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The Affect of Animal Gender on Fed Cattle Producer Marketing Behavior

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Listed:
  • Fausti, Scott W.
  • Qasmi, Bashir A.
  • Diersen, Matthew A.
  • Li, Jing
  • Lange, Brent

Abstract

Weekly grid market share by volume for slaughter steers is compared to slaughter heifers. Summary statistics indicate average grid market share for steers (42%) is 27% higher than slaughter heifers (33%). The literature indicates that pregnancy and increased dark cutter incidence associated with heifers relative to steers creates additional financial risk when heifers are sold on a grid. Econometric analysis suggests grid market share is less sensitive to change in market conditions for heifers relative to steers. The empirical evidence is consistent with the supposition that marketing heifers is riskier than marketing steers on a grid. Thus sellers need stronger economic incentives to market heifers on a grid relative to steers.

Suggested Citation

  • Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A. & Li, Jing & Lange, Brent, 2011. "The Affect of Animal Gender on Fed Cattle Producer Marketing Behavior," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98541, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea11:98541
    DOI: 10.22004/ag.econ.98541
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    References listed on IDEAS

    as
    1. Fausti, Scott W. & Diersen, Matthew A. & Qasmi, Bashir A. & Li, Jing, 2010. "Value-Based Marketing: A Dsicussion of Issues and Trends in the Slaughter Cattle Market," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 27(1-2), pages 1-22.
    2. Stephen R. Koontz & John D. Lawrence, 2010. "Impacts of alternative marketing agreement cattle procurement on packer costs, gross margins, and profits: evidence from plant-level profit and loss data," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 1-24.
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    Cited by:

    1. Fausti, Scott W. & Lange, Brent, 2011. "Uncertainty and Producer Fed Cattle Marketing Decisions: Theory and Evidence," Economics Staff Papers 102692, South Dakota State University, Department of Economics.

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    Livestock Production/Industries;

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