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Abstract

The impact of the March, 2012 LFTB media event on beef prices was estimated by using the Relative Price of a Substitute Good method applied to 50% and 90% lean beef trim and cull cow prices. Stationarity tests conclude both of the relative prices were cointegrated prior to the LFTB event. Preliminary results suggest the date of the price impact was April 7, 2012 with current estimates suggesting an 11-12% reduction in relative prices of 50% beef trim. Ongoing research is adding more recent data and additional assessments to assess robustness of initial findings.

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