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Grid Marketing and Beef Carcass Quality: A Discussion of Issues and Trends

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Author Info

  • Fausti, Scott

    ()
    (Department of Economics, South Dakota State University)

  • Qasmi, Bashir

    ()
    (Department of Economics, South Dakota State University)

  • Diersen, Matt

    ()
    (Department of Economics, South Dakota State University)

Abstract

Beef industry data suggest that improvements in carcass yield and quality grades have stagnated recently. Empirical analysis, based on USDA market reports, indicates that the share of steer slaughter volume marketed on a grid is less than industry estimates and the growth in market share has stagnated. Trend analysis of market share suggests that grid pricing has become an important marketing channel, but has not become the dominant marketing channel. The lack of industry progress toward achieving the carcass quality goals suggests that grid pricing has not captured the level of market share needed to realize the goals envisioned for it as a value based marketing system.

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File URL: http://ageconsearch.umn.edu/bitstream/37149/2/StaffPaper2008-3-AgEcSearch.pdf
File Function: Final version, 2008
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Bibliographic Info

Paper provided by South Dakota State University, Department of Economics in its series Staff Papers with number 080003.

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Length: 31 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:sda:staffp:080003

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Postal: Box 504, Scobey Hall, Brookings, SD 57007-0895
Phone: 605-688-4141
Fax: 605-688-6386
Web page: http://www.sdstate.edu/econ/
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Keywords: cattle pricing; grid pricing; farm policy;

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  1. 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(02), December.
  2. Johnson, Heather C. & Ward, Clement E., 2006. "Impact of Beef Quality on Market Signals Transmitted by Grid Pricing," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April.
  3. Peter C.B. Phillips & Sam Ouliaris, 1987. "Asymptotic Properties of Residual Based Tests for Cointegration," Cowles Foundation Discussion Papers 847R, Cowles Foundation for Research in Economics, Yale University, revised Jul 1988.
  4. 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 (IAMA), vol. 5(01).
  5. 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.
  6. Schroeder, Ted C. & Ward, Clement E. & Mintert, James R. & Peel, Derrell S., 1997. "Value-Based Pricing of Fed Cattle: Challenges and Research Agenda," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35837, Western Agricultural Economics Association.
  7. Johnson, Heather C. & Ward, Clement E., 2005. "Market Signals Transmitted by Grid Pricing," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(03), December.
  8. 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 (IAMA), vol. 1(01).
  9. 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.
  10. McDonald, R. Allen & Schroeder, Ted C., 2003. "Fed Cattle Profit Determinants Under Grid Pricing," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(01), April.
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