The full citations for the articles and studies footnoted in the discussion points can be found in the ICRP Bibliography . The real test is whether an increase in livestock production from corporate operations does more or less for a local area than an equivalent increase from independent producers. Local Spending Patterns for Farm Business in Southwest Minnesota. Economic Impact of a Swine Complex in Southside Virginia. The Effects of Vertical Integration Vertical integration is involvement in more than one stage of production by a single company - for example, a meat packer that also engages in livestock production.
Vertical integration can produce unfair competition.
A meat packer that can supply its plants with slaughter livestock from its own production facilities can reduce prices to independent livestock producers. If packers control 50 percent of production capacity, they will pay 26 percent less for hogs purchased from independent producers. That's remarkably close to the University of Nebraska computer estimate. North Carolina has aggressively pursued corporate hog farming with the notion that more corporate production would bring packers to North Carolina, increasing prices for hogs and opening up new opportunities for family farmers. In fact, North Carolina has experienced dramatic growth in pork production.