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A Theory Of Packer Self Production In The Swine Industry

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  • Reimer, Jeffrey J.

Abstract

An analytical model is developed to explain the increasing tendency of pork packers to produce their own hogs. Upstream integration is motivated by recent events including increasing hog buyer consolidation and a need for traceability, but is held in check since it lowers upstream managerial incentives to make non-contractible investments.

Suggested Citation

  • Reimer, Jeffrey J., 2004. "A Theory Of Packer Self Production In The Swine Industry," 2004 Annual meeting, August 1-4, Denver, CO 19936, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:19936
    DOI: 10.22004/ag.econ.19936
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    References listed on IDEAS

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    1. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-1158, December.
    2. David A. Hennessy & John D. Lawrence, 1999. "Contractual Relations, Control, and Quality in the Hog Sector," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 52-67.
    3. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    4. John D. Lawrence & Ted C. Schroeder & Marvin L. Hayenga, 2001. "Evolving Producer-Packer-Customer Linkages in the Beef and Pork Industries," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 23(2), pages 370-385.
    5. Lawrence, John & Grimes, Glenn, 2001. "Production and Marketing Characteristics of U.S. Pork Producers, 2000," ISU General Staff Papers 200108010700001344, Iowa State University, Department of Economics.
    6. Martinez, Stephen W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economic Reports 34051, United States Department of Agriculture, Economic Research Service.
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    Keywords

    Livestock Production/Industries;

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