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Analysis of Marketing Margins in the U.S. Lamb Industry

Published online by Cambridge University Press:  15 September 2016

Oral Capps Jr. ,
Patrick J. Byrne  and
Gary W. Williams
Oral Capps Jr.
Affiliation:
Department of Agricultural Economics, Texas A&M University
Patrick J. Byrne
Affiliation:
Food and Resource Economics Department, University of Florida
Gary W. Williams
Affiliation:
Department of Agricultural Economics, Texas A&M University
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Abstract

Factors affecting marketing margins were identified and assessed using a relative price spread technique. Margins were disaggregated into slaughter-to-wholesale and wholesale-to-retail for a more complete understanding. Marketing costs, concentration, demand, and price were used to explain variations within these margins. Results showed that packer concentration had a significant effect on margins. Forces of supply and demand (as represented by production and market price) and changes in marketing costs also explained the variation in margins. A higher degree of price transmission from slaughter-to-wholesale level was observed in comparison to the wholesale-to-retail level.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 24 , Issue 2 , October 1995 , pp. 232 - 240
Copyright
Copyright © 1995 Northeastern Agricultural and Resource Economics Association 

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