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Issues of Demand Specification and Industry Structure in Turkeys and Broiler Chickens

Published online by Cambridge University Press:  28 April 2015

Laura M. Cheney ,
A. Blake Brown ,
Takashi Yamano  and
Michael Masterovsky
Laura M. Cheney
Affiliation:
Department of Agricultural Economics atMichigan State University, Hugh C. Kiger Associate Professor in the Department of Agricultural and Resource Economics at North Carolina State University, visiting assistant professor and former graduate student, Department of Agricultural Economics at Michigan State University
A. Blake Brown
Affiliation:
Department of Agricultural Economics atMichigan State University, Hugh C. Kiger Associate Professor in the Department of Agricultural and Resource Economics at North Carolina State University, visiting assistant professor and former graduate student, Department of Agricultural Economics at Michigan State University
Takashi Yamano
Affiliation:
Department of Agricultural Economics atMichigan State University, Hugh C. Kiger Associate Professor in the Department of Agricultural and Resource Economics at North Carolina State University, visiting assistant professor and former graduate student, Department of Agricultural Economics at Michigan State University
Michael Masterovsky
Affiliation:
Department of Agricultural Economics atMichigan State University, Hugh C. Kiger Associate Professor in the Department of Agricultural and Resource Economics at North Carolina State University, visiting assistant professor and former graduate student, Department of Agricultural Economics at Michigan State University
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Abstract

Factors unique to the turkey industry suggest that conclusions concerning market structure and demand specification drawn from aggregate poultry data cannot necessarily be extrapolated to the turkey industry. The Wu-Hausman endogeneity test is used to examine demand specifications and industry structure specifically for turkey meat. In contrast to general poultry, quantity—not price—is found to be predetermined in demand models that use annual turkey data. Quarterly demand analysis suggests this result stems from biological cycles that limit a producer's ability to react to price change and the use of a weighted average for determining price and quantity.

Keywords

demand analysisendogeneitymarket structurepoultry industryturkeys
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 33 , Issue 1 , April 2001 , pp. 25 - 34
Copyright
Copyright © Southern Agricultural Economics Association 2001

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