Meat Packer Vertical Integration and Contract Linkages in the Beef and Pork Industries: An Economic Perspective

Abstract

The livestock and meat industry's increasing use of production contract, marketing agreement, or ownership linkages between beef and pork producers and meat packers has provoked controversy and legislation to abolish many of these market linkages. In this re-port, we analyze the transition away from cash markets in the beef and pork industries. We explore its character and extent, underlying driving forces, problems and issues. The re-search team has completed an extensive review of prior research and data relevant to the policy issues currently being raised, conducted surveys of beef and pork packers and their leading customers, and summarized information useful to those involved in the policy analysis and debate.