Cost structures of pork slaughter and processing firms: behavioral and performance implications
A survey of selected large pork slaughter and processing firms was conducted. Single- and double-shift plant effects, varying capacity utilization effects, and multiple plant effects on fixed and variable costs are estimated. Two dollar per head reductions in operating costs were found for two-shift...
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| Veröffentlicht in: | Applied economic perspectives and policy 1998-10, Vol.20 (2), p.574-583 |
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| creator | Hayenga, Marvin L. |
| description | A survey of selected large pork slaughter and processing firms was conducted. Single- and double-shift plant effects, varying capacity utilization effects, and multiple plant effects on fixed and variable costs are estimated. Two dollar per head reductions in operating costs were found for two-shift versus single-shift plants. Fixed plant and equipment costs declined $3/head for double- versus single-shift plants. Capacity utilization rates can greatly affect variable costs per head and pricing behavior in the market for hogs, since approximately 60%–70% of variable costs in the medium run is essentially fixed within the first four days of the week. Increased market concentration seems likely in response to the economies of size in plants and in multiplant operations. Stronger long-term vertical linkages between packer and hog producer (or vertical integration) will continue to increase in importance. Overall efficiency is likely to be enhanced, but market power issues will become more frequently raised. |
| doi_str_mv | 10.2307/1350009 |
| format | Article |
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Single- and double-shift plant effects, varying capacity utilization effects, and multiple plant effects on fixed and variable costs are estimated. Two dollar per head reductions in operating costs were found for two-shift versus single-shift plants. Fixed plant and equipment costs declined $3/head for double- versus single-shift plants. Capacity utilization rates can greatly affect variable costs per head and pricing behavior in the market for hogs, since approximately 60%–70% of variable costs in the medium run is essentially fixed within the first four days of the week. Increased market concentration seems likely in response to the economies of size in plants and in multiplant operations. Stronger long-term vertical linkages between packer and hog producer (or vertical integration) will continue to increase in importance. 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Single- and double-shift plant effects, varying capacity utilization effects, and multiple plant effects on fixed and variable costs are estimated. Two dollar per head reductions in operating costs were found for two-shift versus single-shift plants. Fixed plant and equipment costs declined $3/head for double- versus single-shift plants. Capacity utilization rates can greatly affect variable costs per head and pricing behavior in the market for hogs, since approximately 60%–70% of variable costs in the medium run is essentially fixed within the first four days of the week. Increased market concentration seems likely in response to the economies of size in plants and in multiplant operations. Stronger long-term vertical linkages between packer and hog producer (or vertical integration) will continue to increase in importance. Overall efficiency is likely to be enhanced, but market power issues will become more frequently raised.</description><subject>ABATTAGE D'ANIMAUX</subject><subject>Administrative expenses</subject><subject>ANALISIS DE COSTOS</subject><subject>ANALYSE DES COUTS</subject><subject>CARGAS VARIABLES</subject><subject>CARNE DE CERDO</subject><subject>CHARGE FIXE</subject><subject>CHARGE VARIABLE</subject><subject>Commentary</subject><subject>COMPETENCIA ECONOMICA</subject><subject>CONCURRENCE ECONOMIQUE</subject><subject>COST ANALYSIS</subject><subject>Cost estimates</subject><subject>Cost structure</subject><subject>COSTOS DE EXPLOTACION</subject><subject>COSTOS FIJOS</subject><subject>COUT OPERATIONNEL</subject><subject>ECONOMIC COMPETITION</subject><subject>Economic costs</subject><subject>EMPRESAS</subject><subject>ENTERPRISES</subject><subject>ENTREPRISE</subject><subject>EQUIPO</subject><subject>FIXED COSTS</subject><subject>Hogs</subject><subject>INDUSTRIA DE LA CARNE</subject><subject>INDUSTRIE DE LA VIANDE</subject><subject>L220</subject><subject>Market concentration</subject><subject>MARKET POWER</subject><subject>MARKET PRICES</subject><subject>MATERIEL</subject><subject>MEAT AND LIVESTOCK INDUSTRY</subject><subject>MEAT INDUSTRY</subject><subject>OPERATING COSTS</subject><subject>PORK</subject><subject>PRECIOS DE MERCADO</subject><subject>PRIX DE MARCHE</subject><subject>Process engineering</subject><subject>Q130</subject><subject>SACRIFICIO</subject><subject>SLAUGHTERING</subject><subject>VARIABLE COSTS</subject><subject>VIANDE PORCINE</subject><issn>1058-7195</issn><issn>2040-5790</issn><issn>1467-9353</issn><issn>2040-5804</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1998</creationdate><recordtype>article</recordtype><recordid>eNp90EFLwzAUB_AiCs4pfgGF4MVTNVmapvEmczph4ECn4iW8pcmWrVtK0qr79k46tpOe3oP_7_0PL4pOCb7qUMyvCWUYY7EXtUiS8lhQRvfXO2ZZzIlgh9FRCDOMCcuytBXJrgsVCpWvVVV7HZAzqHR-jkIB9WRaaY9gmaPSO6VDsMsJMtYvwg0a6yl8WuehaID2xvkFLJVGdlEWVkFl3TIcRwcGiqBPNrMdje57L91-PHh6eOzeDmJFSSLinOFOoriBjJoMMqJYOuYCmDLUsBynLMG0o4DocSISLAzloNKEGQ08z7nmtB1dNr3KuxC8NrL0dgF-JQmWv3-Rm7-sJW7kly306i8mb3vD4e7kojlxdflP71mDZqFyfse2cdzENlT6exuDn8uUU85k__1Dvg4HQ8rfiLxb-_PGG3ASJt4GOXomQoh1GSMZ_QHyTpBX</recordid><startdate>199810</startdate><enddate>199810</enddate><creator>Hayenga, Marvin L.</creator><general>Oxford University Press</general><general>American Agricultural Economics Association</general><scope>FBQ</scope><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope></search><sort><creationdate>199810</creationdate><title>Cost structures of pork slaughter and processing firms: behavioral and performance implications</title><author>Hayenga, Marvin L.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c3149-d5024c7fa83f8a81c56b79a5cf3f5d0654032ca1eb49409f37ac645fea7dd7e73</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1998</creationdate><topic>ABATTAGE D'ANIMAUX</topic><topic>Administrative expenses</topic><topic>ANALISIS DE COSTOS</topic><topic>ANALYSE DES COUTS</topic><topic>CARGAS VARIABLES</topic><topic>CARNE DE CERDO</topic><topic>CHARGE FIXE</topic><topic>CHARGE VARIABLE</topic><topic>Commentary</topic><topic>COMPETENCIA ECONOMICA</topic><topic>CONCURRENCE ECONOMIQUE</topic><topic>COST ANALYSIS</topic><topic>Cost estimates</topic><topic>Cost structure</topic><topic>COSTOS DE EXPLOTACION</topic><topic>COSTOS FIJOS</topic><topic>COUT OPERATIONNEL</topic><topic>ECONOMIC COMPETITION</topic><topic>Economic costs</topic><topic>EMPRESAS</topic><topic>ENTERPRISES</topic><topic>ENTREPRISE</topic><topic>EQUIPO</topic><topic>FIXED COSTS</topic><topic>Hogs</topic><topic>INDUSTRIA DE LA CARNE</topic><topic>INDUSTRIE DE LA VIANDE</topic><topic>L220</topic><topic>Market concentration</topic><topic>MARKET POWER</topic><topic>MARKET PRICES</topic><topic>MATERIEL</topic><topic>MEAT AND LIVESTOCK INDUSTRY</topic><topic>MEAT INDUSTRY</topic><topic>OPERATING COSTS</topic><topic>PORK</topic><topic>PRECIOS DE MERCADO</topic><topic>PRIX DE MARCHE</topic><topic>Process engineering</topic><topic>Q130</topic><topic>SACRIFICIO</topic><topic>SLAUGHTERING</topic><topic>VARIABLE COSTS</topic><topic>VIANDE PORCINE</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Hayenga, Marvin L.</creatorcontrib><collection>AGRIS</collection><collection>Istex</collection><collection>CrossRef</collection><jtitle>Applied economic perspectives and policy</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Hayenga, Marvin L.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Cost structures of pork slaughter and processing firms: behavioral and performance implications</atitle><jtitle>Applied economic perspectives and policy</jtitle><stitle>Review of Agricultural Economics</stitle><addtitle>Review of Agricultural Economics</addtitle><date>1998-10</date><risdate>1998</risdate><volume>20</volume><issue>2</issue><spage>574</spage><epage>583</epage><pages>574-583</pages><issn>1058-7195</issn><issn>2040-5790</issn><eissn>1467-9353</eissn><eissn>2040-5804</eissn><abstract>A survey of selected large pork slaughter and processing firms was conducted. Single- and double-shift plant effects, varying capacity utilization effects, and multiple plant effects on fixed and variable costs are estimated. Two dollar per head reductions in operating costs were found for two-shift versus single-shift plants. Fixed plant and equipment costs declined $3/head for double- versus single-shift plants. Capacity utilization rates can greatly affect variable costs per head and pricing behavior in the market for hogs, since approximately 60%–70% of variable costs in the medium run is essentially fixed within the first four days of the week. Increased market concentration seems likely in response to the economies of size in plants and in multiplant operations. Stronger long-term vertical linkages between packer and hog producer (or vertical integration) will continue to increase in importance. Overall efficiency is likely to be enhanced, but market power issues will become more frequently raised.</abstract><pub>Oxford University Press</pub><doi>10.2307/1350009</doi><tpages>10</tpages><oa>free_for_read</oa></addata></record> |
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| identifier | ISSN: 1058-7195 |
| ispartof | Applied economic perspectives and policy, 1998-10, Vol.20 (2), p.574-583 |
| issn | 1058-7195 2040-5790 1467-9353 2040-5804 |
| language | eng |
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| source | Wiley Online Library Journals Frontfile Complete |
| subjects | ABATTAGE D'ANIMAUX Administrative expenses ANALISIS DE COSTOS ANALYSE DES COUTS CARGAS VARIABLES CARNE DE CERDO CHARGE FIXE CHARGE VARIABLE Commentary COMPETENCIA ECONOMICA CONCURRENCE ECONOMIQUE COST ANALYSIS Cost estimates Cost structure COSTOS DE EXPLOTACION COSTOS FIJOS COUT OPERATIONNEL ECONOMIC COMPETITION Economic costs EMPRESAS ENTERPRISES ENTREPRISE EQUIPO FIXED COSTS Hogs INDUSTRIA DE LA CARNE INDUSTRIE DE LA VIANDE L220 Market concentration MARKET POWER MARKET PRICES MATERIEL MEAT AND LIVESTOCK INDUSTRY MEAT INDUSTRY OPERATING COSTS PORK PRECIOS DE MERCADO PRIX DE MARCHE Process engineering Q130 SACRIFICIO SLAUGHTERING VARIABLE COSTS VIANDE PORCINE |
| title | Cost structures of pork slaughter and processing firms: behavioral and performance implications |
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