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Feeding and the Equilibrium Feeder Animal Price-Weight Schedule

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  • Hennessy, David A.

Abstract

Feeder animal prices depend on fed animal prices, the biological growth technology, and feed costs. In addition, daily maintenance costs can be avoided through accelerated feeding. These observations allow us to model optimal feeding under equilibrium feeder animal pricing. Our model enables a better understanding of regulation in feedstuff markets. The feeder animal price-weight schedule is likely decreasing and convex in weight. Prices for animals with better growth potential should be less sensitive to feed and fed animal prices. Prices for lighter animals should be more sensitive to these prices. Regression analyses on Southern Great Plains cattle prices provide support for this model.

Suggested Citation

  • Hennessy, David A., 2006. "Feeding and the Equilibrium Feeder Animal Price-Weight Schedule," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-23, August.
    • Handle: RePEc:ags:jlaare:8609
    DOI: 10.22004/ag.econ.8609
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    Cited by:

    1. Li, Yunhan & Shonkwiler, Scott, 2016. "A Dynamic Model of U. S. Beef Cow Inventories," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235385, Agricultural and Applied Economics Association.
    2. Hennessy, David A. & Zhang, Jing & Bai, Na, 2019. "Animal health inputs, endogenous risk, general infrastructure, technology adoption and industrialized animal agriculture," Food Policy, Elsevier, vol. 83(C), pages 355-362.

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    More about this item

    Keywords

    Livestock Production/Industries;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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