Economic and Structural Relationships in U.S. Hog Production

64 Pages Posted: 13 Jul 2005

See all articles by William D. McBride

William D. McBride

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Nigel Key

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Date Written: February 2003

Abstract

Rapid change in the size and ownership structure of U.S. hog production has created new and varied challenges for the industry. This report describes an industry becoming increasingly concentrated among fewer and larger farms, and becoming more economically efficient. These changes have not come without problems. The increasing market control and power concentrated among packers and large hog operations, and the manure management problem posed by an increasing concentration of hog manure on fewer operations, are paramount concerns. Addressing these concerns through regulations would likely impose economic costs that could be passed on to consumers. In addition, the relative mobility of the hog industry means that regulations could result in significant changes in the location of hog production facilities, with ripple effects in local economies. Balancing environmental and economic interests will challenge policymakers dealing with the implications of structural change in U.S. hog production.

Keywords: Hog production, industry structure, structural change, production costs, contract production, manure management

Suggested Citation

McBride, William D. and Key, Nigel, Economic and Structural Relationships in U.S. Hog Production (February 2003). USDA-ERS Agricultural Economic Report No. 818, Available at SSRN: https://ssrn.com/abstract=758464 or http://dx.doi.org/10.2139/ssrn.758464

William D. McBride (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
(202) 694-5577 (Phone)

Nigel Key

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
(202) 694-5567 (Phone)

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