Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries

Marsh, John M.; Brester, Gary W.
April 2004
Journal of Agricultural & Resource Economics;2004, Vol. 29 Issue 1, p45
Academic Journal
An econometric model is used to estimate real wholesale-retail marketing margins for beef and pork. From 1970 to 1998, these margins increased by 27% and 149%, while farm-wholesale margins declined. Wholesale-retail (WR) marketing margin increases have caused livestock producers to focus on the retail sector as a contributor to declining real livestock prices. Increases in WR margins may be related to increased demand and costs of value-added food products/services as well as increased market concentration in the retail grocery sector. Results indicate that retail factors, and to a lesser extent meat processing factors, significantly increased WR margins and decreased livestock prices.


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