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Abstract

We have witnessed profound changes in the pork sector over the last several years. These involve integration and concentration that raise issues of competitiveness in both input and product markets as well as issues of who bears risk and who reaps rewards. We see clear evidence of increased concentration, by several measures, to the point where public vigilance is warranted. Two major policy options are anti-trust action and increasing the market power of hog producers through institutional arrangements new to the hog industry. Better information in specific areas of concern is needed before informed public policy can be made with respect to either policy option, and the option of increasing producer market power will require active public support.

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