Estimated Value of Increased Pricing Accuracy for Fed Cattle
Year: 2000
Type: article
Abstract: To improve vertical market coordination beef packers have introduced fed cattle grid pricing systems that offer premiums or discounts for varying carcass quality and yield grades. This study calculates the value of cattle quality information for producers considering live, dressed, and grid pricing alternatives. The value of fed cattle quality and yield grade information is at least $15/head. When fed cattle are sold on a live weight basis, high-quality cattle subsidize low-quality cattle by an average of $30/head. Price signals that could improve beef market coordination are ignored when fed cattle are marketed using traditional live or dressed weight methods.
Source: Review of Agricultural Economics
Authors: Ted C. Schroeder, Jennifer L. Graff
Institutions: Kansas State University, CME Group (United States)
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W2004202899