Research Progress Report 319 October, 1967
An Analysis and Projection of the Structural Characteristics Of the Indiana Livestock Marketing System
J. B. Johnson and R. E. Schneidau
Agricultural Economics

Purpose of the Study
Changes in number, location, size, size distribution and ownership of Indiana livestock marketing agencies have apparently been generated by a complicated mixture of technological and economic factors.^ Because livestock farmers, cattle feeders, meat packers, and marketing agencies are integrally related, changes in one may induce changes in the others. Such changes may cause economic waste or result in economic gains in movement of livestock from farmer to consumer. Price and price establishment and return to factors of production may be altered.

This study was undertaken to provide knowledge of selected structural changes including changes in number, location, size, size distribution, and ownership of marketing agencies operating in Indiana. Because of the nature of this study and limitations of empirical data, the largest area for which measurement of structural characteristics is made is the geographical boundaries of the state of Indiana.

Objectives of the Study
The primary objectives of this study were to (1) identify the number, location, size, size distribution, and ownership of stockyards, packer-direct marketing agencies, terminals and livestock auctions for 1958 and 1962 and (2) project for given time periods the total number, size, and size distribution of stockyards, and(3)evaluate the implications of changing numbers, size, size distribution, and ownership of the various types of livestock marketing agencies upon the competitive relationships among Indiana livestock marketing agencies.

Marketing of slaughter livestock includes all the channels through which animals and products pass from the producer to the ultimate consumer of meat and by-products at retail. It is apparent that the job of livestock marketing is not complete when the producer disposes of his stock to the first buyer. This study, however, is primarily concerned with the various Indiana livestock marketing agencies which purchase or facilitate the purchase of livestock from the producer. These

1 The terms "marketing agencies" and "marketing facilities are used interchangeably throughout this report to designate the physical places where title transfer of livestock occurs

PURDUE UNIVERSITY • Agricultural Experiment Station • Lafayette, Indiana