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Cooperative Coordination In The Hog-Pork System: Examples From Europe And The U.S

Author

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  • Schrader, Lee F.
  • Boehlje, Michael
Abstract
The traditional organization of the hog-pork subsector, characterized by independent hog production and open market coordination, is being challenged as never before. Rapid growth of large, industrialized production firms with close ties to processors in non-traditional areas such as North Carolina and Colorado indicate the need for change in traditional systems in the Midwest if these producers and communities are to continue to participate in the hog- pork subsector. Given that few, if any, traditional producers have the capital to attain minimum cost size for a complete production system that fully uses new more efficient technology, some means to coordinate production and marketing of a number of producers will be required. Cooperative coordination of the production and marketing of independent producers is one alternative to achieve and capture for producers the additional returns from a coordinated system. This discussion describes and evaluates alternative models of cooperative coordination in the hog-pork chain. These models were obtained by interviewing executives from selected cooperatives and other leaders who are involved in the hog-pork industry in Europe and the U.S.

Suggested Citation

  • Schrader, Lee F. & Boehlje, Michael, 1996. "Cooperative Coordination In The Hog-Pork System: Examples From Europe And The U.S," Staff Papers 28611, Purdue University, Department of Agricultural Economics.
    • Handle: RePEc:ags:puaesp:28611
    DOI: 10.22004/ag.econ.28611
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    Cited by:

    1. Solène Larue & Jens Abildtrup & Bertrand Schmitt, 2011. "Positive and Negative Agglomeration Externalities: Arbitration in the Pig Sector," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 167-183.
    2. Larue, Solene & Abildtrup, Jens & Schmitt, Bertrand, 2008. "Modelling the Spatial Structure of Pig Production in Denmark," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44281, European Association of Agricultural Economists.
    3. Poray, Michael C. & Gray, Allan W. & Boehlje, Michael, 2002. "Evaluation of Alternative Coordination Systems Between Producers and Packers in the Pork Value Chain," Staff Papers 200386, Purdue University, Department of Agricultural Economics.

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    Keywords

    Agribusiness;

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