Hostname: page-component-848d4c4894-sjtt6 Total loading time: 0 Render date: 2024-06-21T05:59:08.906Z Has data issue: false hasContentIssue false
  • English
  • Français

An Empirical Investigation of Live-Hog Demand

Published online by Cambridge University Press:  28 April 2015

Joe Parcell ,
James Mintert  and
Ron Plain
Joe Parcell
Affiliation:
Department of Agricultural Economics, University of Missouri, Columbia, MO
James Mintert
Affiliation:
Department of Agricultural Economics, Kansas State University, Manhattan, KS
Ron Plain
Affiliation:
Department of Agricultural Economics, University of Missouri, Columbia, MO
Get access Rights & Permissions [Opens in a new window]

Abstract

An inverse live-hog demand model was estimated to analyze whether there has been a recent increase in the magnitude of live-hog, own-quantity demand flexibility. Estimating the impact of processing capacity-utilization rate changes on live-hog prices was a second objective of this research. Results indicate that live hog prices have become more responsive to changes in hog slaughter, slaughter weight, cold storage stocks, and changes in the processing capacity-utilization rate. Finally, model results indicate that the sharp increase in processing capacity-utilization rates, the increase in average dressed weight, and the increase in hog slaughter all had a negative effect on the live-hog prices.

Keywords

Capacity utilizationlive hog demandstructural changeQ11Q12Q13D40
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 3 , December 2004 , pp. 773 - 787
Copyright
Copyright © Southern Agricultural Economics Association 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, D.W., Murray, B.C., Teague, J.L., and Lindrooth, R.C.. “Exit from the Meatpacking Industry: A Microdata Analysis.” American Journal of Agricultural Economics 80(February 1998):96–106.CrossRefGoogle Scholar
Barkley, A.P., and Schroeder, T.C.. Long-run Impacts of Captive Supplies. Technical Bulletin GIPSA-RR 96-3. Washington, D.C.: U.S. Department of Agriculture, Grain Inspection, Packers and Stockyards Administration, February 1996.Google Scholar
Brown, S.Analysis of the Effect of Hog Processing Capacity on Live-hog Prices. Technical Bulletin FAPRI-UMC 02-9. Columbia, MO: University of Missouri, Food and Agricultural Policy Research Institute, 1999.Google Scholar
Bureau of Labor Statistics. Consumer Price Index (Not Seasonally Adjusted). Internet site: http://www.bls.gov (Accessed January 2000).Google Scholar
Bureau of Labor Statistics. U.S. City Average Electricity Per KWH (Not Seasonally Adjusted). Internet site: http://www.bls.gov (Accessed January 2000).Google Scholar
Bureau of Labor Statistics. Meat Packer Mean Hourly Wage (Not Seasonally Adjusted). Internet site: http://www.bls.gov (Accessed January 2000).Google Scholar
Dorfman, J.H., and Foster, K.A.. “Estimating Productivity Changes with Flexible Coefficients.” Western Journal of Agricultural Economics 16(1991):280–90.Google Scholar
Federal Reserve Economic Data. Annual U.S. Population. Federal Reserve Bank of St. Louis. Internet site: http://www.stls.frb.org (Accessed January 2000).Google Scholar
Federal Reserve Economic Data. U.S. Total Disposable Income. Federal Reserve Bank of St. Louis. Internet site: http://www.stls.frb.org (Accessed January 2000).Google Scholar
Grimes, G. Personal communication. Department of Agricultural Economics, University of Missouri, February 2000.Google Scholar
Grimes, G., and Meyer, S.. Hog Marketing Contract Study. University of Missouri and National Pork Producers. Internet site: http://agebb.missouri.edu/mkt/vertstud.htm (Accessed January 2000).Google Scholar
Hayenga, M., and Hacklander, D.. “Monthly Supply-Demand Relationships for Fed Cattle and Hogs.” American Journal of Agricultural Economics 52(1970):535–44.CrossRefGoogle Scholar
Lawrence, J., Hayenga, M., and Grimes, G.. The U.S. Pork Industry Structure: A 1997 Snapshot. 1998 Swine Research Report, AS-640. Ames, IA: Iowa State University Extension, January 1999, pp. 179–81.Google Scholar
Livestock Marketing Information Center. “Quarterly Commercial Hog Slaughter, Pork Production, Per Capita Pork Disappearance and Hog Prices, Table 7.100.” Lakewood, CO: Livestock Marketing Information Center, July 14, 1999.Google Scholar
Luby, P. “The Hog-Pork Industry Woes of 1998.” Discussion paper, Madison, WI: Department of Agricultural and Applied Economics, University of Wisconsin-Madison, April 1999.Google Scholar
Lutkepohl, H. “The Source of the U.S. Money Demand Instability.” Empirical Economics 18(1993):729–43.CrossRefGoogle Scholar
McGuirk, A., Driscoll, P., Alwang, J., and Huang, H.. “System Misspecification Testing and Structural Change in the Demand for Meats.” Journal of Agricultural and Resource Economics 20(1995):1–21.Google Scholar
Moschini, G., and Meilke, K.D.. “Modeling the Pattern of Structural Change in U.S. Meat Demand.” American Journal of Agricultural Economics 71(1989):253–61.CrossRefGoogle Scholar
National Pork Producers Council. Pork Production Fluctuation Effecting Price, Slaughter Capacity: News … from the Nation's Pork Industry. Internet site: http://www.nppc.org/NEWS (Accessed March 5, 1999).Google Scholar
National Pork Producers Council. Pork producer economic recovery plan presented: News … from the Nation's Pork Industry. Internet site: http://www.nppc.org/NEWS (Accessed July 21, 1999).Google Scholar
National Pork Producers Council. “U.S. Pork Industry Economic Recovery Action Plan.” Discussion paper, Des Moines, IA: National Pork Producers Council, July 1999.Google Scholar
National Pork Producers Council. Estimated Daily Slaughter Capacity:1999-2000 Pork Facts. Internet site: http://www.nppc.org/NEWS (Accessed February 2000).Google Scholar
Parcell, J.L. “An Empirical Analysis of the Demand for Wholesale Pork Primais: Seasonality and Structural Change.” Journal of Agricultural and Resource Economics 28,2(August 2003):335–48.Google Scholar
Plain, R., and Grimes, G.. “Spring and Summer Far-rowings Pegged 7% Lower.” National Hog Farmer April 1999. Internet site: www.keepmedia.com/pubs/NationalHogFarmer/1999/04/30/167349 (Accessed February 2002).Google Scholar
Poray, M., Foster, K.A., and Dorfman, J.H.. Measuring an Almost Ideal Demand System with Generalized Flexible Least Squares. American Agricultural Economics Meetings, 2000. Internet site: http://agecon.lib.umn.edu/(Accessed May 2002).Google Scholar
Schroeder, T.C, and Mintert, J.. “Analysis of Marketing Margins.” Discussion paper. Des Moines, IA: National Pork Producers Council, December 1996. SHAZAM User's Reference Manual. Version 9.0. New York: McGraw-Hill, 2001.Google Scholar
Spivey, S.E., Salin, V., and Anderson, D.P.. “Analysis of the Effect of Packing Capacity on Hog Prices.” Journal of Agriculture and Applied Economics 32(2000):398.Google Scholar
Tesfatsion, L., and Veitch, J.. “U.S. Money Demand Instability” Journal of Economic Dynamics and Control 14(1990):151–73.CrossRefGoogle Scholar
Tomek, W. “Limits on Price Analysis.” American Journal of Agricultural Economics 67(1985):905–1015.CrossRefGoogle Scholar
United States Department of Agriculture—Economic Research Service. Livestock, Dairy, and Poultry Update. Various issues, 1980-1999.Google Scholar
United States Department of Agriculture—Economic Research Service. Cold Storage Reports. Various issues, 1980-1999.Google Scholar
United States Department of Agriculture—Economic Research Service. Livestock Slaughter. Various issues, 1980-1999.Google Scholar
United States Department of Agriculture—Agricultural Marketing Service. Regional Direct Hog Reports. Internet site: http://www.ams.usda.gov/lsmnpubs/psdr.htm (Accessed various dates).Google Scholar
United States Department of Agriculture—Grain Inspection, Packers, and Stockyards Association. Packers and Stockyards Statistical Report. Technical Bulletin GIPS A SR-99-1. Washington, D.C: U.S. Department of Agriculture, 1999.Google Scholar
Ward, CE. “Meatpacking Plant Capacity and Utilization: Implications for Competition and Pricing.” Agribusiness 6(1990):65–73.3.0.CO;2-V>CrossRefGoogle Scholar
Wohlgenant, M.K. “Demand for Farm Output in a Complete System of Demand Functions.” American Journal of Agricultural Economics 71(1989):241–52.CrossRefGoogle Scholar