Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-26T10:31:23.987Z Has data issue: false hasContentIssue false
  • English
  • Français

The Impacts of Quality on Cash Fed Cattle Prices

Published online by Cambridge University Press:  28 April 2015

Rodney Jones ,
Ted Schroeder ,
James Mintert  and
Frank Brazle
Rodney Jones
Affiliation:
Department of Agricultural Economics
Ted Schroeder
Affiliation:
Department of Agricultural Economics
James Mintert
Affiliation:
Department of Agricultural Economics
Frank Brazle
Affiliation:
Department of Animal Sciences and Industry at Kansas State University
Get access Rights & Permissions [Opens in a new window]

Abstract

Quality factors affecting fed cattle prices were examined during a six-month period in southwestern Kansas. Transaction prices were significantly affected by the percentage of cattle expected to grade choice times the choice-to-select carcass price spread, finish uniformity, average weight, dressing percentage, breed, number of cattle purchased by a single packer on a given day, the packer, the feedyard, the day-of-the-week the cattle were sold, and the number of bids received. Asking prices were significantly affected by many of the same factors. Asking and transaction prices reflected approximately 25 percent of the packer value differentials for expected carcass quality grades.

Keywords

fed cattle pricesvalue-based marketing
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 24 , Issue 2 , December 1992 , pp. 149 - 162
Copyright
Copyright © Southern Agricultural Economics Association 1992

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bailey, D., and Peterson, M.C.. Price and Basis Implication of Video Cattle Auctions. Blacksburg, VA: Research Institute on Livestock Pricing, Research Bulletin 3-89, November 1989.Google Scholar
Belsley, D.A., Kuh, E., and Welsch, R.E.. Regression Diagnostics. New York: John Wiley and Sons, 1980.CrossRefGoogle Scholar
Botkin, C.J., Bainbridge, B.B., Kenyon, D.E., and Purcell, W.D.. “Explaining Virginia Live Cattle Basis: An Empirical Examination of the Elements Affecting Cash Prices in Local Virginia Markets.” Paper presented at the annual meetings of the AAEA at Baton Rouge, LA, August 2, 1989.Google Scholar
Buccola, S.T. “An Approach to the Analysis of Feeder Cattle Price Differentials.” Am. J. Agr. Econ., 62(1980):574–580.CrossRefGoogle Scholar
Faminow, M.D., and Gum, R.L.. “Feeder Cattle Price Differentials in Arizona Auction Markets.” West. J. Agr. Econ., 11(1986): 156–163.Google Scholar
Jones, R., Schroeder, T., Mintert, J., and Brazle, F.. “Determinants of Cash Fed Cattle Prices: Does Quality Matter?” Dept. Agr. Econ., Staff Paper No. 91-16, Kansas State University, January 1991.Google Scholar
Knop, F. “Value-Based Task Force Sets Strategies.” Drovers Journal, February 8, 1990, p. 1.Google Scholar
Ladd, G.W., and Martin, M.B.. “Prices and Demands for Input Characteristics.” Am. J. Agr. Econ., 58(1976): 21–30.CrossRefGoogle Scholar
Schroeder, T., Mintert, J., Brazle, F., and Grunewald, O.. “Factors Affecting Feeder Cattle Price Differentials.” West. J. Agr. Econ, 13(1988):71–81.Google Scholar
Sullivan, G.M., and Linton, D.A.. “Economic Evaluation of an Alternative Marketing System for Feeder Cattle in Alabama.” So. J. Agr. Econ., 13(1981):85–89.Google Scholar
Vermedahl, L. “Review of Session 1: Structural Change: A Research Base.” In Proceedings of Structural Change in Livestock: Causes, Implications, Alternatives. Purcell, W.D. and Altizer, T.J., eds. Blacksburg, VA: Research Institute on Livestock Pricing, 1990, pp. 24–29.Google Scholar
Ward, C.E. “Fed Cattle Price Discovery Impacts from Structural and Behavioral Changes in Meatpacking.” unpublished manuscript journal contribution No. 5890, Dept. Agr. Econ., Oklahoma State University, July 1990.Google Scholar
Ward, C.E. “Inter-Firm Differences in Fed Cattle Prices in the Southern Plains.” Am. J. Agr. Econ. 74(1992):480–85.CrossRefGoogle Scholar
Ward, C.E.Meatpacking Competition and Pricing. Blacksburg, VA: Research Institute on Livestock Pricing, 1988.Google Scholar
Ward, C.E. “Relationship Between Fed Cattle Market Shares and Prices Paid by Beefpackers in Localized Markets.” West. J. Agr. Econ., 7(1982):79–86.Google Scholar
Ward, C.E. “Short-Period Pricing Models for Fed Cattle and Impacts of Wholesale Carcass Beef and Live Cattle Futures Market Prices.” So. J. Agr. Econ., 13(1981):125–132.Google Scholar
Wohlgenant, M.K., and Mullen, J.D.. “Modeling the Farm-Retail Price Spread for Beef.” West. J. Agr. Econ., 12(1987): 119–125.Google Scholar