Structural Change In The Alberta Hog Marketing Industry And Its Effect On Retail Pork Prices

Author : Steven Samuel Leavitt
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (142 download)

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Download or read book Market Performance of the Alberta Pork Producers' Marketing Board written by Steven Samuel Leavitt and published by . This book was released on 1981 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study evaluated the market performance of the Alberta Pork Producers' Marketing Board which became the single selling agency for hogs in Alberta in 1969. Con cepts of pricing and operational efficiency were applied in the evaluation and analysis, with comparisons made of alternative market areas (Winnipeg, Toronto and the average of the U.S. 7 markets) during various time periods. Market information was assessed because improvements tend to increase operational and pricing efficiency. The timeliness, quantity, and quality of hog market information have increased since the Board's inception. Cost reductions in the hog marketing system were used to assess operational efficiency since the Board's incep tion. Cost savings were introduced through the Board's establishment of the Producers' Hog Indemnity Fund and assem bly yard system. The Board's sales department and data pro cessing department have also shown other areas of increased operational efficiency through their hog allocation system, "check float mechanism", and hog settlement procedure. Pricing efficiency was evaluated through graphical illustrations, statistical measurements, correlation co efficients and econometric models. Results from these techniques were compared between different market areas during various time periods, which represent policy changes of the Board. Results of the models which tested the re lationship between price spreads between various markets and transportation costs, and analysis of the relationship between alternative price variables indicated improvements in pricing efficiency had occurred since the Board was established. However, evidence from the model which tested the relationship between price variables and supply variables between various markets and time periods suggested that after the Board's formation improvements in pricing effi ciency were lacking. The major conclusions from this study were that the Board's selling procedures improved market information and operational efficiency. However, a firm conclusion concern ing pricing efficiency could not be made because of the mixed evidence on improved pricing efficiency since the Board's inception. It was recommended that other agricultural marketing sectors become involved in co-operative selling through a single selling agency.