Hueth, Brent; Ibarburu, Maro; Kliebenstein, James

Review of Agricultural Economics Vol. 29 no. 4 (Winter 2007): 720-733.

We study business organization and coordination of specialty-market hog production using a comparative analysis of two Iowa firms marketing niche pork. We analyze each firm's management of five key organizational challenges: planning and logistics, quality assurance, process verification and management of "credence attributes," business structure, and profit sharing. Although each firm is engaged in essentially the same activity, there are substantial differences across the two firms in the way production and marketing are coordinated. These differences are partly explained by the relative size and age of each firm, but also by the formal organizational separation between marketing and production activities in one of the firms.

JEL Classification: Q10

Keywords: specialty hogs