Author: Melissa Gale Short McKendree
Publisher:
ISBN:
Category :
Languages : en
Pages :
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The U.S. beef industry is comprised of multiple, vertically connected segments. Beginning at the cow-calf level, cattle move through the industry to backgrounding/stocker operations, feedlots, and then to beef packers. The beef produced then continues to move through the marketing channel from beef packers to wholesalers and on to multiple final consumer outlets. Each level of the beef industry has both distinct and related economic issues. This dissertation contains three essays on beef cattle economics. Essay 1 focuses on price and animal health risk management at the feedlot level. Essays 2 and 3 explore how upstream demand changes impact primary beef suppliers. The objective of Essay 1 is to determine if feedlot operators manage price risk and animal health risk as two separate and independent risks or if they manage them jointly. The animal health attribute of interest is purchasing feeder steers from a single known source versus an auction with unknown background. The output price risk mitigation tools are futures contracts, forward contracts, other, and accept cash price at time of sale. Primary data is collected using an online survey administered to feedlot operators. Participants are placed in forward looking, decision making scenarios utilizing a split-sample block design. Evidence of a relationship between animal health risk and output price risk management is mixed. Ricardian rent theory (RRT) is tested in Essay 2 to determine if complete pass-through occurs from fed cattle and corn prices to feeder cattle prices. Monthly price data from December 1995 to December 2016 is used. Based on RRT, surplus rents should pass through the market to the holder of the scarcest resource. In cattle markets, feeder calves are the scarcest, widely traded resource and thus gains and losses at the feedlot theoretically pass-through to feeder cattle prices. The hypothesized pass-through rates suggested by RRT is calculated using monthly production data from the Focus on Feedlots data series. The regression pass-through estimates are tested against the hypothesized RRT pass-through. In many models, the estimated pass-through rate is statistically greater than the RRT hypothesized pass-through rate. Thus, when fed cattle or corn prices change, these changes are more than fully passed to cow-calf producers through the feeder cattle price. Evidence is found of asymmetric pass-through during times of herd expansion versus contraction. Essay 3 provides a quantification of how changes in retail and export beef demand are transmitted to different members of the beef industry. Understanding how information is transmitted from primary consumer demand through the supply chain is key for long-term prosperity of the U.S. cattle industry. However, empirical applications quantifying how demand signals are transmitted through vertically connected industries are limited. Using both naïve and forward looking price expectations, a four equation system of inverse demand and supply equations for live and feeder cattle is estimated. Using retail and export beef demand indices, the impacts of 1% change in retail or export demand on live cattle and feeder cattle prices are quantified.
Author: Amber Kate Oerly
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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The beef supply chain in the United States consists of many actors from the farm to retail level; with approximately 730,000 beef farms moving cattle to feedlots to slaughter plants and finally to various wholesale, retail, and export channels (USDA NASS, 2017). Thus, the U.S. beef industry is known to be one of the most complex segments of the agricultural sector. Periods of increased volatility and uncertainty related to economic, environmental, and social factors have further highlighted the dynamic nature of the U.S. beef industry and supply chain. This thesis contains two articles. The first article analyzes cowherd supply response in the United States and 14 major cow-calf states in the country. The second article estimates wholesale beef demand parameters. In Article 1, partial-adjustment supply models are estimated to quantify how changes in feeder cattle prices impact beef cow inventories at state and national levels. In Article 2, seeming unrelated regression (SUR) models are estimated to obtain updated wholesale beef demand elasticities. Both Articles 1 and 2 provide updated research related to two current knowledge gaps in the U.S. beef industry. Findings in both articles support the notion that price sensitivity may be decreasing in the U.S. beef-cattle industry.
Author: Moisés de Andrade Resende Filho
Publisher:
ISBN:
Category :
Languages : en
Pages : 286
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Category :
Languages : pt-BR
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The first essay inquires into the economic: value and the optimal expected traceback rate of success for a trace-ability system from the cattle slaughter room through the fabrication floor with a case study of injection-site lesions in fed cattle in the US. The method developed by Grossman and Hart (1983) is adapted to model and solve a Principal-Agent model with beef traceability. By maintaining the identity of the fed cattle suppliers (Agents) and animal ID attached to retail beef cuts with certain probability, a traceability system makes incentive mechanisms feasible. First-best action may be induced by meat packers (Principal) with incentive mechanisms created with a traceability system with a low expected traceback rate of success. This result was not sensitive to changes in the way traceability systems' costs were; estimated. Further, a traceability system may have no value when risk averse feedlot owners can do little to affect the frequency of injection-site lesions in fed cattle. Finally, the Principal-Agent model developed in the present study presents potential to be employed in studying other problems in which identity preservation is a concern. The second essay investigates the economic value of the National Animal Identification System (NAIS) in the US. It is assumed that benefits may come from how the NAIS will affect the final consumer's food safety concerns about eating meat. Generalized almost ideal and quadratic almost ideal demand systems are estimated incorporating food safety indices for beef, pork and poultry. It is found that food safety impacts upon the final demand for meat are small and do not present lagged effects. Three scenarios are constructed on the basis of hypothesized impacts of the NAIS on consumers' food safety concerns about meat. Differences in predicted total revenue for beef, pork and poultry between scenarios are used as gross measures of the benefits of the NAIS. If most benefits with the NAIS are expected to come from demand shifts up, the US government will need to subsidize its implementation and maintenance to make the NAIS economically feasible.
Author: John Peirce
Publisher: Sunstone Press
ISBN: 1611394082
Category : Business & Economics
Languages : en
Pages : 220
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Whether or not you are a beef consumer, are you satisfied that you know all you should about this product? Usual sources of information might, to a very large degree, not give adequate information about beef. Some of these sources might be biased—either f
Author: Basu Deb Bhandari
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Chia-Hsing Wang
Publisher:
ISBN:
Category : Brand name products
Languages : en
Pages :
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Abstract: I simulate growth and quality changes for pens of cattle and derive the value of pre-harvest sorting and genetic selection under grid pricing in a deterministic setting featuring animals with heterogeneous growth and quality maturation paths. The key findings are: 1) both pre-harvest sorting and increased genetic uniformity could substantially affect an individual cattle feeder's net revenues; 2) one could expect higher marginal revenue gains from the genetic uniformity than from pre-market sorting; 3) both methods exhibit diminishing marginal returns and 4) aggregate beef supply may increase as improving uniformity typically leads to later optimal marketing dates and, hence, heavier animals at slaughter. Post-slaughter quality-based pricing of cattle is increasingly common. This quality, however, is dependent upon unobservable quality characteristics of the feeder cattle used as inputs and unverifiable effort exerted by feedlot managers. Through stochastic simulation I construct incentive compatible quality risk-sharing contracts based upon final grid-quality schedules in feeder cattle markets. Darby and Karni suggest branding as means of solving the potential fraudulence problems in the credence good market. Umbrella branding is a common marketing practice to promote new product and bond the product quality to the brand reputation. However, while umbrella branding works well in the experience good market, no evidence shows it would work in the credence good markets. I set up a framework for discussing the effect of umbrella branding on the quality provision of credence good. The results show that brand reputation, product similarity, probability of detection, punishment severity, and exogenous quality noise all play important roles in determining a firm's decision on umbrella branding and fraud.
Author: Andrea M. Brocklebank
Publisher: Nova Publishers
ISBN: 9781604561210
Category : Business & Economics
Languages : en
Pages : 198
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This book provides an in-depth analysis of the factors providing the impetus for change in the North American beef industry and how the industry is responding to the challenges. The beef industry story provides lessons for other agri-food industries attempting to respond to rapidly evolving food markets. The book provides important insights into the process whereby industries respond to a rapidly changing marketplace and, in particular, industries with complex supply chains consisting of many actors. The agri-food industry provides an excellent example of a market that is evolving rapidly in ways few would have contemplated even a few years ago. The beef industry has an exceedingly complex supply chains that must co-ordinate complex resources such as genetics, extensive grazing, precision feeding strategies, high tech processing, cold chain logistics and food safety protocols. The interaction between changing demands and the beef industry's responses to an evolving marketplace provide the focus of the book. The book examines the process whereby the beef industry prior is making the transition from a supplier of commodities to a provider of differentiated products with attributes tailored to individual consumers. The book then provides a theoretical basis for the examination of evolving supply chains and a means by which the industry's response can be assessed using modern quantitative methods. Case studies are developed to dig deeper into the transition the beef industry is experiencing. Insights are drawn for other agri-food sectors facing similar challenges. Ranchers have always had a special place in the cultural heritage that defines North Americans and beef has been the premium product in the dietary hierarchy in traditional North American cuisine. As urban dwellers who are generations removed from agricultural production now overwhelmingly make up the consumer base, the image of cattle producers is buffeted by new customer priorities such as animal welfare, environmental sustainability and the ability to determine the place of origin of their food. As the proportion of food consumed at home declines and consumers seek to expand their range of culinary experiences, food from cultures where beef is not a mainstay of the diet have gained more prominence. These restaurant experiences are increasingly being reflected in the near table ready products on offer in supermarkets. Consumers are still likely to enjoy a good steak, other traditional beef products now struggle for consumers. The implications of the response of the beef industry to the changes buffeting the sector goes beyond strictly commercial concerns and will determine the place of beef and the industry's participants in the evolving North American culture.
Author: Hikuepi B. Katjiuongua
Publisher:
ISBN: 9781124855646
Category : Beef
Languages : en
Pages : 127
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"The first essay (chapter 2) focuses on cattle farmers' participation in the international beef export market ... In the second essay (chapter 3), the study estimates EU import demand for Namibian beef in response to the (EPA) agreement and its alternatives, the standard generalized system of preferences (GSP) and two enhanced GSP options. Specifically, it measures the impact of the trade agreements on the quantity and import composition of beef imports from Namibia to the EU market."--Page 4.
Author: Richard Cantillon
Publisher: Ludwig von Mises Institute
ISBN: 1610164601
Category : Commerce
Languages : en
Pages : 254
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