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Article
Differences in Prices and Price Risk Across Alternative Marketing Arrangements Used in the Fed Cattle Industry
Journal of Agricultural and Resource Economics
  • Mary K. Muth, RTI International
  • Yanyan Liu, The World Bank
  • Stephen R. Koontz, Colorado State University
  • John Lawrence, Iowa State University
Document Type
Article
Publication Version
Published Version
Publication Date
1-1-2008
Abstract

Information on prices and price risk differences across marketing arrangements aids fed cattle producers in making choices about marketing methods. As part of the congressionally mandated Livestock and Meat Marketing Study, we investigated fed cattle price and price risk differences across marketing arrangements. The analysis uses data representing cattle purchased by 29 large beef packing plants from October 2002 through March 2005. Results indicate that marketing agreements offered the best tradeoff between price level and price risk. Forward contracts had the lowest average yet highly volatile prices. Auction barn prices were higher than other methods but also the most volatile.

Comments

This is an article from Journal of Agricultural and Resource Economics 33 (2008): 118. Posted with permission.

Copyright Owner
Western Agricultural Economics Association
Language
en
File Format
application/pdf
Citation Information
Mary K. Muth, Yanyan Liu, Stephen R. Koontz and John Lawrence. "Differences in Prices and Price Risk Across Alternative Marketing Arrangements Used in the Fed Cattle Industry" Journal of Agricultural and Resource Economics Vol. 33 Iss. 1 (2008) p. 118 - 135
Available at: http://works.bepress.com/john-lawrence/64/