Risk Shifting via Partial Vertical Integration: Beef Packers’ Acquisition of Slaughter Cattle
11 Pages Posted: 4 Dec 2022
Date Written: November 13, 2022
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: Suggested Citation