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Which Broiler Part is the Best Part?

Published online by Cambridge University Press:  28 April 2015

H.L. Goodwin Jr. ,
Andrew M. McKenzie  and
Harjanto Djunaidi
H.L. Goodwin Jr.
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
Andrew M. McKenzie
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
Harjanto Djunaidi
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
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Abstract

Predominance of production and marketing contracts in the broiler industry suggests a traditional analysis of price relationships might no longer be appropriate. In this study, markets for broiler cuts are defined as spatial. Results of a vector autoregressive regression analysis of monthly USDA data from 1987 to 2000 verify the price relationship between white meat and whole broiler prices. Price shocks in the boneless skinless breast market have a greater effect than dark meat shocks, suggesting this market is most important in price transmission. These results will assist industry participants to form more effective marketing and pricing strategies, thus adding efficiency to the market.

Keywords

broiler marketsmarket structuremarketing contractsprice transmissionC4D4LIQ0
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 3 , December 2003 , pp. 483 - 495
Copyright
Copyright © Southern Agricultural Economics Association 2003

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