Are Cattle Markets the Last Frontier? Vertical Coordination in Animal-Based Procurement Markets

Crespi, John M.; Saitone, Tina L.

doi:10.1146/annurev-resource-100517-022948

Cited by 12 publications

(9 citation statements)

References 48 publications

(49 reference statements)

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“…The second parameter is the economic size of a farm, according to the Farm Accountancy Data Network FADN typology, up to 25 thousand. euro of standard production SO 4 . According to the guidelines of the European Commission, farms with an economic size of up to EUR 8 000 are treated as very small (7 million in the EU), and up to EUR 25 000 as small (8.5 million) (European Commission, 2011; Eurostat, 2021).…”

Section: Data Setmentioning

confidence: 99%

Market integration as a determinant of agricultural prices and economic results of small-scale family farms

Stępień¹,

Polcyn²

2021

Economic Science for Rural Development

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Due to the specific features of the land factor, under market conditions, there is a tendency towards income deprivation of farms in relation to their surroundings. One way to improve this situation is to create a system of market institutions for farmer-recipient transactions. The issue of the position of the agricultural producer in the food supply chain is widely described in the literature on the subject. Nevertheless, practical analyses showing the real impact of the marketing position on economic results of farm are still rare. Therefore, the aim of this article is to assess the relationship between market integration and agricultural selling prices and, as a consequence, the level of global output and household income. The analysis is based on primary data from surveys of over 700 small-scale family farms in Poland. The choice of small-scale farms was deliberate, as these entities are the most discriminated against in the food supply chain. Explaining this process is key to improving the economic situation of small-scale farming and constitutes a premise for the objectives of agricultural policy and creating business strategy. The results of the research indicate that there is a positive correlation between the level of integration of an agricultural holding and sales prices for selected groups of agricultural products. This, in turn, leads to the improvement of economic condition of farms more closely integrated with the market.

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Section: Data Setmentioning

confidence: 99%

Market integration as a determinant of agricultural prices and economic results of small-scale family farms

Stępień¹,

Polcyn²

2021

Economic Science for Rural Development

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“…Over the last 50 years, the number of beef packing facilities has decreased from 145 plants processing over 22 million head of cattle per year to only 38 plants processing almost 27 million head of cattle per year, increasing the total US slaughter capacity accounted for by these plants from 14.8% to 66.8% (Ward, 2002). While cost management and economic efficiency drove this consolidation (Crespi & Saitone, 2018), some argue that this consolidation has left beef processing vulnerable to labor shocks of the sort seen with COVID (Wahdat & Lusk, 2022). 1 With these significant issues arising from the COVID pandemic and the high concentration in meatpacking, researchers and politicians are discussing how to combat the excess risk revealed by a major disease outbreak.…”

Section: Introductionmentioning

confidence: 99%

Consumer preferences for worker and supply chain risk mitigation in the beef supply chain in response to COVID‐19 pandemic

Sumrow,

Hudson,

Sarasty

et al. 2023

Agribusiness

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The COVID‐19 pandemic strained the beef supply chain through plant closures and labor shortages. The pandemic highlighted worker safety inadequacies as well as system vulnerabilities to supply chain disruptions. One result has been political and media scrutinization of beef processing concentration as a culprit for these disruptions. Breaking plants up into smaller, more geographically dispersed processing could help mitigate risk from large plant closures but would likely result in higher retail prices because of lost scale economies. Additionally, improving worker safety likely means slower processing even in larger plants, again likely raising retail prices. We use a choice‐based conjoint analysis to examine to whether and to what extent consumers would be willing to pay higher prices to support smaller plant sizes and improved worker safety, among other beef characteristics. Findings of the study suggest that consumers do not care, at least directly, about plant size but are willing to pay to reduce food miles for processed beef (indirectly implying more geographic dispersion). Consumers are also WTP to improve worker safety. Results also show positive willingness to pay for characteristics such as “grass‐fed” which is consistent with other studies. [EconLit Citations: Q13, Q18, C25, C83].

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“…At the same time, many scholars also have more research on the impact of the longitudinal integration of agricultural industrial chain farm products. Through the analysis and comparison of the development of the beef industry, John M. Crespi and TinaL believe that vertical integration has been proved to have important progress in improving the efficiency of the agricultural supply chain, but the impact varies with time and commodities, and the development of the industry should develop in the direction of greater integration [3]. Through the analysis of the vertical integration of production, processing, and sales in the American pork supply chain, James B.Kliebenstein and John D.Lawrence finds that vertical integration promotes the competitive position of the main body in the market and promotes the development of the regional industry Sporleder TL, WuSY [4][5].…”

Section: Introductionmentioning

confidence: 99%

Vertical Integration of Agricultural products supply chain and quality Safety of Agricultural products

Zhang

2021

E3S Web Conf.

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Today, food safety is a common concern in the world. As the main source of food, agricultural products’ safety is also worthy of attention. By establishing the vertical integration model of the agricultural product supply chain, the circulation links of agricultural products can be reduced, and the circulation efficiency and quality level of agricultural products can be improved. This paper assumes that under the condition of simple fresh agricultural products, there is only one wholesaler and one retailer in the agricultural product supply chain. Through the analysis of the economic model, it is concluded that the vertical integration of the agricultural product supply chain has a positive impact on the safety of agricultural products. With the improvement of the vertical integration of the supply agricultural products supply chain, the efforts of wholesalers and suppliers to ensure the safety of agricultural products have been improved, the circulation cost of agricultural products has been reduced, and the sales price of agricultural products has been reduced.

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Are Cattle Markets the Last Frontier? Vertical Coordination in Animal-Based Procurement Markets

Cited by 12 publications

References 48 publications

Market integration as a determinant of agricultural prices and economic results of small-scale family farms

Market integration as a determinant of agricultural prices and economic results of small-scale family farms

Consumer preferences for worker and supply chain risk mitigation in the beef supply chain in response to COVID‐19 pandemic

Vertical Integration of Agricultural products supply chain and quality Safety of Agricultural products

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