Changing Concentration in the Beef and Pork Industries and the Degree of Competition

The four fm concentration level in the beef industry has increased since 1972 and reached 7 1.6% for steers and heifers in 1990. The concentration in the pork industry has been steady except for the last few years. The elasticities of price transmission at the farm to retail level are indicative of...

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Bibliographic Details
Published in:Journal of food products marketing 1997-01, Vol.3 (4), p.23-36
Main Authors: Folwell, Raymond J., Worley, C. Thomas, McCracken, Vicki A.
Format: Article
Language:English
Online Access:Get full text
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Summary:The four fm concentration level in the beef industry has increased since 1972 and reached 7 1.6% for steers and heifers in 1990. The concentration in the pork industry has been steady except for the last few years. The elasticities of price transmission at the farm to retail level are indicative of competitive market forces for each species. The farm to retail marketing margins have been increasing for both species at an annual rate of 2.88 cents per pound for beef and 5.06 cents per pound for pork. These annual increases do not appear indicative of abusive use of market power by the firms that dominate these sectors when compared with the annual rates of increase for all food items.
ISSN:1045-4446
1540-4102
DOI:10.1300/J038v03n04_03