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Value-Based Pricing of Fed Cattle: Challenges and Research Agenda

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  • Schroeder, Ted C.
  • Ward, Clement E.
  • Mintert, James R.
  • Peel, Derrell S.

Abstract

Beef has lost considerable market share because it does not offer adequate value to consumers. Important components of value are problems related to inadequate beef quality determination and pricing fed cattle on averages. This study summarizes results of industry surveys solicited to investigate problems with value-based fed cattle pricing. A research agenda to address the problems is proposed. Research needs include more information on the expected costs and benefits of a less subjective and improved beef quality identification system. More information is needed regarding economic trade-offs between beef carcass quality and cattle production management. All segments of the beef industry, from cow-calf producers through retailers, are realizing more opportunities to develop longer term contractual relationships. Many of these agreements substantially alter production and market risk and expected returns and therefore need in-depth investigation. In general, more research is needed on ways to improve both price and non price coordination of the complex beef market.
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Suggested Citation

  • Schroeder, Ted C. & Ward, Clement E. & Mintert, James R. & Peel, Derrell S., 1997. "Value-Based Pricing of Fed Cattle: Challenges and Research Agenda," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35837, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeare:35837
    DOI: 10.22004/ag.econ.35837
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    References listed on IDEAS

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    1. 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.
    2. Purcell, Wayne D., 1989. "Analysis of Demand for Beef, Pork, Lamb and Broilers: Implications for the Future," Staff Papers 232388, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    3. Clement E. Ward, 1992. "Inter-Firm Differences in Fed Cattle Prices in the Southern Plains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 480-485.
    4. Ward, Clement E., 1981. "Short-Period Pricing Models For Fed Cattle And Impacts Of Wholesale Carcass Beef And Live Cattle Futures Market Prices," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(01), pages 1-8, July.
    5. 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.
    6. Ward, Clement E., 1981. "Short-Period Pricing Models for Fed Cattle and Impacts of Wholesale Carcass Beef and Live Cattle Futures Market Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(1), pages 125-132, July.
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