Briefing No . 62 January 2004 Distribution of Cost Efficiencies in the Beef Marketing Channel

John M. Marsh (406) 994-5621 [email protected] Cost efficiencies are an important factor in the red meat industry. These efficiencies refer to technological changes, resource configurations, and management strategies that result in firms reducing per unit costs of output (including risk). Cost efficiencies in livestock and meat marketing are critical for the economic survival of firms that compete in domestic and global markets. The adoption of computer information technology has particularly improved the cost efficiencies of firms in the marketing chain including auction barns, input suppliers (i.e., feed, energy, and transportation), livestock finishers, meat packers and processors, and wholesalers and retailers of meat products.