Regional Shifts in Pork Production: Implications for Competition and Food Safety
- Resource Type
- research-article
- Authors
- Önal, Hayri; Unnevehr, Laurian; Bekric, Aleksandar
- Source
- American Journal of Agricultural Economics, 2000 Nov 01. 82(4), 968-978.
- Subject
- comparative advantage
food safety
pork industry
regional analysis
structural change
Hogs
Salmonella
Pork
Industrial agriculture
Supply
Shadow prices
Process engineering
Commercial production
Industrial production
Capital costs
- Language
- English
- ISSN
- 00029092
14678276
U.S. pork production and processing is consolidating in larger, more economically efficient units, and shifting from the Midwest into the Southeast. A regional model of farm supply and processing demand shows that smaller Midwest operations can survive only if processing capacity remains concentrated in that region. "Salmonella" incidence is higher in the Southeast and on larger farms. Restricting "salmonella" incidence in hogs delivered for processing to the minimum feasible level would increase total industry costs by 3%, due to increased production and delivery costs. It would also increase the comparative advantage of farms and processing firms in the Midwest.