Explaining Plant Exit in the U.S. Meat and Poultry Industries
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Recent U.S. pathogen reduction and HACCP food safety regulations, which increased the costs of producing meat and poultry products, may have affected the rate of plant exit during the 1996 to early 2000 time period over which the regulations were implemented. We estimate and compare probit models for U.S. federally inspected meat slaughter (920 plants), poultry slaughter (280 plants), and meat and poultry processing-only (4,300 plants) plants to determine which factors most contributed to the probability of plant exit. The factors we consider include plant-level, company-level, and regional-level characteristics and regional supply conditions. Although plant size affected the probability of exit for slaughter plants, it did not affect exit for processing-only plants. Other variables, such as measures of market structure and competition, have different effects for each of the industries.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Artikel in diesem Heft
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- Cooperative Investment and the Value of Contracting with Transaction Costs
- Tough Love: Optimal Enforcement of Output Quotas in the Presence of Cheating
- Pricing-to-Market versus Residual Demand Elasticity Analysis of Imperfect Competition in Food Exports: Evidence from Germany
- Food Supply Management and Tariffication: A Game Theoretic Approach
- Social Welfare and the Market Power-Efficiency Tradeoff in U.S. Food Processing: A Note
- The Gains and Losses from Agricultural Concentration: A Critical Survey of the Literature
- Explaining Plant Exit in the U.S. Meat and Poultry Industries
- Contract Design: A Note on Cash Settled Futures
- Explaining Price Dispersion for Homogeneous Grocery Products
- An Essay on Cooperative Bargaining in U.S. Agricultural Markets
- Costly (Dis)Agreement: Optimal Intervention, Income Redistribution, and Transfer Efficiency of Output Quotas in the Presence of Cheating
- Inventory Constraints in a Dynamic Model of Imperfect Competition: An Application to Beef Packing
- Some Unintended Consequences of TRQ Liberalization
- Information Pooling and Collusion: Implications for The Livestock Mandatory Reporting Act
- Concentration and Innovation in the U.S. Food Industries
- Vertical Product Differentiation in Theory and Practice
- Agricultural Marketing Institutions: A Response to Quality Disputes
Artikel in diesem Heft
- Article
- Cooperative Investment and the Value of Contracting with Transaction Costs
- Tough Love: Optimal Enforcement of Output Quotas in the Presence of Cheating
- Pricing-to-Market versus Residual Demand Elasticity Analysis of Imperfect Competition in Food Exports: Evidence from Germany
- Food Supply Management and Tariffication: A Game Theoretic Approach
- Social Welfare and the Market Power-Efficiency Tradeoff in U.S. Food Processing: A Note
- The Gains and Losses from Agricultural Concentration: A Critical Survey of the Literature
- Explaining Plant Exit in the U.S. Meat and Poultry Industries
- Contract Design: A Note on Cash Settled Futures
- Explaining Price Dispersion for Homogeneous Grocery Products
- An Essay on Cooperative Bargaining in U.S. Agricultural Markets
- Costly (Dis)Agreement: Optimal Intervention, Income Redistribution, and Transfer Efficiency of Output Quotas in the Presence of Cheating
- Inventory Constraints in a Dynamic Model of Imperfect Competition: An Application to Beef Packing
- Some Unintended Consequences of TRQ Liberalization
- Information Pooling and Collusion: Implications for The Livestock Mandatory Reporting Act
- Concentration and Innovation in the U.S. Food Industries
- Vertical Product Differentiation in Theory and Practice
- Agricultural Marketing Institutions: A Response to Quality Disputes
