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Abstract
We empirically investigate the effects of beef packer concentration and size efficiencies, packer
procurement and pricing methods, and other market variables and quality characteristics on the prices
paid by packers for slaughter cattle. We find that packers pay less for fed cattle in more concentrated
regions. However, we find that concentration is only one of numerous market factors determining fed
cattle prices and less important than many. Quality variables controlled by sellers, like cattle type, are
more important in determining the price paid by packers than packer concentration, size economies,
procurement methods, or other variables outside seller control.