Grid Marketing and Beef Carcass Quality: A Discussion of Issues and Trends

Scott William Fausti (), Bashir Qasmi () and Matt Diersen ()
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Bashir Qasmi: Department of Economics, South Dakota State University
Matt Diersen: Department of Economics, South Dakota State University

No 80003, Staff Papers from South Dakota State University, Department of Economics

Abstract: Beef industry data suggest that improvements in carcass yield and quality grades have stagnated recently. Empirical analysis, based on USDA market reports, indicates that the share of steer slaughter volume marketed on a grid is less than industry estimates and the growth in market share has stagnated. Trend analysis of market share suggests that grid pricing has become an important marketing channel, but has not become the dominant marketing channel. The lack of industry progress toward achieving the carcass quality goals suggests that grid pricing has not captured the level of market share needed to realize the goals envisioned for it as a value based marketing system.

Keywords: cattle pricing; grid pricing; farm policy (search for similar items in EconPapers)
JEL-codes: Q18 Q13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mkt
Date: 2008-06
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