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The Impacts of Quality on Cash Fed Cattle Prices

Published online by Cambridge University Press:  28 April 2015

Rodney Jones ,
Ted Schroeder ,
James Mintert  and
Frank Brazle
Rodney Jones
Affiliation:
Department of Agricultural Economics
Ted Schroeder
Affiliation:
Department of Agricultural Economics
James Mintert
Affiliation:
Department of Agricultural Economics
Frank Brazle
Affiliation:
Department of Animal Sciences and Industry at Kansas State University
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Abstract

Quality factors affecting fed cattle prices were examined during a six-month period in southwestern Kansas. Transaction prices were significantly affected by the percentage of cattle expected to grade choice times the choice-to-select carcass price spread, finish uniformity, average weight, dressing percentage, breed, number of cattle purchased by a single packer on a given day, the packer, the feedyard, the day-of-the-week the cattle were sold, and the number of bids received. Asking prices were significantly affected by many of the same factors. Asking and transaction prices reflected approximately 25 percent of the packer value differentials for expected carcass quality grades.

Keywords

fed cattle pricesvalue-based marketing
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 24 , Issue 2 , December 1992 , pp. 149 - 162
Copyright
Copyright © Southern Agricultural Economics Association 1992

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