livestock production, cattle pricing, livestock markets, slaughter cattle
A weekly comparative marketing study of above-average and below-average quality slaughter cattle was conducted over a 154 week time period (Jan 1997 to Dec 1999). Two data sets containing carcass information on 1500 head of fed cattle were randomly selected from a data set containing carcass information on 2590 steers. Weekly average price per cwt. was calculated for both pens using two different pricing systems: a) the dressed weight pricing system; and b) the Agricultural Marketing Service grid pricing system. The empirical evidence indicates that over the 154 week period: a) the above-average quality carcass data set received a higher average price per cwt. under the grid pricing system; b) the below-average quality carcass data set received a higher average price per cwt. under the hot carcass weight pricing system; and c) the weekly average grid price per cwt. decreased relative to the weekly average hot carcass weight price per cwt. for the below-average quality carcass data set during this time period.
Department of Economics, South Dakota State University
Number of Pages
Fausti, Scott and Qasmi, Bashir, "Grid Pricing Versus Average Pricing for Fed Cattle: Where is the Incentive" (2000). Economics Staff Paper Series. 142.