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Derived Demand for Cattle Feeding Inputs

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  • Arnade, Carlos Anthony
  • Mathews, Kenneth H., Jr.
  • Jones, Keithly G.

Abstract

Derived demand relationships among four weight categories of feeder cattle entering Texas feedlots and feed were examined using a Generalized McFadden dual cost function specified as an error correction model. Relationships among own- and cross-price elasticities provide evidence for at least two cattle feeding enterprises, feeding lightweight feeder cattle (calves) and feeding heavier cattle. These results indicate systematic differences in demand relationships among the different weight classes, providing explanation and insight into mixed results from earlier studies. Seasonality differed across weight categories, providing additional support for multiple cattle feeding enterprises. A third step was added to the Engle-Granger two-step estimation procedure to incorporate information provided in the second step.

Suggested Citation

  • Arnade, Carlos Anthony & Mathews, Kenneth H., Jr. & Jones, Keithly G., 2005. "Derived Demand for Cattle Feeding Inputs," 2005 Annual meeting, July 24-27, Providence, RI 19454, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19454
    DOI: 10.22004/ag.econ.19454
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    Cited by:

    1. Tsakiridis, Andreas & Hanrahan, Kevin & Breen, James & Wallace, Michael & O’Donoghuea, Cathal, 2016. "Feed substitution and economies of scale in Irish beef production systems," 149th Seminar, October 27-28, 2016, Rennes, France 244769, European Association of Agricultural Economists.
    2. Anderson, David P. & Daley, Erin & Outlaw, Joe L., 2007. "The Interaction between ethanol and cattle feeding: economics and issues," Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri 48770, Farm Foundation.

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