Technological change and economies of scale in U.S. poultry processing

This article uses a unique data set provided by the Census Bureau and a translog cost function to empirically examine technological change in the U.S. poultry industry. Results reveal substantial scale economies that show no evidence of diminishing with plant size and that are much greater than thos...

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Bibliographic Details
Published inAmerican journal of agricultural economics Vol. 87; no. 1; pp. 116 - 129
Main Authors Ollinger, M, MacDonald, J.M, Madison, M
Format Journal Article
LanguageEnglish
Published 01.02.2005
Subjects
chickens
econometric models
economic forecasting
economic trends
economies of scale
food industry
innovation adoption
longitudinal studies
meat packing plants
meat processing
poultry industry
processing technology
production costs
slaughter
slaughterhouses
technological change
turkeys
United States
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Summary:This article uses a unique data set provided by the Census Bureau and a translog cost function to empirically examine technological change in the U.S. poultry industry. Results reveal substantial scale economies that show no evidence of diminishing with plant size and that are much greater than those realized in cattle and hog slaughter. Findings suggest that consolidation is likely to continue, particularly if demand growth diminishes, and that controlling for plant product mix is critical to accurate cost estimates.
Bibliography:http://hdl.handle.net/10113/6809
ISSN:0002-9092
1467-8276
DOI:10.1111/j.0002-9092.2005.00706.x