Factors Affecting Quality Grade Discounts for Fed Cattle
AbstractPrices for Choice and Select grade fed cattle are derived from wholesale and retail beef markets. Choice-Select price discounts are a key component of fed cattle pricing, whether packers purchase fed cattle on a live weight, dressed weight, or grid. This study identifies supply, demand, and other factors affecting the Choice-Select discount series using an adaptive expectations model. It is found that the lagged value of the discount as well as the percentage grading Choice exert statistically significant influences on the discount, while neither the boxed beef price nor seasonality affect the discount.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama with number 119814.
Date of creation: 17 Jan 2012
Date of revision:
Choice-Select discount; marketing; prices; quality; Demand and Price Analysis; Marketing;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-02-08 (Agricultural Economics)
- NEP-ALL-2012-02-08 (All new papers)
- NEP-COM-2012-02-08 (Industrial Competition)
- NEP-MKT-2012-02-08 (Marketing)
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