grid pricing, national beef quality audit, public livestock price reporting, beef carcass quality
Beef industry data suggest that beef carcass yield and quality grades have shown little improvement over the last six years. Empirical analysis, based on USDA public market reports, indicates that the share of steer slaughter volume marketed on a grid is less than industry estimates and the growth in grid market share of total steer slaughter is stagnate. Trend analysis of grid market share and carcass quality suggests that grid pricing has not made sufficient progress in achieving the goals envisioned for it as a value based marketing system. We conclude additional research on producer resistance to selling on a grid is needed.
Department of Economics, South Dakota State University
Number of Pages
Fausti, Scott; Qasmi, Bashir; and Diersen, Matthew, "The Efficacy of the Grid Marketing Channel for Fed Cattle" (2008). Economics Staff Paper Series. 190.