 The Impact of Cattle Hide and Byproduct Values on Cattle Price Declines in 2020Gary W. Brester and Kole Swanser No 309621, MSU Staff Papers from Montana State University > Department of Agricultural Economics and Economics Abstract: Several published studies indicate that cattle hide values and edible and inedible cattle slaughtering byproducts influence cattle prices. Most cattle processing byproducts are exported. The worldwide COVID-19 pandemic interrupted many international trade supply chains and fed cattle futures prices declined from $127.43/cwt in January 2020 to $83.83/cwt at the end of April 2020. Much of this decline was the result of uncertainties in supply chains, reductions in the demand for beef by the HRI sector, and disruptions in international trade. In addition, lower hide and edible/inedible byproduct values also contributed to lower cattle prices. We show that 0.6% (or $0.54/cwt) of the reduction in cattle prices was associated with lower non-hide byproduct values. A larger reduction (6.5% or $6.30/cwt) was associated with a 50.3% decline in hide values. Keywords: Agribusiness; Demand and Price Analysis; Livestock Production/Industries; Risk and Uncertainty (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:msaesp:309621 Access Statistics for this paper More papers in MSU Staff Papers from Montana State University > Department of Agricultural Economics and Economics Contact information at EDIRC. |
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