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The influence of weight and fat on lamb prices revisited

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  • Hufton, Charlie
  • Griffith, Garry R.
  • Mullen, John D.

Abstract

Previous research has found inconsistencies in the valuation of weight and fat characteristics of lamb carcasses between the saleyard and wholesale markets. In this paper, recent New South Wales saleyard and wholesale price data on different classes of lamb are analysed using hedonic methods to determine the relative influence of weight and fat on prices received. Fat score 2 lambs are heavily discounted relative to fat score 3 lambs, and there are significant seasonal price differentials, but there are no significant premiums or discounts for weight or other fat characteristics. These results hold for both the saleyard and wholesale markets. The implication is that the efficiency of price discovery in the Australian lamb market has improved a little in recent years in the sense that premiums and discounts are now consistent across market levels. However consumers’ stated preferences for large lean lambs are not being reflected in price incentives generated in the live lamb and lamb carcass markets.

Suggested Citation

  • Hufton, Charlie & Griffith, Garry R. & Mullen, John D., 2008. "The influence of weight and fat on lamb prices revisited," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6021, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare08:6021
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    File URL: http://purl.umn.edu/6021
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    References listed on IDEAS

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    1. John D. Mullen & Michael K. Wohlgenant, 1991. "The Willingness Of Consumers To Pay For Attributes Of Lamb," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 247-262, December.
    2. Dhuyvetter, Kevin C. & Schroeder, Ted C. & Simms, Danny D. & Bolze, Ronald P., Jr. & Geske, Jeremy, 1996. "Determinants Of Purebred Beef Bull Price Differentials," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(02), December.
    3. Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, April.
    4. Mullen, John D. & Alston, Julian M., 1994. "The Impact on the Australian Lamb Industry of Producing Larger Leaner Lamb," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(01), April.
    5. Oczkowski, Edward, 2001. "Hedonic Wine Price Functions and Measurement Error," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 374-382, December.
    6. Mullen, John D., 1995. "The Influence of Fat and Weight on the Price of Lamb in the Homebush Livestock and Wholesale Markets," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), April.
    7. Ahmadi-Esfahani, Fredoun Z. & Stanmore, Roland G., 1994. "Quality Premiums For Australian Wheat In The Growing Asian Markets," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(03), December.
    8. Fredoun Z. Ahmadi-Esfahani & Roland G. Stanmore, 1994. "Values of Australian wheat and flour quality characteristics," Agribusiness, John Wiley & Sons, Ltd., vol. 10(6), pages 529-536.
    9. Schroeder, Ted C. & Mintert, James R. & Brazle, Frank & Grunewald, Orlen C., 1988. "Factors Affecting Feeder Cattle Price Differentials," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(01), July.
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    More about this item

    Keywords

    lamb; marketing; hedonic models; carcass characteristics; Demand and Price Analysis; Livestock Production/Industries; Marketing;

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