Extent of Alternative Marketing Arrangements for Fed Cattle and Hogs

Clement E Ward ( 2009 )

Summary

So-called captive supplies in livestock procurement by packers have been a major concern and divisive issue in the beef and pork industries for more than 20 years. Recently, the phrase, “alternative marketing arrangements,” has tended to replace the phrase “captive supplies.” This fact sheet uses seven years of data to addresses questions including: To what extent do packers purchase fed cattle and hogs in the cash market versus alternative marketing arrangements? Is the use of the cash market for fed cattle and hog procurement increasing or decreasing?

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