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

14 Pages Posted: 21 Apr 2020

See all articles by Michael Ollinger

Michael Ollinger

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

James M. MacDonald

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Milton Madison

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Date Written: February 2005

Abstract

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

Suggested Citation

Ollinger, Michael and MacDonald, James M. and Madison, Milton, Technological Change and Economies of Scale in U.S. Poultry Processing (February 2005). American Journal of Agricultural Economics, Vol. 87, Issue 1, pp. 116-129, 2005, Available at SSRN: https://ssrn.com/abstract=3580270 or http://dx.doi.org/10.1111/j.0002-9092.2005.00706.x

Michael Ollinger (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States

James M. MacDonald

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
(202) 694-5610 (Phone)

Milton Madison

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

1301 New York Ave. NW
Washington, DC 20250
United States

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