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Concentration in Beef Packing and Slaughter Cattle Pricing

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  • Love, H. Alan
  • Capps, Oral, Jr.
  • Williams, Gary W.

Abstract

We empirically investigate the effects of beef packer concentration and size efficiencies, packer procurement and pricing methods, and other market variables and quality characteristics on the prices paid by packers for slaughter cattle. We find that packers pay less for fed cattle in more concentrated regions. However, we find that concentration is only one of numerous market factors determining fed cattle prices and less important than many. Quality variables controlled by sellers, like cattle type, are more important in determining the price paid by packers than packer concentration, size economies, procurement methods, or other variables outside seller control.

Suggested Citation

  • Love, H. Alan & Capps, Oral, Jr. & Williams, Gary W., 2009. "Concentration in Beef Packing and Slaughter Cattle Pricing," Reports 90493, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    • Handle: RePEc:ags:tamagr:90493
    DOI: 10.22004/ag.econ.90493
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    Cited by:

    1. Panagiotou, Dimitrios & Stavrakoudis, Athanassios, 2017. "Vertical price relationships between different cuts and quality grades in the U.S. beef marketing channel: A wholesale-retail analysis," The Journal of Economic Asymmetries, Elsevier, vol. 16(C), pages 53-63.
    2. Ted C. Schroeder & Brian K. Coffey & Glynn T. Tonsor, 2023. "Hedonic modeling to facilitate price reporting and fed cattle market transparency," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1716-1733, September.

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