Journal Article

Technological Change and Economies of Scale in U.S. Poultry Processing

Michael Ollinger, James M. MacDonald and Milton Madison

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 87, issue 1, pages 116-129
Published in print February 2005 | ISSN: 0002-9092
Published online February 2005 | e-ISSN: 1467-8276 | DOI: https://dx.doi.org/10.1111/j.0002-9092.2005.00706.x
Technological Change and Economies of Scale in U.S. Poultry Processing

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  • Technological Change; Research and Development
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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.

Keywords: chicken slaughter; consolidation; cost analyses; scale economies; structural change; turkey slaughter; D240; L250; L660; O330; Q110

Journal Article.  8651 words.  Illustrated.

Subjects: Technological Change; Research and Development ; Firm Objectives, Organization, and Behaviour ; Production and Organizations ; Agricultural Economics ; Manufacturing

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