Analysis of Marketing Margins in the U.S. Lamb Industry

Oral Capps, Patrick J. Byrne and Gary W. Williams
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Oral Capps: Texas A&M University
Patrick J. Byrne: University of Florida
Gary W. Williams: Texas A&M University

Agricultural and Resource Economics Review, 1995, vol. 24, issue 2, pages 232-240

Abstract: Factors affecting marketing margins were identified and assessed using a relative price spread technique. Margins were disaggregated into slaughter-to-wholesale and wholesale-to-retail for a more complete understanding. Marketing costs, concentration, demand, and price were used to explain variations within these margins. Results showed that packer concentration had a significant effect on margins. Forces of supply and demand (as represented by production and market price) and changes in marketing costs also explained the variation in margins. A higher degree of price transmission from slaughter-to-wholesale level was observed in comparison to the wholesale-to-retail level.

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