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Concentration in Beef Packing and Slaughter Cattle Pricing

H. Love, Oral Capps and Gary Williams

No 90493, Reports from Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center

Abstract: We empirically investigate the effects of beef packer concentration and size efficiencies, packer procurement and pricing methods, and other market variables and quality characteristics on the prices paid by packers for slaughter cattle. We find that packers pay less for fed cattle in more concentrated regions. However, we find that concentration is only one of numerous market factors determining fed cattle prices and less important than many. Quality variables controlled by sellers, like cattle type, are more important in determining the price paid by packers than packer concentration, size economies, procurement methods, or other variables outside seller control.

Keywords: Demand and Price Analysis; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 27
Date: 2009-07
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Journal Article: Concentration In Beef Packing and Slaughter Cattle Pricing (2010) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:tamagr:90493

DOI: 10.22004/ag.econ.90493

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