publication . Preprint . 2008

Local Monopsony Power in the Market for Broilers - Evidence from a Farm Survey

Key, Nigel D.; MacDonald, James M.;
Open Access
  • Published: 01 Jan 2008
Abstract
The exercise of monopsony power by broiler processing firms is plausible because production occurs within localized complexes, which limits the number of integrators with whom growers can contract. In addition, growers face distinct hold-up risks as broiler production requires a substantial investment in specific assets and most production contracts do not involve long-term purchasing commitments by integrators. This paper provides an initial exploration of the links between the local concentration of broiler integrators and grower compensation under production contracts using data from the 2006 broiler version of USDA’s Agricultural Resource Management Survey. ...
Subjects
free text keywords: poultry, broilers, market power, monopsony, production contracts, Livestock Production/Industries, Marketing,
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