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U.S. Beef Industry: Cattle Cycles, Price Spreads, and Packer Concentration AgEcon
Mathews, Kenneth H., Jr.; Hahn, William F.; Nelson, Kenneth E.; Duewer, Lawrence A.; Gustafson, Ronald A..
In early 1996, the peak in the current cycle of cattle inventories coincided with a long list of negative factors--negative returns at the farm and feedlot, record-high feed grain prices, a severe drought in 1995-96, widening farm-retail price spreads, a low farmers' share of the consumers' Choice beef dollar, and reports of high profits for beefpackers. This confluence created an atmosphere in which some producers and members of Congress questioned whether the cattle industry was adversely affected by high packer concentration and market power. In this report, we examine the cattle cycle of the 1990's to determine if there are differences from previous cattle cycles and, if so, how and why they are different. We found that values for many variables at the...
Tipo: Report Palavras-chave: Cattle cycles; Price spreads; Packer concentration; Cattle slaughter; Steer and heifer slaughter; Cow slaughter; Livestock Production/Industries.
Ano: 1999 URL: http://purl.umn.edu/33583
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TECHNOLOGICAL CHANGE IN THE U.S. BEEF AND PORK SECTORS: IMPACTS ON FARM-WHOLESALE MARKETING MARGINS AND LIVESTOCK PRICES AgEcon
Marsh, John M.; Brester, Gary W..
Real livestock prices and farm-wholesale marketing margins have steadily declined over the past 20 years. Many studies have examined the effects of increasing packer concentration on these declines. However, most have generally failed to account directly for technological change in livestock production and red meat slaughtering. We estimate reduced form models for beef and pork farm-wholesale marketing margins and cattle and hog prices that specifically include measures of technological change. Empirical results indicate that meat packing technology has reduced real margins and technological change embodied in cattle and hog production accounts for substantial declines in real slaughter cattle and hog prices. When technological change is explicitly...
Tipo: Working or Discussion Paper Palavras-chave: Livestock prices; Marketing margins; Packer concentration; Technological change; Marketing; Research and Development/Tech Change/Emerging Technologies; D4.
Ano: 1999 URL: http://purl.umn.edu/29242
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