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Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products

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  • Martinez, Stephen W.

Abstract

Recent changes in structure of the U.S. pork industry reflect, in many ways, past changes in the broiler industry. Production contracts and vertical integration in the broiler industry facilitated rapid adoption of new technology, improved quality control, assured market outlets for broilers, and provided a steady flow of broilers for processing. Affordable, high-quality chicken products have contributed to continual increases in U.S. chicken consumption, which has surpassed pork and beef on a per capita basis. Incentives for contracting and vertical integration in the pork industry may yield comparable results. If so, these arrangements might be expected to result in larger supplies of higher quality pork products at economical prices.

Suggested Citation

  • Martinez, Stephen W., 1999. "Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products," Agricultural Economics Reports 34031, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uerser:34031
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    File URL: http://purl.umn.edu/34031
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    References listed on IDEAS

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    1. David A. Hennessy, 1996. "Information Asymmetry as a Reason for Food Industry Vertical Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1034-1043.
    2. Alan Barkema & Michael L. Cook, 1993. "The changing U.S. pork industry: a dilemma for public policy," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 49-65.
    3. Rogers, Richard T., 1992. "Broilers -- Differentiating A Commodity," Research Reports 25178, University of Connecticut, Food Marketing Policy Center.
    4. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    5. V. James Rhodes, 1995. "The Industrialization of Hog Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(2), pages 107-118.
    6. Elitzak, Howard, 1999. "Food Cost Review, 1950-97," Agricultural Economics Reports 34053, United States Department of Agriculture, Economic Research Service.
    7. Shelanski, Howard A & Klein, Peter G, 1995. "Empirical Research in Transaction Cost Economics: A Review and Assessment," Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(2), pages 335-361, October.
    8. Brester, Gary W. & Schroeder, Ted C. & Mintert, James R., 1997. "Challenges to the Beef Industry," Choices, Agricultural and Applied Economics Association, vol. 12(4).
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