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Wiley InterScience

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Evolving Producer–Packer–Customer Linkages in the Beef and Pork Industries
John D. Lawrence, Ted C. Schroeder & Marvin L. Hayenga
  1 Department of Economics, Iowa State University,   2 Department of Agricultural Economics, Kansas State University
Copyright American Agricultural Economics Association 2001

ABSTRACT

The U.S. 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.


DIGITAL OBJECT IDENTIFIER (DOI)
10.1111/1467-9353.00067 About DOI

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