Which Broiler Part is the Best Part?

Posted: 7 Sep 2004

See all articles by H.L. Goodwin

H.L. Goodwin

University of Arkansas - Department of Agricultural Economics & Agribusiness

Andrew M. McKenzie

University of Arkansas - Department of Agricultural Economics & Agribusiness

Harjanto Djunaidi

Middle Tennessee State University - School of Agribusiness and Agriscience

Abstract

Predominance of production and marketing contracts in the broiler industry suggests a traditional analysis of price relationships might no longer be appropriate. In this study, markets for broiler cuts are defined as spatial. Results of VAR analysis of monthly USDA data from 1987-2000 verify the price relationship between white meat and whole broiler prices. Price shocks in the boneless skinless breast market have a greater impact than dark meat shocks, suggesting this market is most important in price transmission. These results will assist industry participants to form more effective marketing and pricing strategies, thus adding efficiency to the market.

Keywords: Broiler markets, market structure, marketing contracts, price transmission

JEL Classification: C4, D4, L1, Q0

Suggested Citation

Goodwin, H.L. and McKenzie, Andrew M. and Djunaidi, Harjanto, Which Broiler Part is the Best Part?. Available at SSRN: https://ssrn.com/abstract=586621

H.L. Goodwin

University of Arkansas - Department of Agricultural Economics & Agribusiness ( email )

Fayetteville, AR 72701
United States

Andrew M. McKenzie

University of Arkansas - Department of Agricultural Economics & Agribusiness ( email )

Fayetteville, AR 72701
United States

Harjanto Djunaidi (Contact Author)

Middle Tennessee State University - School of Agribusiness and Agriscience ( email )

Murfreesboro, TN 37132
United States

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