Evidence of the Role of Marketing Arrangements and Valuation Methods in Improving Beef Quality
Low and inconsistent beef quality has been blamed by some for the losses of beefï¾’s share of total meat consumption. Tighter vertical coordination through use of alternative marketing arrangements and more precise price signaling through use of different cattle valuation methods may help improve beef quality because these mechanisms facilitate information exchange enabling producers to respond better to consumer demand. For the congressionally mandated Livestock and Meat Marketing Study, we modeled differences in levels and variances of cattle quality associated with particular marketing arrangements and valuation methods using fed cattle purchase data from 29 large U.S. beef packing plants for October 2002 through March 2005. Results indicate fed cattle procured through marketing agreements and packer ownership had higher and more consistent quality compared to other types of arrangements. Auction market cattle quality was the most inconsistent. Fed cattle valued using carcass weight with a grid were associated with higher and more consistent quality.
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|Date of creation:||22 Dec 1009|
|Date of revision:|
|Publication status:||Published in Agribusiness: An International Journal, Spring 2009, vol. 25 no. 2|
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- 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(02), December.
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- Schroeter, John R. & Azzam, Azzeddine M., 2003.
"Captive Supplies and the Spot Market Price of Fed Cattle: The Plant-Level Relationship,"
Staff General Research Papers
10082, Iowa State University, Department of Economics.
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- Feuz, Dillon M., 1999. "Market Signals In Value Based Pricing Premiums And Discounts," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35739, Western Agricultural Economics Association.
- Azzeddine Azzam, 1998. "Captive Supplies, Market Conduct, and the Open-Market Price," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 76-83.
- Whitley, John E., 2002. "The political economy of quality measurement: a case study of the USA slaughter cattle market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), December.
- Schroeter, John R. & Azzam, Azzeddine M., 1999. "Econometric Analysis of Fed Cattle Procurement in the Texas Panhandle," Staff General Research Papers 11365, Iowa State University, Department of Economics.
- Raper, Kellie Curry & Black, J. Roy & Hogberg, Michael & Hilker, James H., 2005. "Assessing Bottlenecks in Vertically Organized Beef Systems," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(01), March.
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