IDEAS home Printed from https://ideas.repec.org/p/ags/rpspwp/116103.html
   My bibliography  Save this paper

NE- 165 Case Study : LEANER PORK: Can New Sector Linkages Be Formed?

Author

Listed:
  • Coaldrake, Karen
  • Sonka, Steven T.

Abstract

A more demanding and evolving consumer is creating change in the market for pork and many working within the industry are predicting opportunities for leaner products. However, leaner pork enthusiasts also are frustrated by the established industry food chain that offers little incentive for modification. Modification would require change on the part of genetic suppliers, commercial producers, packers and processors, and retailers. However, many of these food chain participants traditionally have not collaborated with others in the sector. Yet the establishment of these new linkages may be key to the success of a leaner pork industry. This case study documents several of the activities currently occurring within the leaner pork industry and explores new linkages which may be critical in the future. Currently, genetic suppliers are struggling with short-term needs of producers, while attempting to look at the long-term demands of consumers. Hog producers have been profitable and lack incentives to alter practices which would produce leaner animals. Packers are interested in efficiently running large scale operations with large quantities of low cost meat. Retailers struggle with labeling inconsistencies and a low cost mentality that make it difficult to market leaner pork in the meatcase. Leaner pork enthusiasts are making strides to overcome the disadvantages found in the traditional system. Some genetic suppliers are now working with packers to determine animal quality beyond the producer's feedlot. Some packers are creating incentive programs that pay producers for leaner quality. These lean incentive programs may become more attractive for packers and producers if new technologies measuring lean become less prohibitive for larger operations. Many packers are moving into branded products, resulting in incentive programs for producers who supply animals with the desired quality. Overall, these efforts have remained a small portion of total pork industry activities.

Suggested Citation

  • Coaldrake, Karen & Sonka, Steven T., 1991. "NE- 165 Case Study : LEANER PORK: Can New Sector Linkages Be Formed?," Working Papers 116103, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  • Handle: RePEc:ags:rpspwp:116103
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/116103
    Download Restriction: no

    References listed on IDEAS

    as
    1. Morck, Randall & Shleifer, Andrei & Vishny, Robert W, 1990. " Do Managerial Objectives Drive Bad Acquisitions?," Journal of Finance, American Finance Association, vol. 45(1), pages 31-48, March.
    2. B. Espen Eckbo, 1986. "Mergers and the Market for Corporate Control: The Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 19(2), pages 236-260, May.
    3. Weston, J Fred & Mansinghka, Surendra K, 1971. "Tests of the Efficiency Performance of Conglomerate Firms," Journal of Finance, American Finance Association, vol. 26(4), pages 919-936, September.
    4. Richard A. Bettis & Vijay Mahajan, 1985. "Risk/Return Performance of Diversified Firms," Management Science, INFORMS, vol. 31(7), pages 785-799, July.
    5. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    6. Mueller, Dennis C., 1977. "The effects of conglomerate mergers : A survey of the empirical evidence," Journal of Banking & Finance, Elsevier, vol. 1(4), pages 315-347, December.
    7. Utton, M A, 1977. "Large Firm Diversification in British Manufacturing Industry," Economic Journal, Royal Economic Society, vol. 87(345), pages 96-113, March.
    8. Kaplan, Steven, 1989. "The effects of management buyouts on operating performance and value," Journal of Financial Economics, Elsevier, vol. 24(2), pages 217-254.
    9. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    10. Debra J. Aron, 1988. "Ability, Moral Hazard, Firm Size, and Diversification," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 72-87, Spring.
    11. Charles H. Berry, 1974. "Corporate Diversification and Market Structure," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 196-204, Spring.
    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. Ding, John Y. & Caswell, Julie A. & Zhou, Furen, 1997. "Relatedness And Performance: A Reexamination Of The Diversification-Performance Link," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(1), February.
    2. Caswell, Julie A. & Kleinschmit, Jaana K., 1993. "Economic Criteria for Settling Federalism Disputes with an Application to Food Safety Regulation," Working Papers 116114, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    3. Ding, John Y. & Caswell, Julie A. & Rogers, Richard T., 1993. "Restructuring's Effect on Related and Unrelated Diversification Among Top Food Manufacturing Firms in the 1980s," Working Papers 116118, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.

    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:ags:rpspwp:116103. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/drumaus.html .

    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.