Hostname: page-component-78c5997874-dh8gc Total loading time: 0 Render date: 2024-11-19T00:22:44.087Z Has data issue: false hasContentIssue false
  • English
  • Français

Performance of Alternative Component Pricing Systems for Pork

Published online by Cambridge University Press:  28 April 2015

B. Wade Brorsen ,
Jay T. Akridge ,
Michael A. Boland ,
Sean Mauney  and
John C. Forrest
B. Wade Brorsen
Affiliation:
Department of Agricultural Economics, Oklahoma State University
Jay T. Akridge
Affiliation:
Department of Agricultural Economics, Purdue University
Michael A. Boland
Affiliation:
Department of Agricultural Economics, Kansas State University
Sean Mauney
Affiliation:
Stokely, USA in Hoopeston, Illinois
John C. Forrest
Affiliation:
Department of Animal Sciences, Purdue University
Get access Rights & Permissions [Opens in a new window]

Abstract

One method of implementing value-based marketing is a component pricing system. This research develops and evaluates alternative component pricing systems for pork. Two electronic technologies for estimating carcass components (optical probe and electromagnetic scanner) were evaluated on two sets of data representing different populations. Model accuracy increased as additional components were added.

Keywords

carcass meritcomponent pricingelectromagnetic scanningpork
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 30 , Issue 2 , December 1998 , pp. 313 - 324
Copyright
Copyright © Southern Agricultural Economics Association 1998

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akridge, J.T., Brorsen, B.W., Whipker, L.D., Forrest, J.C., Kuei, C.H., and Schinckel, A.P.. “Evaluation of Alternative Techniques to Determine Pork Carcass Value.” J. Animal Sci. 70(1992):18–28.CrossRefGoogle ScholarPubMed
Ashley, R., Granger, C.W., and Schmalensee, R.. “Advertising and Aggregate Consumption: An Analysis of Causality.” Econometrica 48(1980):1149-56.CrossRefGoogle Scholar
Barry, P. “Industrialization of U.S. Agriculture: Policy, Research, and Education Needs.” Agr. and Resour. Econ. Rev. 16(1995):128-35.CrossRefGoogle Scholar
Benartzi, S., and Thaler, R.H.. “Myopic Loss Aversion and the Equity Premium Puzzle.” Quart. J. Econ. 110(February 1995):73–92.CrossRefGoogle Scholar
Berg, E.P., Forrest, J.C., and Fisher, J.E.. “Electromagnetic Scanning of Pork Carcasses in an Online Industrial Configuration.” J. Animal Sci. 73(1994):2642-52.CrossRefGoogle Scholar
Boland, M.A. “I Sold the Best.” National Pork Producers Council, Des Moines IA, 1997.Google Scholar
Boland, M.A., Foster, K.A., and Akridge, J.T.. “Packer Sorting Strategies for Fresh Pork.” Agribus.: An Internat. J. 11(September/October 1995):423-30.3.0.CO;2-X>CrossRefGoogle Scholar
Boland, M.A., Foster, K.A., Schinckel, A.P., Wagner, J., Chen, W., Berg, E.P., and Forrest, J.C.. “Alternative Pork Carcass Evaluation Techniques: I. Differences in Predictions of Value.” J. Animal Sci. 73(1995a):637-44.CrossRefGoogle ScholarPubMed
Boland, M.A., Foster, K.A., Schinckel, A.P., Wagner, J., Chen, W., Berg, E.P., and Forrest, J.C.. “Alternative Pork Carcass Evaluation Techniques: II. Statistical Analysis of Error Attributable to Sex, Genotype, and Weight.” J. Animal Sci. 73(1995b):645-50.CrossRefGoogle Scholar
Brandt, J.A., and Bessler, D.. “Price Forecasting and Evaluation: An Application to Agriculture.” J. Forecasting 2(July/August 1983):237-48.CrossRefGoogle Scholar
DiPietrie, D., Morehead, J., and Duffy, J.. “Strategies for Controlling Product from Production to Consumption.” Unpub. manu., University Extension Commercial Agriculture Program Swine-Focus Team, University of Missouri, Columbia, November 1995.Google Scholar
Gillmeister, W., Yonkers, R.D., Dunn, J.W., and Sleper, J.. “Hedonic Pricing of Milk Components.” Abstract. Amer. J. Agr. Econ. 74(December 1992):1307.Google Scholar
Hayenga, M.L., Grisdale, B.S., Kauffman, R.G., Cross, H.R., and Christian, L.L.. “A Carcass Merit Pricing System for the Pork Industry.” Amer. J. Agr. Econ. 67(May 1985):315-19.CrossRefGoogle Scholar
Jekanowski, M.D. “Value-Based Marketing of Pork: An Evaluation of Current and Potential Systems.” Unpub. M.S. thesis, Dept. of Agr. Econ., Purdue University, West Lafayette IN, August 1993.Google Scholar
Jekanowski, M.D., Akridge, J.T., Brorsen, B.W., Mauney, S., and Schinckel, A.P.. “Measuring the Effects of pST on Swine Carcass Value.” Rev. Agr. Econ. 18(January 1996):21–30.Google Scholar
Kahneman, D., and Tversky, A.. “Prospect Theory: An Analysis of Decision Under Risk.” Econometrica 47(1979):263-91.CrossRefGoogle Scholar
Kauffman, R.G. “Lean Value Pricing System—Pricing to Stimulate Change.” In Proceedings of Pork Strategies 2000: A Marketing and Technology Dynamics Symposium for the Pork Industry, pp. 77–82. National Pork Producers Council, Des Moines IA, 4-5 December 1990.Google Scholar
Kauffman, R.G., Drachenberg, E., Hermel, T., Hull, D., and Keough, W.. “Do Pork Packers Pay for Leanness?” Unpub. report, Dept. of Animal Science, University of Wisconsin, Madison, June 1988.Google Scholar
Kenyon, D., McKissick, J., and Zering, K.. “A Comparison of Carcass Value Pricing Systems of Southeast Hog Plants.” Paper presented at the NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management, Chicago IL, 24-25 April 1995.Google Scholar
Kuei, C.H. “Evaluation of Electronic Methods for Estimation of Pork Carcass Composition.” Unpub. Ph.D. diss., Dept. of Animal Sciences, Purdue University, West Lafayette IN, December 1991.Google Scholar
Lawrence, J.D. “Factors that Influence Prices Producers Receive for Hogs: Statistical Analysis of Killsheet and Survey Data.” Staff Pap. No. 279, Dept. of Econ., Iowa State University, Ames, March 1996.Google Scholar
Lenz, L.E., Mittelhammer, R.C., and Hillers, J.K.. “Pricing Milk Components at Retail via Hedonic Analysis.” J. Dairy Sci. 74(January 1990):1803-14.CrossRefGoogle Scholar
Lesser, W.H. “The Impact of Component Pricing of Soybeans and Milk: Comment.” Amer. J. Agr. Econ. 64(1982):161-63.CrossRefGoogle Scholar
Mauney, S. “Economic Evaluation of Alternative Technologies to Determine Pork Carcass Value.” Unpub. M.S. thesis, Dept. of Agr. Econ., Purdue University, West Lafayette IN, August 1991.Google Scholar
National Pork Producers Council. “Fat-Free Lean Index.” NPPC, Des Moines IA, 1994.Google Scholar
National Pork Producers Council. “Lean Guide to Pork Value.” NPPC, Des Moines IA, 1987.Google Scholar
Perrin, R.K. “Component Pricing of Soybeans and Milk.” Amer. J. Agr. Econ. 62(August 1980):445-55.CrossRefGoogle Scholar
Steel, R.G.D., and Torrie, J.H.. Principles and Procedures of Statistics. New York: McGraw-Hill, 1960.Google Scholar
Thompson, J.M., Sun, F., Kuczek, T., Schinckel, A.P., and Stewart, T.S.. “The Effect of Genotype and Sex on the Patterns of Protein Accretion in Pigs.” Animal Sci. 63(1996):265-76.CrossRefGoogle Scholar
Thompson, S.N. “Economic Trends in the Marketing of Iowa Livestock.” Unpub. Ph.D. diss., Dept. of Agr. Econ., University of Minnesota, St. Paul, 1937.Google Scholar
Updaw, N.J. “Component Pricing of Soybeans.” Amer. J. Agr. Econ. 62(November 1980):647-55.CrossRefGoogle Scholar
U.S. Department of Agriculture. Grade and Yield Marketing of Hogs. USDA/Packers and Stockyards Administration, Washington DC, 1984.Google Scholar
U.S. Department of Agriculture. National Carlot Meat Trade Review. USDA Livestock Market News, Des Moines IA, 1995.Google Scholar
Whipker, L.D., Akridge, J.T., and Jekanowski, M.D.. “Pricing Lean: A Lotus Template for Determining the Price of Lean Pork, Version 2.1.” Unpub. manu., Dept. of Agr. Econ., Purdue University, West Lafayette IN, November 1992.Google Scholar