Feeding and the Equilibrium Feeder Animal Price-Weight Schedule

Feeder animal prices depend on fed animal prices, the biological growth technology, and feed costs. In addition, daily maintenance costs can be avoided through accelerated feeding. These observations allow us to model optimal feeding under equilibrium feeder animal pricing. Our model enables a better understanding of regulation in feedstuff markets. The feeder animal price-weight schedule is likely decreasing and convex in weight. Prices for animals with better growth potential should be less sensitive to feed and fed animal prices. Prices for lighter animals should be more sensitive to these prices. Regression analyses on Southern Great Plains cattle prices provide support for this model.


Issue Date:
2006-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/8609
Published in:
Journal of Agricultural and Resource Economics, Volume 31, Number 2
Page range:
239-261
Total Pages:
23




 Record created 2017-04-01, last modified 2017-08-23

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