Impact of Beef Quality on Market Signals Transmitted by Grid Pricing

Value-based marketing is shaping cattle production; however, market signals differ dramatically depending on carcass quality. This study applies a two-stage coefficients of separate determination procedure to four regional fed cattle datasets sorted by grid value and by carcass quality attributes. Weight is the strongest signal sent when higher valued cattle and better quality cattle are sold on a grid. Quality characteristics send stronger signals when lower valued cattle and poorer quality cattle are sold on a grid. Producers of lower quality cattle can potentially gain $52 to $149 per head by improving quality and $113 to $150 per head by adding weight.


Issue Date:
2006-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43750
Published in:
Journal of Agricultural and Applied Economics, Volume 38, Number 1
Page range:
77-90
Total Pages:
14
JEL Codes:
Q11; Q13




 Record created 2017-04-01, last modified 2017-08-25

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