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Utilizing Expected Revenue In Selecting Optimal Marketing Alternatives For Fixed Resource Cow/Calf Operators In The Texas Panhandle

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  • Colette, W. Arden
  • Almas, Lal K.
  • Hittle, Chad A.
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    Abstract

    Beef cattle enterprises for the 91% of Texas producers with less than 100 cows represent secondary or supplemental enterprises. In most cases the operator is depending on surplus or discretional labor and the alternate use of the physical resources is limited due to topography or environmental factors. These characteristics transform the decision making process from a variable resource allocation problem to a fixed resource problem. Monthly average prices for 300-900 lb stocker steers, divided into 50 lb intervals, are analyzed for three market locations for the period 1992-1999. Consistent price roll back is observed as the price per cwt decreases as the weight increases. However, as the reduction in price is more than offset by the increase in value due to additional weight, the expected revenue per animal increases as weight increases.

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    File URL: http://purl.umn.edu/35187
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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama with number 35187.

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    Date of creation: 2003
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    Handle: RePEc:ags:saeatm:35187

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    Keywords: Livestock Production/Industries;

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    1. Mathews, Kenneth H., Jr. & Hahn, William F. & Nelson, Kenneth E. & Duewer, Lawrence A. & Gustafson, Ronald A., 1999. "U.S. Beef Industry: Cattle Cycles, Price Spreads, and Packer Concentration," Technical Bulletins 33583, United States Department of Agriculture, Economic Research Service.
    2. Ethridge, Don E. & Zhang, Ping & Dahl, Bill E. & Ervin, R. Terry & Rushemeza, Justin, 1990. "Cattle Ranching Production And Marketing Strategies Under Combined Price And Weather Risks," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(02), December.
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