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Examining Packer Choice Of Slaughter Cattle Procurment And Pricing Methods

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  • Capps, Oral, Jr.
  • Love, H. Alan
  • Williams, Gary W.
  • Adams, Wendi L.
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    Abstract

    Using daily fed cattle purchase transaction records collected by the Packers and Stockyards Programs over the period April 1992 to April 1993, we identify characteristics associated with the choices of fed cattle procurement and pricing methods. The methodology involves the use of a multinomial logit model. Regional concentration; processing capacity; number of head per lot; average weight per head; cattle type; yield grade, quarterly grade, seasonality, and distance from packing plants play a significant role in determining the methods of procurement and pricing chosen by packers. The method chosen by packers to procure fed cattle also affects the choice of a given pricing method.

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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

    Volume (Year): 28 (1999)
    Issue (Month): 1 (April)
    Pages:

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    Handle: RePEc:ags:arerjl:31491

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    Web page: http://www.narea.org/
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    Keywords: Livestock Production/Industries;

    References

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    1. Azzam, Azzeddine M. & Schroeter, John R., 1991. "Implications Of Increased Regional Concentration And Oligopsonistic Coordination In The Beef Packing Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December.
    2. Schroeter, John R., 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," Staff General Research Papers 11114, Iowa State University, Department of Economics.
    3. Ward, Clement E., 1981. "Short-Period Pricing Models For Fed Cattle And Impacts Of Wholesale Carcass Beef And Live Cattle Futures Market Prices," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(01), July.
    4. Menkhaus, Dale J. & St. Clair, James S. & Ahmaddaud, A. Zahedi, 1981. "The Effects Of Industry Structure On Price: A Case In The Beef Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(02), December.
    5. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    6. Theil, Henri, 1969. "A Multinomial Extension of the Linear Logit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(3), pages 251-59, October.
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    Cited by:
    1. Pedro A. Alviola & Oral Capps, 2010. "Household demand analysis of organic and conventional fluid milk in the United States based on the 2004 Nielsen Homescan panel," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 369-388.

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