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Annual Review of Resource Economics

Volume 10, 2018

Are Cattle Markets the Last Frontier? Vertical Coordination in Animal-Based Procurement Markets

Abstract

Vertical integration and contracting have been documented as important developments in enhancing the efficiency of supply chains in agriculture. Despite the efficiency gains, movement toward greater integration remains controversial. Meanwhile, the diffusion of these alternative procurement mechanisms has been heterogeneous over time and across commodities. In this review we compare and contrast the livestock and poultry industries in the United States to provide insights into the future of integration and coordination throughout the beef cattle supply chain. While similarities exist across livestock and poultry industries, there are significant differences that placed the beef industry on a different trajectory, with a variety of structural and biological factors that have limited the industry's progression toward greater integration.

Keyword(s): beef, cattle, contracts, JEL L11, JEL Q13, livestock, vertical coordination, vertical integration
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2018-10-05
2025-04-30
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/content/journals/10.1146/annurev-resource-100517-022948
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Are Cattle Markets the Last Frontier? Vertical Coordination in Animal-Based Procurement Markets
Annual Review of Resource Economics 10, 207 (2018); https://doi.org/10.1146/annurev-resource-100517-022948
/content/journals/10.1146/annurev-resource-100517-022948
/content/journals/10.1146/annurev-resource-100517-022948
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