IDEAS home Printed from https://ideas.repec.org/p/ags/waeafa/35739.html
   My bibliography  Save this paper

Market Signals In Value Based Pricing Premiums And Discounts

Author

Listed:
  • Feuz, Dillon M.

Abstract

Present beef marketing practices may be impeding the transmission of economic signals from consumers to producers. Three grid pricing systems are evaluated over six marketing dates. Each grid sends the anticipated pricing signals in that marbling and leanness are rewarded. Magnitudes of price signals vary over time and across grids.

Suggested Citation

  • Feuz, Dillon M., 1999. "Market Signals In Value Based Pricing Premiums And Discounts," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35739, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeafa:35739
    DOI: 10.22004/ag.econ.35739
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/35739/files/sp99fe02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.35739?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ted C. Schroeder & Clement E. Ward & James R. Mintert & Derrell S. Peel, 1998. "Value-Based Pricing of Fed Cattle: Challenges and Research Agenda," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 125-134.
    2. Fausti, Scott W. & Feuz, Dillon M. & Wagner, John J., 1998. "Value Based Marketing For Fed Cattle: A Discussion Of The Issues," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(1), pages 1-18.
    3. Feuz, Dillon M. & Fausti, Scott W. & Wagner, John J., 1995. "Risk And Market Participant Behavior In The U.S. Slaughter-Cattle Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-10, July.
    4. Dillon M. Feuz & Scott W. Fausti & John J. Wagner, 1993. "Analysis of the efficiency of four marketing methods for slaughter cattle," Agribusiness, John Wiley & Sons, Ltd., vol. 9(5), pages 453-463.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ward, Clement E., 2005. "Supply Effects on Price Discovery and Pricing Choice for Fed Cattle," 2005 Conference, April 18-19, 2005, St. Louis, Missouri 19034, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    2. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    3. Lynn Hunnicutt & DeeVon Bailey & Michelle Crook, 2002. "Measuring Market Power with Variables Other than Price," Working Papers 2002-08, Utah State University, Department of Economics.
    4. Ferguson, Meagan & Anderson, John D., 2001. "Value Of Ultrasound-Based Predictions Of Carcass Quality Grade," 2001 Annual meeting, August 5-8, Chicago, IL 20620, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Ward, Clement E., 2005. "Factors Influencing the Extent of Grid Pricing of Fed Cattle," 2005 Conference, April 18-19, 2005, St. Louis, Missouri 19035, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    6. Koontz, Stephen R. & Hoag, Dana L. & Brethour, John R. & Walker, Jodine L., 2008. "Production Inefficiency in Fed Cattle Marketing and the Value of Sorting Pens into Alternative Marketing Groups Using Ultrasound Technology," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(3), pages 1-18, December.
    7. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2007. "Public Reporting of Fed Cattle Grid Prices: Policy Reform Consequences," Economics Staff Papers 7297, South Dakota State University, Department of Economics.
    8. Hogan, Robert J., Jr. & Carlberg, Jared G. & Ward, Clement E. & Peel, Derrell S., 2012. "Factors Affecting Quality Grade Discounts for Fed Cattle," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119814, Southern Agricultural Economics Association.
    9. Scott W. Fausti & Zhiguang Wang & Bashir A. Qasmi & Matthew A. Diersen, 2014. "Risk and marketing behavior: pricing fed cattle on a grid," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 601-612, September.
    10. 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.
    11. Anderson, John D. & Zeuli, Kimberly A., 2001. "The Revenue Risk Of Value-Based Pricing For Fed Cattle: A Simulation Of Grid Vs. Average Pricing," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(3), pages 1-12.
    12. Ward, Clement E. & Carlberg, Jared G. & Brocklebank, Andrea, 2007. "Comparing Canadian and U.S. Cattle Feeding Pricing Practices and Perceptions of Pricing Issues," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 8, pages 1-12, December.
    13. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2008. "The Efficacy of the Grid Marketing Channel for Fed Cattle," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6884, Southern Agricultural Economics Association.
    14. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2008. "Grid Marketing and Beef Carcass Quality: A Discussion of Issues and Trends," Economics Staff Papers 37149, South Dakota State University, Department of Economics.
    15. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2008. "The Efficacy of the Grid Marketing Channel for Fed Cattle," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6884, Southern Agricultural Economics Association.
    16. Yanyan Liu & Mary K. Muth & Stephen R. Koontz & John D. Lawrence, 2009. "Evidence of the role of marketing arrangements and valuation methods in improving beef quality," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 147-163.
    17. Fausti, Scott & Diersen, Matthew & Qasmi, Bashir & Adamson, Bill, 2015. "The Influence of Market Power and Market Trends on Grid Market Signals," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), pages 1-12.
    18. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A. & Stockton, Matthew C. & Adamson, Bill, 2013. "The Effect of Carcass Quality on the Grid versus Dressed Weight Carcass Revenue Differential," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142983, Southern Agricultural Economics Association.
    19. Fausti, Scott W. & Qasmi, Bashir A., 2002. "Does The Producer Have An Incentive To Sell Fed Cattle On A Grid?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(1), pages 1-17.
    20. Fausti, Scott W. & Qasmi, Bashir A. & Li, Jing, 2010. "Grid Pricing: An Empirical Investigation of Market Signal Clarity," Economics Staff Papers 93253, South Dakota State University, Department of Economics.
    21. Bailey, DeeVon, 2000. "Organized Symposium: Price Discovery In Livestock Markets, What Is The Role Of Public Universities," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36475, Western Agricultural Economics Association.
    22. Fausti, Scott W. & Qasmi, Bashir A. & Li, Jing, 2009. "Carcass Quality Volume and Grid Pricing: An Investigation of Cause and Effect," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46215, Southern Agricultural Economics Association.
    23. Tang, Minfeng & Lewis, Karen E. & Griffith, Andrew P. & Boyer, Christopher N., 2016. "Identifying Factors that Impact Returns to Retained Ownership of Cattle," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229766, Southern Agricultural Economics Association.
    24. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A & Adamson, Bill, 2014. "Grid Valuation of Beef Carcass Quality: Market Power and Market Trends," Economics Staff Papers 171423, South Dakota State University, Department of Economics.
    25. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2008. "Grid Marketing and Beef Carcass Quality: A Discussion of Issues and Trends," Economics Staff Papers 37149, South Dakota State University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A & Adamson, Bill, 2014. "Grid Valuation of Beef Carcass Quality: Market Power and Market Trends," Economics Staff Papers 171423, South Dakota State University, Department of Economics.
    2. 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.
    3. Scott W. Fausti & Zhiguang Wang & Bashir A. Qasmi & Matthew A. Diersen, 2014. "Risk and marketing behavior: pricing fed cattle on a grid," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 601-612, September.
    4. Fausti, Scott W. & Wang, Gerald & Diersen, Matthew A. & Qasmi, Bashir A., 2012. "Pricing Fed Cattle on a Grid: An Analysis of the Incentive Mechanism over Time," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119670, Southern Agricultural Economics Association.
    5. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2008. "Grid Marketing and Beef Carcass Quality: A Discussion of Issues and Trends," Economics Staff Papers 37149, South Dakota State University, Department of Economics.
    6. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2008. "The Efficacy of the Grid Marketing Channel for Fed Cattle," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6884, Southern Agricultural Economics Association.
    7. Bodo E. Steiner, 2017. "A phenomenon-driven approach to the study of value creation and organizational design issues in agri-business value chains," Economia agro-alimentare, FrancoAngeli Editore, vol. 19(1), pages 89-118.
    8. Anderson, John D. & Zeuli, Kimberly A., 2001. "The Revenue Risk Of Value-Based Pricing For Fed Cattle: A Simulation Of Grid Vs. Average Pricing," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(3), pages 1-12.
    9. Scott W. Fausti & Zhiguang Wang & Bashir A. Qasmi & Matthew A. Diersen, 2014. "Risk and marketing behavior: pricing fed cattle on a grid," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 601-612, September.
    10. Ferguson, Meagan & Anderson, John D., 2001. "Value Of Ultrasound-Based Predictions Of Carcass Quality Grade," 2001 Annual meeting, August 5-8, Chicago, IL 20620, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Steiner, Bodo E., 2007. "Formal beef alliances and alignment challenges: issues in contracting, pricing and quality," Project Report Series 7709, University of Alberta, Department of Resource Economics and Environmental Sociology.
    12. Fausti, Scott W. & Diersen, Matthew A. & Qasmi, Bashir A. & Li, Jing, 2010. "Value-Based Marketing: A Discussion of Issues and Trends in the Slaughter Cattle Market," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 28(2), pages 1-22.
    13. Schroeder, Ted C. & Coffey, Brian K. & Brester, Gary W., 2002. "Estimating The Effects Of Factors Influencing Grid Pricing Revenue," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36604, Western Agricultural Economics Association.
    14. Feuz, Dillon M., 1999. "Market Signals In Value-Based Pricing Premiums And Discounts," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-15, December.
    15. Fausti, Scott W. & Qasmi, Bashir A., 2002. "Does The Producer Have An Incentive To Sell Fed Cattle On A Grid?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(1), pages 1-17.
    16. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    17. Feuz, Dillon M., 1997. "Live, In-the-Beef, or Formula: Is There a "Best" Method for Selling Fed Cattle?," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35795, Western Agricultural Economics Association.
    18. McDonald, R. Allen & Schroeder, Ted C., 1999. "Factors Determining Profit For Fed Cattle Under A Value-Based Alliance," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35673, Western Agricultural Economics Association.
    19. Fausti, Scott W. & Qasmi, Bashir A. & Wittig, T., 2001. "Grid Pricing For Fed Cattle: An Empirical Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20615, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Greer, Heather C. & Trapp, James N., 2000. "Impact Of Alternative Grid Pricing Structures On Cattle Marketing Decisions," 2000 Conference, April 17-18 2000, Chicago, Illinois 18926, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:waeafa:35739. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.