STRUCTURAL CHANGE IN U.S. CHICKEN AND TURKEY SLAUGHTER

Michael Öllinger · James M. MacDonald · Milton E. Madison

21 citations0/0 files storedRePEc: Research Papers in Economics

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Agricultural economics and policies Livestock Farming and Management Economics of Agriculture and Food Markets

Abstract

Cost function analyses using data from the U.S. Bureau of the Census reveal substantial scale economies in chicken and turkey slaughter. These economies show no evidence of diminishing as plant size increases, are much greater than those realized in cattle and hog slaughter, and have resulted in a huge increase in plant size over the 1972-92 period. The findings also suggest that consolidation in the chicken and turkey slaughter industry is likely to continue, particularly if the growth in the demand for poultry diminishes.

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2001The New Food Economy: Consumers, Farms, Pharms, and Science

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