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Vertical coordination in the US pork industry: Status, motivations, and expectations

Author

Listed:
  • John D. Lawrence

    (Economics Department, Iowa State University, Ames, IA)

  • V. James Rhodes

    (Department of Agricultural Economics, University of Missouri, Columbia, MO)

  • Glenn A. Grimes

    (Department of Agricultural Economics, University of Missouri, Columbia, MO)

  • Marvin L. Hayenga

    (Economics Department, Iowa State University, Ames, IA)

Abstract

In addition to horizontal consolidation at the input, production, and processing subsectors, the US pork industry is becoming more vertically aligned. The largest hog producers and pork processors were surveyed regarding their involvement in vertical coordination arrangements and their plans for future involvement in such programs. Motivation for entering these vertical agreements was examined as was the rate of adoption. Structural and regional implications of these results for the pork industry are discussed. © 1997 John Wiley & Sons, Inc.

Suggested Citation

  • John D. Lawrence & V. James Rhodes & Glenn A. Grimes & Marvin L. Hayenga, 1997. "Vertical coordination in the US pork industry: Status, motivations, and expectations," Agribusiness, John Wiley & Sons, Ltd., vol. 13(1), pages 21-31.
    • Handle: RePEc:wly:agribz:v:13:y:1997:i:1:p:21-31
    DOI: 10.1002/(SICI)1520-6297(199701/02)13:1<21::AID-AGR3>3.0.CO;2-P
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    References listed on IDEAS

    as
    1. Mighell, Ronald L. & Jones, Lawrence A., 1963. "Vertical Coordination in Agriculture," Agricultural Economic Reports 307164, United States Department of Agriculture, Economic Research Service.
    2. Perry, Martin K., 1989. "Vertical integration: Determinants and effects," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 4, pages 183-255, Elsevier.
    3. Katz, Michael L., 1989. "Vertical contractual relations," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 11, pages 655-721, Elsevier.
    4. Hayenga, Marvin L. & Rhodes, V. James & Grimes, Glenn & Lawrence, John D., 1996. "Vertical Coordination in Hog Production," Staff General Research Papers Archive 10561, Iowa State University, Department of Economics.
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    Citations

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    Cited by:

    1. 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.
    2. Dermot J. Hayes & Lee L. Schulz & Chad E. Hart & Keri L. Jacobs, 2021. "A descriptive analysis of the COVID‐19 impacts on U.S. pork, turkey, and egg markets," Agribusiness, John Wiley & Sons, Ltd., vol. 37(1), pages 122-141, January.
    3. Parwez, Sazzad, 2015. "A Conceptual Model for Integration of Indian Food Supply chains," MPRA Paper 73310, University Library of Munich, Germany, revised 09 Aug 2015.
    4. Monia Ben-Kaabia & José M. Gil & Mehrez Ameur, 2005. "Vertical integration and non-linear price adjustments: The Spanish poultry sector," Agribusiness, John Wiley & Sons, Ltd., vol. 21(2), pages 253-271.
    5. Jeffrey M. Gillespie & Joan R. Fulton, 2001. "A Markov chain analysis of the size of hog production firms in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 557-570.
    6. Lawrence, John D. & Grimes, Glenn & Hayenga, Marvin, 1998. "Production and Marketing Characteristics of U.S. Pork Producers, 1997-1998," ISU General Staff Papers 199812010800001311, Iowa State University, Department of Economics.
    7. W. H. Furtan & J. Sauer, 2008. "Determinants of Food Industry Performance: Survey Data and Regressions for Denmark," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 555-573, September.
    8. Ross, Brent & Barry, Peter, 2005. "Contract Hog Production: A Case Study of Financial Arrangements," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2005, pages 1-6.
    9. Adhikari, Bishwa B. & Harsh, Stephen B. & Cheney, Laura Martin, 2003. "Factors Affecting Regional Shifts Of U.S Pork Production," 2003 Annual meeting, July 27-30, Montreal, Canada 22200, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Parwez, Sazzad, 2015. "A Conceptual Model for Integration of Indian Food Supply chains," MPRA Paper 73263, University Library of Munich, Germany, revised 09 Aug 2015.
    11. Sazzad Parwez, 2016. "A Conceptual Model for Integration of Indian Food Supply Chains," Global Business Review, International Management Institute, vol. 17(4), pages 834-850, August.
    12. 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.
    13. 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.
    14. 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.

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