An Empirical Investigation of Live Hog Demand

An inverse live hog demand model was estimated to analyze claims that the live hog own quantity demand flexibility's magnitude has increased in recent years. A second objective of this research was to estimate the impact changes in processing capacity utilization rates have on live hog prices. Results indicate that in recent years live hog prices have become more responsive to changes in hog slaughter, slaughter weight, and cold storage stocks. Additionally, changes in processing capacity utilization rates, at times, also have a relatively large impact on live hog prices. Finally, when the large live hog price decline that occurred during the fall of 1998 is examined, model results indicate that the sharp increase in processor's capacity utilization rates, an increase in average dressed weight, and the increase in hog slaughter all had a large negative effect on live hog prices.


Issue Date:
2002
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/26042
Total Pages:
33
Series Statement:
Agricultural Economics Working Paper No. 2002-10




 Record created 2017-04-01, last modified 2017-08-24

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)