Risk Shifting via Partial Vertical Integration: Beef Packers’ Acquisition of Slaughter Cattle

11 Pages Posted: 4 Dec 2022

See all articles by C. Robert Taylor

C. Robert Taylor

Auburn University - Department of Agricultural Economics and Rural Sociology

Date Written: November 13, 2022

Abstract

Partial vertical integration of many food and agricultural industries, especially beef packers’ acquisition of slaughter cattle, increasingly raises competition and fairness issues for the non-integrated residual market. While market foreclosure may be a central antitrust concern with full integration, partial integration does not completely foreclose markets, but may shift risks to the residual non-integrated market. This short report presents empirical analysis of risk shifting in the partially integrated market for slaughter cattle.

Keywords: partial vertical integration, captive supply, cattle markets, risk shifting

JEL Classification: Q02, Q11, Q18

Suggested Citation

Taylor, Charles, Risk Shifting via Partial Vertical Integration: Beef Packers’ Acquisition of Slaughter Cattle (November 13, 2022). Available at SSRN: https://ssrn.com/abstract=4276805 or http://dx.doi.org/10.2139/ssrn.4276805

Charles Taylor (Contact Author)

Auburn University - Department of Agricultural Economics and Rural Sociology

Comer Hall
Auburn, AL 36849
United States

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