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Derived Demand for Cattle Feeding Inputs

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Author Info

  • Mathews, Kenneth H., Jr.
  • Arnade, Carlos A.
  • Jones, Keithly G.

Abstract

Derived demand relationships among four weight categories of feeder cattle entering Texas feedlots and their feed consumed are examined using a generalized McFadden dual cost function. Results demonstrate systematic differences in demand relationships among different weight categories. Positive cross-price elasticities among the three heaviest weight categories are consistent with input substitution among weight categories and consistent with objective functions associated with optimal placement weight. Anomalies in the form of negative cross-price elasticities between weight categories provide evidence for an alternative objective function associated with longer term feeding of light-weight feeder cattle. Results also demonstrate seasonality differences across weight categories.

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Bibliographic Info

Article provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.

Volume (Year): 26 (2008)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:jloagb:90552

Contact details of provider:
Postal: 301 Conner Hall, University of Georgia, Athens, GA 30602-7509
Web page: http://www.agecon.uga.edu/~jab/
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Related research

Keywords: cattle feeding; derived demand; elasticity; feeder cattle; generalized McFadden cost function; Agribusiness; Demand and Price Analysis; Livestock Production/Industries;

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References

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  1. Marsh, John M., 1999. "Economic Factors Determining Changes In Dressed Weights Of Live Cattle And Hogs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(02), December.
  2. Kastens, Terry L. & Schroeder, Ted C., 1994. "Cattle Feeder Behavior And Feeder Cattle Placements," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
  3. Friesen, J. & Capalbo, S. & Denny, M., 1992. "Dynamic factor demand equations in U.S. and Canadian agriculture," Agricultural Economics, Blackwell, vol. 6(3), pages 251-266, February.
  4. Schroeder, Ted C. & Albright, Martin L. & Langemeier, Michael R. & Mintert, James R., 1993. "Determinants of Cattle Feeding Profit and Cost of Gain Variability," Staff Papers 118161, Kansas State University, Department of Agricultural Economics.
  5. Arnade, Carlos & Pick, Daniel, 1998. "Seasonality and unit roots: the demand for fruits," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 18(1), January.
  6. Mark, Darrell R. & Schroeder, Ted C. & Jones, Rodney D., 2000. "Identifying Economic Risk In Cattle Feeding," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(3).
  7. Kevin C. Dhuyvetter & Ted C. Schroeder, 2000. "Price-Weight Relationships for Feeder Cattle," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(3), pages 299-310, November.
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Cited by:
  1. Anderson, David P. & Daley, Erin & Outlaw, Joe L., 2007. "The Interaction between ethanol and cattle feeding: economics and issues," Biofuels, Food and Feed Tradeoffs, Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri 48770, Farm Foundation.

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