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Fed Cattle Profit Determinants Under Grid Pricing

Published online by Cambridge University Press:  28 April 2015

R. Allen McDonald  and
Ted C. Schroeder
R. Allen McDonald
Affiliation:
Department of Animal Science, University of Nebraska, Lincoln, NE (former research assistant in Agricultural Economics at Kansas State University)
Ted C. Schroeder
Affiliation:
Department of Agricultural Economics, Kansas State University, Manhattan, KS
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Abstract

This study determines the relative effects of price, cattle quality, and feeding performance factors on profit per head for fed cattle marketed via a grid structure. Two different data sets of cattle that were marketed in two different grid pricing systems are used in the analysis with comparisons of results made between grids. Grid base price and feeder cattle price are the most important determinants of profit over time in both grids. However, considering only nonprice variables, the cumulative quality of cattle in a pen is also an important profit determinant.

Keywords

cattle feeding profitgrid pricingrobust regressionL15Q12Q13
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 1 , April 2003 , pp. 97 - 106
Copyright
Copyright © Southern Agricultural Economics Association 2003

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