Naiquan Sang & Randy Stringer, 2003. "Food Safety Concerns and Changing Procurement Arrangements by Food Processors: A Conjoint Analysis," School of Economics Working Papers 2003-02, University of Adelaide, School of Economics.
    14. Liddell, Sterling & Bailey, DeeVon, 2001. "Market Opportunities And Threats To The U.S. Pork Industry Posed By Traceability Systems," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(03).
    15. Bensemann, Jessica & Shadbolt, Nicola, 2015. "Farmers’ Choice of Marketing Strategy: A Study of New Zealand Lamb Producers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 18(3).
    16. Jan Fałkowski, 2008. "Vertical coordination from the angle of farmer loyalty and access to credit. Evidence from the Polish dairy sector," Working Papers 2008-01, Faculty of Economic Sciences, University of Warsaw.
    17. Gerdoci, Blendi & Skreli, Engjell & Panariti, Suzana & Repaj, Ermira, 2016. "Relational Ties and Transaction Costs – The Moderating Role of Uncertainty," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(2).
    18. Nielsen, Niels Asger & Jeppesen, Lisbeth Fruensgaard, 2001. "The beef market in the European Union," MAPP Working Papers 75, University of Aarhus, Aarhus School of Business, The MAPP Centre.
    19. Darren Barber & Jill Hobbs & James Nolan, 2008. "Assessing Producer Stated Preferences for Identity Preservation in the Canadian Grain Handling and Transportation System," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 243-256, September.
    20. Harrison, R. Wes & Gillespie, Jeffrey M. & Fields, Deacue, 2001. "Theoretical And Empirical Considerations Of Eliciting Preferences And Model Estimation In Conjoint Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20680, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Martinez, Stephen W. & Zering, Kelly D., 2004. "Pork Quality And The Role Of Market Organizaton," Agricultural Economics Reports 33973, United States Department of Agriculture, Economic Research Service.

    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:wly:agribz:v:12:y:1996:i:6:p:509-523. 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: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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 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.

    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.