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Structural Change In U.S. Chicken And Turkey Slaughter

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  • Ollinger, Michael
  • MacDonald, James M.
  • Madison, Milton E.

Abstract

Cost function analyses using data from the U.S. Bureau of the Census reveal substantial scale economies in chicken and turkey slaughter. These economies show no evidence of diminishing as plant size increases, are much greater than those realized in cattle and hog slaughter, and have resulted in a huge increase in plant size over the 1972-92 period. The findings also suggest that consolidation in the chicken and turkey slaughter industry is likely to continue, particularly if the growth in the demand for poultry diminishes.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uerser:34049
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    File URL: http://purl.umn.edu/34049
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Morrison Paul, Catherine J., 2000. "Cost Economies and Market Power in U.S. Beef Packing," Monographs, University of California, Davis, Giannini Foundation, number 11934.
    4. Knoeber, Charles R, 1989. "A Real Game of Chicken: Contracts, Tournaments, and the Production of Broilers," Journal of Law, Economics, and Organization, Oxford University Press, vol. 5(2), pages 271-292, Fall.
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    Cited by:

    1. MacDonald, James M. & Ollinger, Michael & Nelson, Kenneth E. & Handy, Charles R., 2000. "Consolidation In U.S. Meatpacking," Agricultural Economics Reports 34021, United States Department of Agriculture, Economic Research Service.
    2. Ollinger, Michael & Nguyen, Sang V. & Blayney, Donald P. & Chambers, William & Nelson, Kenneth B., 2005. "Effect of Food Industry Mergers and Acquisitions on Employment and Wages," Economic Research Report 7250, United States Department of Agriculture, Economic Research Service.
    3. William E. Nganje & Mounir Siaplay & Simeon Kaitibie & Emmanuel T. Acquah, 2006. "Predicting food safety losses in turkey processing and the economic incentives of hazard analysis and critical control point (HACCP) intervention," Agribusiness, John Wiley & Sons, Ltd., vol. 22(4), pages 475-489.
    4. Ollinger, Michael & Nguyen, Sang V. & Blayney, Donald P. & Chambers, William & Nelson, Kenneth B., 2006. "Food Industry Mergers and Acquisitions Lead to Higher Labor Productivity," Economic Research Report 7246, United States Department of Agriculture, Economic Research Service.
    5. Rude, James & Fulton, Murray E., 2002. "Concentration And Market Power In Canadian Agribusiness," Structural Change as a Source of Trade Disputes Under NAFTA; Proceedings of the 7th Agricultural and Food Policy Systems Information Workshop - 2001 16873, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    6. Aguero, Jorge M. & Gould, Brian W., 2004. "Structural Change In U.S. Cheese Manufacturing: A Translog Cost Analysis Of A Panel Of Cheese Plants," 2004 Annual meeting, August 1-4, Denver, CO 20274, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Chang, Hui-Shung, 2. "Overview of the World Broiler Industry: Implications for the Philippines," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 4(2).
    8. Lee, Chinkook & Schluter, Gerald E., 2001. "Consolidation, Economies Of Scale, And The Heckshcer-Ohlin Theory Of Trade - An Empirical Analysis Of Us Meat Processing Industry," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14559, International Agricultural Trade Research Consortium.
    9. Hui-Shung Chang, 2007. "Overview of the World Broiler Industry: Implications for the Philippines," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 4(2), pages 67-82, December.
    10. 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.
    11. Ollinger, Michael & Nguyen, Sang V. & Blayney, Donald P. & Chambers, William & Nelson, Kenneth B., 2005. "Structural Change in the Meat, Poultry, Dairy and Grain Processing Industries," Economic Research Report 7217, United States Department of Agriculture, Economic Research Service.
    12. Schluter, Gerald E. & Lee, Chinkook, 2004. "Is There a Link between the Changing Skills of Labor Used in U.S. Processed Food Trade and Rural Employment?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(03), December.
    13. Ollinger, Michael & Ralston, Katherine L. & Guthrie, Joanne F., 2011. "School Breakfast and Lunch Costs: Are There Economies of Scale?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103191, Agricultural and Applied Economics Association.
    14. Sang V. Nguyen & Michael Ollinger, 2009. "Mergers and acquisitions, employment, wages, and plant closures in the U.S. meat product industries," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 70-89.

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