Interregional competition and optimum market organization for Texas swine : a dissertation

Abstract

Texas has historically been a grain surplus and pork deficit state. Resource endowments in Texas appear to be conducive to a greatly increased hog-pork industry in competition with the Midwest output. However, even fully inventorying the natural and manmade resources is insufficient to explain the location of production within regions or nations. The impact of transfer costs and the function which the relative price plays in determining what, where and how much will be produced are overlooked when specialization alone is used to dictate production regions. Further, the highly inelastic demand and very low income elasticity for pork dictates that expansion in one region will come at the expense of, rather than in addition to, the production in other regions. The general objectives of this study were to identify and analyze current (1971) patterns of hog production, slaughter and consumption for the United States by major regions; also to predict the economic incentives for optimum production and slaughtering adjustments within and between regions. Special attention was given to the current and potential production and slaughter of hogs in Texas, and to evaluate market forces which favor stronger, more organized coordination in the market place..