Technological Change and Economies of Scale in U.S. Poultry Processing |
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Authors: | Michael Ollinger James M MacDonald Milton Madison |
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Institution: | Michael Ollinger and James MacDonald are economists at the Economic Research Service of the U.S. Department of Agriculture and Milton Madison is an economist at the Farm Services Administration of the U.S. Department of Agriculture. |
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Abstract: | 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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Keywords: | chicken slaughter consolidation cost analyses scale economies structural change turkey slaughter |
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