IDEAS home Printed from https://ideas.repec.org/p/ags/nc8191/285715.html

Economic Implications of Show List, Pen Level, and Individual Animal Pricing of Fed Cattle

Author

Listed:
  • Feuz, Dillon M.

Abstract

Fed cattle are currently sold on a show list (several pens of market ready cattle), pen by pen, or individual head basis and may be priced using live weight, dressed weight, or grid or formula pricing. Analysis of 85 pens, 5520 head, of fed cattle revealed that marketing level, i.e., show list, pen, or individual, had only limited impact on the variability of revenue on a pen average basis. Moving from live weight to dressed weight pricing did slightly increase the variability of pen average revenue. Revenue variability on an individual head basis increased with grid pricing. In explaining revenue variability, weight explained the majority of the variation in revenue. Marbling difference may account for about 25 percent of the variation, depending upon time period and grid. Fat thickness and ribeye area accounted for less than three percent of the variation in revenue.

Suggested Citation

  • Feuz, Dillon M., 1998. "Economic Implications of Show List, Pen Level, and Individual Animal Pricing of Fed Cattle," 1981-1999 Conference Archive 285715, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:nc8191:285715
    DOI: 10.22004/ag.econ.285715
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/285715/files/confp16-98.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.285715?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ted C. Schroeder & Clement E. Ward & James R. Mintert & Derrell S. Peel, 1998. "Value-Based Pricing of Fed Cattle: Challenges and Research Agenda," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 125-134.
    2. Ward, Clement E. & Koontz, Stephen R., 1996. "Short-Run Captive Supply Relationships with Fed Cattle Transaction Prices," 1981-1999 Conference Archive 285663, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    3. Jones, Rodney & Schroeder, Ted & Mintert, James & Brazle, Frank, 1992. "The Impacts of Quality on Cash Fed Cattle Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 149-162, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pierce, Vern & Parcell, Joe, 1999. "Determinants of Replacement Heifer Price Differentials," 1981-1999 Conference Archive 285746, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Feuz, Dillon M., 1999. "Market Signals In Value-Based Pricing Premiums And Discounts," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-15, December.
    3. Lynn Hunnicutt & DeeVon Bailey & Michelle Crook, 2002. "Measuring Market Power with Variables Other than Price," Working Papers 2002-08, Utah State University, Department of Economics.
    4. Anderson, John D. & Trapp, James N., 1999. "Estimated Value of Non-Price Vertical Coordination in the Fed Cattle Market," Staff Papers 232529, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    5. Ward, Clement E. & Choi, Seung-Churl, 1998. "Evaluating Potential Changes in Price Reporting Accuracy," 1981-1999 Conference Archive 285721, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    6. Fantu Bachewe & Derek Headey & Bart Minten, 2023. "Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 289-306, March.
    7. Ted C. Schroeder & Clement E. Ward & James R. Mintert & Derrell S. Peel, 1998. "Value-Based Pricing of Fed Cattle: Challenges and Research Agenda," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 125-134.
    8. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A & Adamson, Bill, 2014. "Grid Valuation of Beef Carcass Quality: Market Power and Market Trends," Economics Staff Papers 171423, South Dakota State University, Department of Economics.
    9. Anderson, David P. & Mintert, James R. & Brester, Gary W., 1998. "The North American Livestock Industry: A U.S. Perspective," Proceedings of the 4th Agricultural and Food Policy Systems Information Workshop 1998: Economic Harmonization in the Canadian\U.S.\Mexican Grain-Livestock Subsector; 16765, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    10. Schroeder, Ted C., 2025. "Agricultural Economics Research as Cattle and Beef Markets Ascended from Demise," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 50(4), December.
    11. Anderson, John D. & Zeuli, Kimberly A., 2001. "The Revenue Risk Of Value-Based Pricing For Fed Cattle: A Simulation Of Grid Vs. Average Pricing," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(3), pages 1-12.
    12. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    13. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2008. "Grid Marketing and Beef Carcass Quality: A Discussion of Issues and Trends," Economics Staff Papers 37149, South Dakota State University, Department of Economics.
    14. Alderson, Caitlyn, 2025. "Fed Cattle Basis Risk under Grid Pricing," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360702, Agricultural and Applied Economics Association.
    15. Fausti, Scott W. & Wang, Gerald & Diersen, Matthew A. & Qasmi, Bashir A., "undated". "Pricing Fed Cattle on a Grid: An Analysis of the Incentive Mechanism over Time," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119670, Southern Agricultural Economics Association.
    16. Ferrier, Peyton & Lamb, Russell, 2007. "Government regulation and quality in the US beef market," Food Policy, Elsevier, vol. 32(1), pages 84-97, February.
    17. 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(2), pages 1-15, December.
    18. Parcell, Joseph L. & Dhuyvetter, Kevin C. & Patterson, David J. & Randle, Richard, 2005. "The Value of Carcass Characteristic EPDs in Bred Heifer Price," 2005 Conference, April 18-19, 2005, St. Louis, Missouri 19041, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    19. Pierce, Vern & Parcell, Joe, 1999. "Determinants of Replacement Heifer Price Differentials," 1981-1999 Conference Archive 285746, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    20. Ali, Jabir & Kumar, Sushil, 2011. "Information and communication technologies (ICTs) and farmers’ decision-making across the agricultural supply chain," International Journal of Information Management, Elsevier, vol. 31(2), pages 149-159.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nc8191:285715. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.farmdoc.illinois.edu/nccc134/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.