In Denmark, the concentration of hog production is highest in the western part of the country. However, there may also be even larger differences in the number of hogs produced locally. In this study, we analyze the determinants of the location of hog production in Denmark and, in particular, the interaction between the location of hog production and slaughterhouses. It is the assumption that the location of slaughterhouses is influenced by the location of the primary producers, implying that this variable is endogenous, whereas the location of primary producers is independent of the location of slaughterhouses. This is due to the fact that transportation costs of pigs are paid by the cooperatives owning the slaughterhouses. This assumption is tested applying a spatial econometric model. The model is estimated for 1989, 1999 and 2004. In the latter period, it is the hypothesis that the demand for export of living hogs and piglets to Germany has influenced the location of hog production because the farmers themselves pay the transport costs for pig export. Furthermore, a number of other potential determinants of hog production are tested, e.g., the impact of negative environmental externalities of pig production, differences in environmental regulation and opportunity costs of labor.