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Churning out the links: vertical integration in the beef and pork industries

机译：缩小环节：牛肉和猪肉行业的纵向整合

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摘要

For the livestock and meat industry the 1990s were a period of marked vertical integration. By the end of the decade, the use of production contracts, marketing agreements, and other Ownership linkages between beef and pork producers and meat packers had provoked such controversy that Congress began to consider legislation to abolish many types of market linkages. We analyze the transition from cash markets in the beef and pork industries, the underlying forces driving the changes, and related issues. Pork and beef packers have committed up to 40 percent of their output to customers under long-term arrangements. Because of this, at least in part, there are an increasing number of branded, case-ready consumer beef and pork products, along with merchandising programs and greater food safety concerns in both industries. More knowledgeable and demanding customers have raised the bar for raw product quality and consistency of supply. Traditional spot markets in the pork and beef food chains have failed to offer incentives that provide sufficient high quality and consistency of supply to serve these new and more demanding product-market segments. Market failures, therefore, have driven changes in the relationships between packers and livestock producers -- changes which include vertical integration.
机译：对于畜牧业和肉类工业，1990年代是一个垂直整合的时期。到本世纪末，牛肉，猪肉生产商和肉类包装商之间使用生产合同，销售协议和其他所有权联系引起了极大争议，国会开始考虑废除多种类型的市场联系的立法。我们分析了牛肉和猪肉行业从现金市场的过渡，推动变化的潜在因素以及相关问题。在长期安排下，猪肉和牛肉包装商已将其总产量的40％承诺给客户。因此，至少在一定程度上，这两个行业中都有越来越多的品牌，即用型消费牛肉和猪肉产品，以及商品计划和对食品安全的更大关注。知识渊博且要求苛刻的客户提高了原始产品质量和供应一致性的标准。猪肉和牛肉食品链中的传统现货市场未能提供激励措施，无法提供足够的高质量和稳定的供应来满足这些新的和要求更高的产品市场领域的需求。因此，市场失灵促使包装商和牲畜生产者之间的关系发生了变化，其中包括纵向整合。

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