Consolidation In U.S. Meatpacking
Meatpacking consolidated rapidly in the last two decades: slaughter plants became much larger, and concentration increased as smaller firms left the industry. We use establishment-based data from the U.S. Census Bureau to describe consolidation and to identify the roles of scale economies and technological change in driving consolidation. Through the 1970's, larger plants paid higher wages, generating a pecuniary scale diseconomy that largely offset the cost advantages that technological scale economies offered large plants. The larger plants' wage premium disappeared in the 1980's, and technological change created larger and more extensive technological scale economies. As a result, large plants realized growing cost advantages over smaller plants, and production shifted to larger plants.
|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Postal: 1400 Independence Ave.,SW, Mail Stop 1800, Washington, DC 20250-1800|
Web page: http://www.ers.usda.gov/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, November.
- Hayenga, Marvin L. & Koontz, Stephen R. & Schroeder, Ted C., 1996. "Definition of Regional Cattle Procurement Markets," Staff General Research Papers Archive 10562, Iowa State University, Department of Economics.
- Edward C. Kokkelenberg & Donna R. Sockell, 1985. "Union Membership in the United States, 1973â€“1981," ILR Review, Cornell University, ILR School, vol. 38(4), pages 497-543, July.
- Morrison Paul, Catherine J., 2000. "Cost Economies and Market Power in U.S. Beef Packing," Monographs, University of California, Davis, Giannini Foundation, number 11934.
- Ollinger, Michael & MacDonald, James M. & Madison, Milton E., 2000. "Structural Change In U.S. Chicken And Turkey Slaughter," Agricultural Economics Reports 34049, United States Department of Agriculture, Economic Research Service.
- V. Eldon Ball & Robert G. Chambers, 1982. "An Economic Analysis of Technology in the Meat Products Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 699-709.
- Gallant, A. Ronald & Jorgenson, Dale W., 1979. "Statistical inference for a system of simultaneous, non-linear, implicit equations in the context of instrumental variable estimation," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 275-302.
- Melton, Brian & Huffman, Wallace, 1995.
"Beef and Pork Packing Costs and Input Demands: Effects of Unionization and Technology,"
Staff General Research Papers Archive
5043, Iowa State University, Department of Economics.
- Bryan E. Melton & Wallace E. Huffman, 1995. "Beef and Pork Packing Costs and Input Demands: Effects of Unionization and Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 471-485.
- Clement E. Ward, 1990. "Meatpacking plant capacity and utilization: Implications for competition and pricing," Agribusiness, John Wiley & Sons, Ltd., vol. 6(1), pages 65-73.
- James M. MacDonald & Michael E. Ollinger & Kenneth E. Nelson & Charles R. Handy, 1996. "Structural Change in Meat Industries: Implications for Food Safety Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 780-785.
- Baltagi, Badi H & Griffin, James M & Rich, Daniel P, 1995. "Airline Deregulation: The Cost Pieces of the Puzzle," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 245-60, February.
When requesting a correction, please mention this item's handle: RePEc:ags:uerser:34021. 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)
If references are entirely missing, you can add them using this form.