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Comparative analysis of cattle slaughtering and fabricating costs


  • Clement E. Ward

    (Professor and Extension Economist with Oklahoma State University)


Economies of size studies can be categorized according to the methodology employed. Two recent studies for cattle slaughtering and beef fabrication that varied widely in methodology and data were compared using a binary variable regression model. Despite differences in data and the methodology chosen, the comparative analysis showed that results from the two studies were similar. Estimated minimum costs and associated annual volumes were sensitive to inclusion or exclusion of the smallest plant size in one study. Minimum cost annual volumes varied over a relatively wide range, suggesting a flat long-run average cost curve at higher volumes, with only a small effect on average total cost. © 1993 John Wiley & Sons, Inc.

Suggested Citation

  • Clement E. Ward, 1993. "Comparative analysis of cattle slaughtering and fabricating costs," Agribusiness, John Wiley & Sons, Ltd., vol. 9(5), pages 441-451.
  • Handle: RePEc:wly:agribz:v:9:y:1993:i:5:p:441-451 DOI: 10.1002/1520-6297(199309)9:5<441::AID-AGR2720090503>3.0.CO;2-9

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    References listed on IDEAS

    1. Murty, K. N., 1980. "Consumer behaviour in India : An application of the Rotterdam demand system," European Economic Review, Elsevier, vol. 14(2), pages 221-235.
    2. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    3. Clements, Kenneth W & Selvanathan, Antony & Selvanathan, Saroja, 1996. "Applied Demand Analysis: A Survey," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 63-81, March.
    4. Klevmarken, N. Anders, 1979. "A comparative study of complete systems of demand functions," Journal of Econometrics, Elsevier, vol. 10(2), pages 165-191, June.
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    Cited by:

    1. Koontz, Stephen R. & Purcell, Wayne D., 2000. "Research Programs To Address Price Discovery Concerns," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36421, Western Agricultural Economics Association.
    2. Lynn Hunnicutt & DeeVon Bailey & Michelle Crook, 2002. "Measuring Market Power with Variables Other than Price," Working Papers 2002-08, Utah State University, Department of Economics.
    3. Muth, Mary K. & Karns, Shawn A. & Wohlgenant, Michael K. & Anderson, Donald W., 2002. "Exit Of Meat Slaughter Plants During Implementation Of The Pr/Haccp Regulations," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July.
    4. Ward, Clement E. & Koontz, Stephen R. & Schroeder, Ted C., 1998. "Impacts From Captive Supplies On Fed Cattle Transaction Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
    5. Ward, Clement E., 2002. "A Review of Causes for and Consequences of Economic Concentration in the U.S. Meatpacking Industry," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 03.
    6. Ola Kvaløy & Ragnar Tveterås, 2008. "Cost Structure and Vertical Integration between Farming and Processing," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 296-311, June.
    7. Stephen R. Koontz & Derrell S. Peel & James N. Trapp & Clement E. Ward, 1995. "Employee cross training with a market simulator: An agribusiness application of experiential learning," Agribusiness, John Wiley & Sons, Ltd., vol. 11(6), pages 513-521.
    8. Hennessy, David A., 1996. "Information Asymmetry As a Reason for Vertical Integration," Staff General Research Papers Archive 10422, Iowa State University, Department of Economics.
    9. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economics Reports 33975, United States Department of Agriculture, Economic Research Service.
    10. Clement E. Ward & Jong-In Lee, 2002. "Impacts from meatpacking firm mergers in an experimental market," Agribusiness, John Wiley & Sons, Ltd., vol. 18(2), pages 247-260.
    11. Stephen R. Koontz & John D. Lawrence, 2010. "Impacts of alternative marketing agreement cattle procurement on packer costs, gross margins, and profits: evidence from plant-level profit and loss data," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 1-24.

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