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Determinants Of Profit Variability In Fed Cattle Grid Pricing

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  • McDonald, R. Allen
  • Schroeder, Ted C.

Abstract

This study determines the relative impacts of price, cattle quality, and feeding performance factors on profit per head for fed cattle marketed via a grid structure. Two different data sets of cattle that were marketed in two different grid pricing systems are used in the analysis with comparisons of results made between grids. Grid base price and feeder cattle price are the most important determinants of profit over time in both grids. However, only considering non-price variables, the cumulative quality of cattle in a pen is the most important profit determinant followed by average daily gain in one grid and feed efficiency in the other.

Suggested Citation

  • McDonald, R. Allen & Schroeder, Ted C., 2000. "Determinants Of Profit Variability In Fed Cattle Grid Pricing," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36514, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeava:36514
    DOI: 10.22004/ag.econ.36514
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    References listed on IDEAS

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    1. Purcell, Wayne D., 1998. "A Primer on Beef Demand," Staff Papers 232526, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    2. Fausti, Scott W. & Feuz, Dillon M. & Wagner, John J., 1998. "Value Based Marketing For Fed Cattle: A Discussion Of The Issues," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(1), pages 1-18.
    3. McDonald, R. Allen & Schroeder, Ted C., 1999. "Factors Determining Profit For Fed Cattle Under A Value-Based Alliance," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35673, Western Agricultural Economics Association.
    4. Schroeder, Ted C. & Ward, Clement E. & Mintert, James & Peel, Derrell S., 1998. "Beef Industry Price Discovery: A Look Ahead," Staff Papers 232524, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    5. Feuz, Dillon M. & Fausti, Scott W. & Wagner, John J., 1995. "Risk And Market Participant Behavior In The U.S. Slaughter-Cattle Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-10, July.
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    Cited by:

    1. Lewis, Karen & Griffith, Andrew & Boyer, Christopher & Rhinehart, Justin, 2015. "Returns to Retained Ownership through Finishing for Beef Cattle Originating from Tennessee," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196620, Southern Agricultural Economics Association.
    2. Robertson, Jessica & Parcell, Joseph L., 2006. "Value Added to the Beef Cattle Chain through Genetic Management," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35345, Southern Agricultural Economics Association.
    3. Robertson-Carolan, Jessica & Parcell, Joseph L. & Patterson, David J. & Eakins, Roger & Franken, Jason R.V., 2011. "Valuing Beef Herd Dam Genetic Pedigree Management," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2011, pages 1-6, June.
    4. Jano, Pilar & Hueth, Brent, 2013. "Quality Incentives in Informal Markets: The Case of Ecuadorian Cocoa," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150378, Agricultural and Applied Economics Association.
    5. repec:ags:aaea13:150001 is not listed on IDEAS

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    Livestock Production/Industries;

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