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Fed Cattle Profit Determinants Under Grid Pricing

Author

Listed:
  • McDonald, R. Allen
  • Schroeder, Ted C.

Abstract

This study determines the relative effects of price, cattle quality, and feeding performance factors on profit per head for fed cattle marketed via a grid structure. Two different data sets of cattle that were marketed in two different grid pricing systems are used in the analysis with comparisons of results made between grids. Grid base price and feeder cattle price are the most important determinants of profit over time in both grids. However, considering only nonprice variables, the cumulative quality of cattle in a pen is also an important profit determinant.

Suggested Citation

  • McDonald, R. Allen & Schroeder, Ted C., 2003. "Fed Cattle Profit Determinants Under Grid Pricing," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 35(1), pages 97-106, April.
    • Handle: RePEc:cup:jagaec:v:35:y:2003:i:01:p:97-106_00
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    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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