ESTIMATED IMPACT OF NON-PRICE COORDINATION OF FED CATTLE PURCHASES ON MEAT PACKER PROCESSING COSTS

Stochastic simulation of daily slaughter level was used in conjunction with an estimated packing plant cost curve to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to $5 per head may be possible. Savings result from ensuring a more stable processing volume that is near the plant's cost-minimizing level of production.

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Year of publication:	2003
Authors:	Anderson, John D. ; Trapp, James N. ; Fleming, Ronald A.
Published in:	Journal of Agribusiness. - Agricultural Economics Association of Georgia - AEAG. - Vol. 21.2003, 2
Publisher:	Agricultural Economics Association of Georgia - AEAG
Subject:	cattle \| cost curve \| meat packing \| vertical coordination \| Industrial Organization \| Livestock Production/Industries

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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