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Accuracy Of Grid Pricing: An Evaluation Using Wholesale Values Of Fed Cattle

Author

Listed:
  • Kovanda, Joseph T.
  • Schroeder, Ted C.
  • Wheeler, Tommy L.

Abstract

Grid pricing is one of the beef industry's answers to improving value coordination in fed cattle transactions. This paper constructs individual carcass-level grid and wholesale beef values. These values are used to evaluate the level of value communication that occurs between wholesale and grid values of beef. Furthermore, the values are used to estimate grid premiums/discounts that improve value communication. Results indicate that value coordination could be improved by modifying grid premiums/discounts.

Suggested Citation

  • Kovanda, Joseph T. & Schroeder, Ted C. & Wheeler, Tommy L., 2004. "Accuracy Of Grid Pricing: An Evaluation Using Wholesale Values Of Fed Cattle," 2004 Conference, April 19-20, 2004, St. Louis, Missouri 19023, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
  • Handle: RePEc:ags:ncrfou:19023
    DOI: 10.22004/ag.econ.19023
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    Cited by:

    1. Riley, John Michael & Schroeder, Ted C. & Wheeler, Tommy L., 2005. "Valuing Fed Cattle Using Slice Shear Force Measurements," 2005 Annual Meeting, July 6-8, 2005, San Francisco, California 36313, Western Agricultural Economics Association.
    2. Robertson-Carolan, Jessica & Parcell, Joseph L. & Patterson, David J. & Eakins, Roger & Franken, Jason R.V., 2011. "Valuing Beef Herd Dam Genetic Pedigree Management," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2011, pages 1-6, June.
    3. Ardian Harri & John Michael Riley & John D. Anderson & Keith H. Coble, 2009. "Managing economic risk in value‐based marketing of fed cattle," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 295-306, May.

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    Marketing;

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