Downstream Meat Marketing Practices: Lessons Learned from the Livestock and Meat Marketing Study

In 2003, Congress mandated a study of the effects of alternative marketing arrangements (AMAs) on livestock and meat markets. This paper summarizes the results of analyses on the distribution and sales of beef and pork products downstream from the packer from Volume 2 (Cates et al., 2007) and Volume 6 (Muth et al., 2007) of the GIPSA Livestock and Meat Marketing Study. Surveys of downstream market participants were used to analyze the extent of AMA use and the reasons for using the purchase and pricing method chosen. Particular issues of interest included whether AMA use at the producer-packer level extends downstream to processors, wholesalers, retailers, and food service operators; why downstream businesses use various marketing arrangements; and whether particular marketing arrangements are used to reduce costs, are used to improve quality, or are required by other participants in the supply chain.