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Analysis of the efficiency of four marketing methods for slaughter cattle

Author

Listed:
  • Dillon M. Feuz

    (Department of Economics at South Dakota State University)

  • Scott W. Fausti

    (Department of Animal and Range Science at South Dakota State University)

  • John J. Wagner

    (Department of Animal and Range Science at South Dakota State University)

Abstract

Four marketing methods for slaughter cattle were analyzed and examined for pricing efficiency. Profits per head were found to be significantly different under the various marketing methods. Greater price discrimination occurred as carcass information increased. Increased price discrimination led to greater dispersion of profit from one marketing method to another. Different marketing methods appeared to send different production signals to producers. The desires of the consumer for less fat and a high-quality product did not appear to be reaching the producers in the form of profit incentives under the most widely used marketing method. © 1993 John Wiley & Sons, Inc.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:agribz:v:9:y:1993:i:5:p:453-463
    DOI: 10.1002/1520-6297(199309)9:5<453::AID-AGR2720090504>3.0.CO;2-1
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    References listed on IDEAS

    as
    1. Alan Barkema & Mark Drabenstott, 1990. "A crossroads for the cattle industry," Economic Review, Federal Reserve Bank of Kansas City, vol. 75(Nov), pages 47-66.
    2. Branson, Robert E. & Cross, H. Russell & Savell, Jeff W. & Smith, Gary C. & Edwards, Richard A., 1986. "Marketing Implications From The National Consumer Beef Study," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(1), pages 1-10, July.
    3. Cox, Linda J. & McMullen, B. Starr & Garrod, Peter V., 1990. "An Analysis Of The Use Of Grades And Housebrand Labels In The Retail Beef Market," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-9, December.
    4. Menkhaus, Dale J. & Whipple, Glen D. & Field, Ray A. & Moore, Shawn W., 1988. "Impact Of A Price Premium On Sales Of Branded, Low Fat, Fresh Beef," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270421, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Dale J. Menkhaus & Glen D. Whipple & Ray A. Field & Shawn W. Moore, 1988. "Impact of a price premium on sales of branded, low fat, fresh beef," Agribusiness, John Wiley & Sons, Ltd., vol. 4(6), pages 521-534.
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