Meatpacking Concentration: Implications for Supply Chain Performance

Rigoberto A. López and Luis Seoane

No 341195, 2023 Annual Meeting, July 23-25, Washington D.C. from Agricultural and Applied Economics Association

Abstract: The meatpacking industry is a crucial intermediary between ranchers and the downstream supply chain, and concentration within the industry has significant implications for stakeholders in terms of competition and transmission of efficiencies. Due to constraints on the efficient transportation of live animals over long distances, ranchers primarily operate within regional markets. In this paper we provide new knowledge about the degree of regional concentration in the beef packing industry and propose a model to examine its impact on the wholesale farm-price spread. Findings indicate a significant increase in concentration across all regions, with some regions experiencing up to a 300 percent rise in the Herfindahl index, although concentration levels vary considerably among the different regions.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Pages: 30
Date: 2024-04
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea23:341195

DOI: 10.22004/ag.econ.341195

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