Evolving Producer-Packer-Customer Linkages in the Beef and Pork Industries

John D. Lawrence, Ted Schroeder and Marvin L. Hayenga

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: The US pork and beef sectors are rapidly moving from traditional cash markets to formal vertical linkages. In 1999, 27% of Hogs and 65% of cattle were traded in the cash market and packers owned 18% of hogs and 5% of cattle; the rest were procured via marketing contracts. Contrary to popular opinion that plant efficiency is the impetus for the change, packers clearly identified quality concerns as the dominant reason for using marketing contracts or self production. Quality standards and procurement systems to achieve them will increase in importance with the introduction of more branded pork and beef products.

Date: 2001-10-01
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Published in Review of Agricultural Economics, October 2001, vol. 23 no. 2, pp. 370-385

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Journal Article: Evolving Producer-Packer-Customer Linkages in the Beef and Pork Industries (2001)
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