Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries
By: Marsh, John M.; Brester, Gary W.
Marsh, John M.; Brester, Gary W., Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries, Journal of Agricultural and Resource Economics, Volume 29, Issue 1, April 2004, Pages 45-64
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.