Archive – December 2023

How Meatpacker Procurement Policies Impact Producers in the Beef Supply Chain


In late 2016, Tyson Foods, Inc. announced that it would no longer purchase Holstein cattle at its Joslin, IL harvest facility. This alteration to Tyson’s procurement policy provides a unique opportunity to estimate how producers in the beef supply chain were affected. Results from this study, orginally published in the American Journal of Agricultural Economics, indicate that Tyson’s decision resulted in a 5.5% reduction in live Holstein prices and a 3.5% reduction in dressed prices. Price impacts were more significant for Holstein feeder cattlel; prices for feeder cattle were reduced by 22% immediately after the decision and eventually stabilized 4.8% …