Regional Shifts in Pork Production: Implications for Competition and Food Safety
University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics
Laurian J. Unnevehr
U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)
affiliation not provided to SSRN
American Journal of Agricultural Economics, Vol. 82, No. 4, November 2000
U.S. pork production and processing is consolidating in larger, more economically efficient units, and shifting from the Midwest into the Southeast. A regional model of farm supply and processing demand shows that smaller Midwest operations can survive only if processing capacity remains concentrated in that region. Salmonella incidence is higher in the Southeast and on larger farms. Restricting salmonella incidence in hogs delivered for processing to the minimum feasible level would increase total industry costs by 3%, due to increased production and delivery costs. It would also increase the comparative advantage of farms and processing firms in the Midwest.
Date posted: October 1, 2001