Work

Market Power in Poultry Production Contracting? Evidence from a Farm Survey

Year: 2012

Type: article

Abstract: The exercise of market power by broiler processing firms (integrators) is plausible because local markets for growers are concentrated and because growers face hold-up risks arising from substantial investments in specific assets set against limited integrator purchase commitments. This article explores the links between local integrator concentration and grower compensation under production contracts using data from the 2006 broiler version of the USDA's Agricultural Resource Management Survey. Results of this study, which account for characteristics of the operation and specific features of the production contract, suggest that greater integrator concentration results in a small but economically meaningful reduction in grower compensation.

Source: Journal of Agricultural and Applied Economics

DOI: 10.1017/s1074070800024056

Authors: James M. MacDonald, Nigel Key

Institutions: Economic Research Service, United States Department of Agriculture

Language: English

Topic: Agricultural economics and policies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Zero hunger, Decent work and economic growth

Open Access status: green

OpenAlex ID: W2146927634