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Alternative Marketing Arrangements in the Beef Industry: Definition, Use, and Motives

Author

Listed:
  • Taylor, Justin
  • Cates, Sheryl C
  • Karns, Shawn A
  • Lawrence, John D.
  • Koontz, Stephen R.
  • Muth, Mary K.

Abstract

During the 2002 Farm Bill debate, several pieces of legislation were aimed at restricting packers' livestock purchasing practices. A specific concern focused on marketing arrangements that gave packers control over livestock more than 14 days prior to slaughter, commonly known as "captive supply." As a compromise, in 2003 Congress requested a study of alternative marketing arrangements (AMAs) that are used as alternatives to the cash market. The resulting Grain Inspection, Packers and Stockyards Administration (GIPSA) Livestock and Meat Marketing Study was completed in early 2007 (Muth et al., 2007; Cates et al., 2007). However, during the time of the study, much of the proposed legislation has been reintroduced, and several are currently being discussed along with the 2007 Farm Bill. The purpose of this discussion is to illustrate perceived benefits of using AMAs to producers and packers.

Suggested Citation

  • Taylor, Justin & Cates, Sheryl C & Karns, Shawn A & Lawrence, John D. & Koontz, Stephen R. & Muth, Mary K., 2007. "Alternative Marketing Arrangements in the Beef Industry: Definition, Use, and Motives," Staff General Research Papers Archive 12907, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12907
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Leon Gwaka & Job Dubihlela, 2020. "The Resilience of Smallholder Livestock Farmers in Sub-Saharan Africa and the Risks Imbedded in Rural Livestock Systems," Agriculture, MDPI, vol. 10(7), pages 1-11, July.

    More about this item

    Keywords

    alternative marketing arrangements; hogs;

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