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Examining Packer Choice Of Slaughter Cattle Procurment And Pricing Methods

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  • Capps, Oral, Jr.
  • Love, H. Alan
  • Williams, Gary W.
  • Adams, Wendi L.

Abstract

Using daily fed cattle purchase transaction records collected by the Packers and Stockyards Programs over the period April 1992 to April 1993, we identify characteristics associated with the choices of fed cattle procurement and pricing methods. The methodology involves the use of a multinomial logit model. Regional concentration; processing capacity; number of head per lot; average weight per head; cattle type; yield grade, quarterly grade, seasonality, and distance from packing plants play a significant role in determining the methods of procurement and pricing chosen by packers. The method chosen by packers to procure fed cattle also affects the choice of a given pricing method.

Suggested Citation

  • Capps, Oral, Jr. & Love, H. Alan & Williams, Gary W. & Adams, Wendi L., 1999. "Examining Packer Choice Of Slaughter Cattle Procurment And Pricing Methods," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(1), pages 1-15, April.
    • Handle: RePEc:ags:arerjl:31491
    DOI: 10.22004/ag.econ.31491
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    References listed on IDEAS

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    1. Azzam, Azzeddine M. & Schroeter, John R., 1991. "Implications Of Increased Regional Concentration And Oligopsonistic Coordination In The Beef Packing Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-8, December.
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    6. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    7. Ward, Clement E., 1979. "Slaughter-Cattle Pricing and Procurement Practices of Meatpackers," Agricultural Information Bulletins 309239, United States Department of Agriculture, Economic Research Service.
    8. Ward, Clement E., 1981. "Short-Period Pricing Models For Fed Cattle And Impacts Of Wholesale Carcass Beef And Live Cattle Futures Market Prices," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(1), pages 1-8, July.
    9. Ted C. Schroeder & Rodney Jones & James Mintert & Andrew P. Barkley, 1993. "The Impact of Forward Contracting on Fed Cattle Transaction Prices," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(2), pages 325-337.
    10. Elam, Emmett W., 1992. "Cash Forward Contracting Versus Hedging Of Fed Cattle, And The Impact Of Cash Contracting On Cash Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-13, July.
    11. Ward, Clement E., 1981. "Short-Period Pricing Models for Fed Cattle and Impacts of Wholesale Carcass Beef and Live Cattle Futures Market Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(1), pages 125-132, July.
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    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. John M. Crespi & Richard J. Sexton, 2004. "Bidding for Cattle in the Texas Panhandle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 660-674.
    3. GwanSeon Kim & Tyler Mark, 2023. "What factors make consumers in the USA buy hemp products? Evidence from Nielsen consumer panel data," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-19, December.
    4. Lee, Yoonsuk & Ward, Clement E. & Brorsen, B. Wade, 2010. "Relationships among Prices across Alternative Marketing Arrangements for Fed Cattle and Hogs," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56282, Southern Agricultural Economics Association.
    5. Pedro A. Alviola & Oral Capps, 2010. "Household demand analysis of organic and conventional fluid milk in the United States based on the 2004 Nielsen Homescan panel," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 369-388.

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    Livestock Production/Industries;

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