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Market concentration and vertical coordination in the pork industry: Implications for public policy analysis


  • Philip L. Paarlberg

    (Department of Agricultural Economics, 1145 Krannert Building, Purdue University, West Lafayette, IN 47907)

  • Mildred M. Haley

    (Economic Research Service, U.S. Department of Agriculture, 1800 M Street NW, Washington, DC 20036)


Concentration in the pork industry has increased and spawned concerns over market power. Agricultural policy instruments operate differently under imperfect competition. This article analyzes the impacts of policy instruments when the pork industry is assumed to be imperfectly competitive. The arguments are made that policy instruments can be categorized into those with impacts independent of market conduct and those with impacts dependent on market conduct. If the policy objective is to raise swine grower welfare, markets need to remain open to trade, the use of quantitative policy instruments should be avoided, and domestic subsidies to packers must be effective. [Econ Lit citation: L130, L660, Q118] © 2001 John Wiley & Sons, Inc.

Suggested Citation

  • Philip L. Paarlberg & Mildred M. Haley, 2001. "Market concentration and vertical coordination in the pork industry: Implications for public policy analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 197-212.
  • Handle: RePEc:wly:agribz:v:17:y:2001:i:2:p:197-212 DOI: 10.1002/agr.1011

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    References listed on IDEAS

    1. Hayenga, Marvin L., 1998. "Cost Structures of Pork Slaughter and Processing Firms: Behavioral and Performance Implications," Staff General Research Papers Archive 1254, Iowa State University, Department of Economics.
    2. Schroeter, John R, 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 158-162, February.
    3. A. M. Azzam, 1992. "Testing The Competitiveness Of Food Price Spreads," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 248-256.
    4. James M. MacDonald & Michael E. Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 334-346.
    5. Deodhar, Satish Y. & Sheldon, Ian M., 1997. "Market Power In The World Market For Soymeal Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July.
    6. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
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