Multi-plant coordination in the U.S. beef packing industry

IF 4.2 2区 经济学 Q1 AGRICULTURAL ECONOMICS & POLICY American Journal of Agricultural Economics Pub Date : 2023-03-23 DOI:10.1111/ajae.12391
Christopher C. Pudenz, Lee L. Schulz
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引用次数: 2

Abstract

Most U.S. beef packers with multiple plants now openly employ multi-plant coordination. Using a Salop Circular City framework that includes negotiated and formula pricing, we demonstrate that multi-plant coordination leads to wider spreads between downstream beef prices and upstream fed cattle prices if multi-plant coordination markdowns outweigh multi-plant coordination efficiencies. Taken together with market concentration, geography and transportation costs, and cattle cycles and related beef packer capacity utilization, multi-plant coordination helps explain persistently wide farm-to-wholesale beef price spreads. We find that, as cattle inventories decline, a multi-plant coordinator will permanently shut down a plant before the same plant run as a separate profit center will shut down, which is consistent with packer behavior in recent years. We also demonstrate that adding a strategically-located packing plant, owned by an entrant firm, can narrow price spreads. This framework is important for ongoing policy discussions regarding the structure, conduct, and performance of the beef packing industry.

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美国牛肉包装行业的多工厂协调
在过去的十年里,美国牛肉包装商公开开始采用多工厂合作。本文采用Salop Circular City框架来证明牛肉包装商有效实施多工厂协调可以消除导致下游牛肉价格和上游饲养牛价格之间相关性的企业内部力量。综合考虑市场集中度、地理和运输成本影响、替代营销安排、牛周期和相关牛肉包装机产能利用率,多工厂协调有助于解释在没有任何明显市场冲击的情况下,从农场到批发的牛肉价格差仍然很大。2021年观察到了这种牛肉价格蔓延行为,在此期间,牛肉价格似乎与饲养牛的价格脱节。我们进一步证明,增加一家位于战略位置的包装厂,由另一家公司所有,可以恢复牛肉价格和饲养牛价格之间的相关性。总的来说,我们的研究结果对当前的政策和行业审议有影响,也为未来的研究提供了途径。
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来源期刊
American Journal of Agricultural Economics
American Journal of Agricultural Economics 管理科学-农业经济与政策
CiteScore
9.10
自引率
4.80%
发文量
77
审稿时长
12-24 weeks
期刊介绍: The American Journal of Agricultural Economics provides a forum for creative and scholarly work on the economics of agriculture and food, natural resources and the environment, and rural and community development throughout the world. Papers should relate to one of these areas, should have a problem orientation, and should demonstrate originality and innovation in analysis, methods, or application. Analyses of problems pertinent to research, extension, and teaching are equally encouraged, as is interdisciplinary research with a significant economic component. Review articles that offer a comprehensive and insightful survey of a relevant subject, consistent with the scope of the Journal as discussed above, will also be considered. All articles published, regardless of their nature, will be held to the same set of scholarly standards.
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