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An Empirical Investigation of Live-Hog Demand

Published online by Cambridge University Press:  28 April 2015

Joe Parcell ,
James Mintert  and
Ron Plain
Joe Parcell
Affiliation:
Department of Agricultural Economics, University of Missouri, Columbia, MO
James Mintert
Affiliation:
Department of Agricultural Economics, Kansas State University, Manhattan, KS
Ron Plain
Affiliation:
Department of Agricultural Economics, University of Missouri, Columbia, MO
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Abstract

An inverse live-hog demand model was estimated to analyze whether there has been a recent increase in the magnitude of live-hog, own-quantity demand flexibility. Estimating the impact of processing capacity-utilization rate changes on live-hog prices was a second objective of this research. Results indicate that live hog prices have become more responsive to changes in hog slaughter, slaughter weight, cold storage stocks, and changes in the processing capacity-utilization rate. Finally, model results indicate that the sharp increase in processing capacity-utilization rates, the increase in average dressed weight, and the increase in hog slaughter all had a negative effect on the live-hog prices.

Keywords

Capacity utilizationlive hog demandstructural changeQ11Q12Q13D40
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 3 , December 2004 , pp. 773 - 787
Copyright
Copyright © Southern Agricultural Economics Association 2004

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