Differences in Prices and Price Risk Across Alternative Marketing Arrangements Used in the Fed Cattle Industry Report as inadecuate




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Information on prices and price risk differences across marketing arrangements aids fed cattle producers in making choices about marketing methods. As part of the congressionally mandated Livestock and Meat Marketing Study, we investigated fed cattle price and price risk differences across marketing arrangements. The analysis uses data representing cattle purchased by 29 large beef packing plants from October 2002 through March 2005. Results indicate that marketing agreements offered the best tradeoff between price level and price risk. Forward contracts had the lowest average yet highly volatile prices. Auction barn prices were higher than other methods but also the most volatile.

Keywords: alternative marketing arrangements ; fed cattle ; hedonic ; price risk ; price volatility ; prices

Subject(s): Livestock Production/Industries

Marketing

Risk and Uncertainty

Issue Date: 2008-04

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/36711 Published in: Journal of Agricultural and Resource Economics, Volume 33, Number 1 Page range: 118-135

Total Pages: 18

Record appears in: Western Agricultural Economics Association > Journal of Agricultural and Resource Economics





Author: Muth, Mary K. ; Liu, Yanyan ; Koontz, Stephen R. ; Lawrence, John D.

Source: http://ageconsearch.umn.edu/record/36711?ln=en







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