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Technological Change and Economies of Scale in U.S. Poultry Processing
Michael Ollinger, James M. MacDonald and Milton Madison
American Journal of Agricultural Economics
Vol. 87, No. 1 (Feb., 2005), pp. 116-129
Stable URL: http://www.jstor.org/stable/3697996
Page Count: 14
You can always find the topics here!Topics: Economies of scale, Economic costs, Capital costs, Slaughter, Meats, Production costs, Farm economics, Cattle industry, Product mixes, Sample mean
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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.
American Journal of Agricultural Economics © 2005 Agricultural & Applied Economics Association