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Beef and Pork Packing Costs and Input Demands: Effects of Unionization and Technology

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  • Bryan E. Melton
  • Wallace E. Huffman

Abstract

The effects of unionization, technology, and structural considerations on value-added beef and pork packing costs and the demand for labor, capital, packaging, and other inputs are analyzed by econometric methods for the period 1963–88. Although unions do not appear to have had significant wage effects over this period (relative to broader U.S. wage rates), significant nonwage cost effects are observed. These nonwage effects help explain the technological, structural, and geographic changes that have occurred in meat packing in recent years which, in turn, help explain the erosion of union strength in meat packing observed over the study period.

Suggested Citation

  • Bryan E. Melton & Wallace E. Huffman, 1995. "Beef and Pork Packing Costs and Input Demands: Effects of Unionization and Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 471-485.
    • Handle: RePEc:oup:ajagec:v:77:y:1995:i:3:p:471-485.
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    Cited by:

    1. Wallace HUFFMAN & John A. MIRANOWSKI, 1996. "Immigration, Meat Packing, And Trade: Implications For Iowa," Staff Papers 285, Iowa State University Department of Economics.
    2. Morrison Paul, Catherine J., 1999. "Production Structure And Trends In The U.S. Meat And Poultry Products Industries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-18, December.
    3. Ollinger, Michael, 2008. "Structural Change in the Meat and Poultry Industry and the Pathogen Reduction Hazard Analysis Critical Control Point Rule," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 36747, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Martinez, Steve & Zering, Kelly, 1997. "Vertical Coordination and Consumer Welfare: The Case of the Pork Industry," Agricultural Economic Reports 262048, United States Department of Agriculture, Economic Research Service.
    5. Mark Drabenstott & Mark Henry & Kristin Mitchell, 1999. "Where have all the packing plants gone? : the new meat geography in rural America," Economic Review, Federal Reserve Bank of Kansas City, vol. 84(Q III), pages 65-82.
    6. Klein, Nicole L. & Brester, Gary W., 1997. "Economic Impacts of the Zero Tolerance Directive on the Cost Structure of Beef Packing Companies," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35743, Western Agricultural Economics Association.
    7. Jensen, Helen H. & Unnevehr, Laurian J. & Gomez, Miguel I., 1998. "Costs Of Improving Food Safety In The Meat Sector," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(1), pages 1-12, July.
    8. Jensen, Helen H. & Unnevehr, Laurian J., 1999. "HACCP in Pork Processing: Costs and Benefits," Staff General Research Papers Archive 1632, Iowa State University, Department of Economics.
    9. Boonsaeng, Tullaya & Wohlgenant, Michael K., 2006. "The Demand for Livestock by the U.S. Meat Processing Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21120, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Hayenga, Marvin L., 1997. "Cost Structures of Pork Slaughter and Processing Firms: Behavioral and Performance Implications," ISU General Staff Papers 199705200700001287, Iowa State University, Department of Economics.
    11. Vera Sadovska & Lena Ekelund Axelson & Cecilia Mark-Herbert, 2020. "Reviewing Value Creation in Agriculture—A Conceptual Analysis and a New Framework," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    12. Productivity Commission, 2002. "Work Arrangements in the Australian Meat Processing Industry," Microeconomics 0207012, University Library of Munich, Germany.
    13. MacDonald, James M. & Ollinger, Michael & Nelson, Kenneth E. & Handy, Charles R., 2000. "Consolidation In U.S. Meatpacking," Agricultural Economic Reports 34021, United States Department of Agriculture, Economic Research Service.
    14. Poray, Michael C. & Gray, Allan W. & Boehlje, Michael & Preckel, Paul V., 2003. "Evaluation of Alternative Coordination Systems Between Producers and Packers in the Pork Value Chain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 6(2), pages 1-21.
    15. James M. MacDonald & Michael E. Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 334-346.
    16. Siebert, John W. & Nayga, Rodolfo M., Jr. & Thelen, Gina C. & Kuker, Don, 2000. "Enhancing The Financial Performance Of Small Meat Processors," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-12.
    17. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    18. Yin Xia & Steven Buccola, 2002. "Size, cost, and productivity in the meat processing industries," Agribusiness, John Wiley & Sons, Ltd., vol. 18(3), pages 283-299.
    19. Marvin L. HAYENGA, 1997. "Cost Structures Of Pork Slaughter And Processing Firms: Behavioral And Performance Implications," Staff Papers 287, Iowa State University Department of Economics.
    20. Marsh, John M. & Brester, Gary W., 2004. "Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(1), pages 1-20, April.
    21. Poray, Michael C. & Gray, Allan W. & Boehlje, Michael, 2002. "Evaluation of Alternative Coordination Systems Between Producers and Packers in the Pork Value Chain," Staff Papers 200386, Purdue University, Department of Agricultural Economics.
    22. Holloway, Garth J. & Hertel, Thomas W. & Han, Frank M., 1997. "Does Market Power Matter?," Working Papers 225884, University of California, Davis, Department of Agricultural and Resource Economics.
    23. Xia, Yin & Buccola, Steven T., 2000. "Technological Performance In Meat Processing And Implications For Policy," 2000 Annual meeting, July 30-August 2, Tampa, FL 21862, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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