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An analysis of feeder cattle price differentials

Author

Listed:
  • Charles D. Lambert

    (Economics, National Cattlemen's Association, Kansas State University)

  • Mark S. McNulty

    (Department of Statistics, Kansas State University)

  • Orlen C. Grunewald

    (Department of Agricultural Economics. Part of the work on this manuscript was conducted while O. Grunewald was a Visiting Associate Professor, Department of Agricultural Economics, University of Arizona, Kansas State University)

  • Larry R. Corah

    (Department of Animal Science and Industry, Kansas State University)

Abstract

A static premium and discount analysis was used to determine whether certain management or marketing practices affect the price of feeder cattle at auction. Data included animal characteristics (sex, weight, muscle, frame, horns, breed, condition, fill, health) and market characteristics (price, lot size, market location, auction sale order). The analysis shows that marketing price can be enhanced by selling heavy muscled, crossbred cattle with either medium or large frame in large (truck-load) size lots. Cattle should carry average fill, an average or slightly fleshy amount of condition, and be dehorned.

Suggested Citation

  • Charles D. Lambert & Mark S. McNulty & Orlen C. Grunewald & Larry R. Corah, 1989. "An analysis of feeder cattle price differentials," Agribusiness, John Wiley & Sons, Ltd., vol. 5(1), pages 9-23.
    • Handle: RePEc:wly:agribz:v:5:y:1989:i:1:p:9-23
    DOI: 10.1002/1520-6297(198901)5:1<9::AID-AGR2720050103>3.0.CO;2-H
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    References listed on IDEAS

    as
    1. Faminow, Merle D. & Gum, Russell L., 1986. "Feeder Cattle Price Differentials In Arizona Auction Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-8, December.
    2. Sullivan, Gregory M. & Linton, Daniel A., 1981. "Economic Evaluation of an Alternative Marketing System For Feeder Cattle in Alabama," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(2), pages 85-89, December.
    3. Steven T. Buccola, 1980. "An Approach to the Analysis of Feeder Cattle Price Differentials," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 574-580.
    4. John M. Marsh, 1985. "Monthly Price Premiums and Discounts between Steer Calves and Yearlings," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 307-314.
    5. Sullivan, Gregory M. & Linton, Daniel A., 1981. "Economic Evaluation Of An Alternative Marketing System For Feeder Cattle In Alabama," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(2), pages 1-5, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Schulz, Lee L. & Dhuyvetter, Kevin C. & Doran, Beth, 2014. "Factors Affecting Preconditioned Calf Price Differentials: How much do Market and Sale Conditions Matter?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170570, Agricultural and Applied Economics Association.
    2. Shane, Richard & Janssen, Larry, 1989. "Pricing Variability of Feeder Cattle, Slaughter Cows and Slaughter Bulls at South Dakota Livestock Auctions," WAEA/ WFEA Conference Archive (1929-1995) 244935, Western Agricultural Economics Association.
    3. Yunhan Li & J. Scott Shonkwiler, 2021. "Assessing the Role of Ordering in Sequential English Auctions – Evidence from the Online Western Video Market Auction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 90-105, January.
    4. repec:ags:jrapmc:122317 is not listed on IDEAS
    5. Frasier, Marshall & Pfeiffer, George & Azzam, Azzeddine, 1991. "Optimal Replacement and Management Strategies for Beef Cows," WAEA/ WFEA Conference Archive (1929-1995) 321434, Western Agricultural Economics Association.
    6. Kamuanga, Mulumba & d'Iteren, G & Tano, K & Jabbar, Mohammad A. & Swallow, B M & PoKou, K, 2001. "Farmers’ preferences of cattle breeds, their market values and prospects for improvement in West Africa – a summary review," Research Reports 182892, International Livestock Research Institute.
    7. Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2014. "Seller-Offered Forward Contracts: An Additional Benefit to Cattle Producers from Satellite Video Auctions," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162323, Southern Agricultural Economics Association.
    8. Tano, Kouadio & Kamuanga, Mulumba & Faminow, Merle D. & Swallow, Brent, 2003. "Using conjoint analysis to estimate farmer's preferences for cattle traits in West Africa," Ecological Economics, Elsevier, vol. 45(3), pages 393-407, July.
    9. Zimmerman, Lance C. & Schroeder, Ted C. & Dhuyvetter, Kevin C. & Olson, K.C. & Stokka, Gerald L. & Seeger, Jon T. & Grotelueschen, Dale M., 2012. "The Effect of Value-Added Management on Calf Prices at Superior Livestock Auction Video Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-16, April.

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