Journal
AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Volume 87, Issue 1, Pages 116-129Publisher
WILEY
DOI: 10.1111/j.0002-9092.2005.00706.x
Keywords
chicken slaughter; consolidation; cost analyses; scale economies; structural change; turkey slaughter
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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.
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