Examining Packer Choice of Slaughter Cattle Procurement and Pricing Methods

Oral Capps, H. Love, Gary Williams and Wendi L. Adams

Agricultural and Resource Economics Review, 1999, vol. 28, issue 1, 11-25

Abstract: Using daily fed cattle purchase transaction records collected by the Packers and Stockyards Program over the period April 1992 to April 1993, we identify characteristics associated with the choices of fed cattle procurement and pricing methods. The methodology involves the use of a multinomial logit model. Regional concentration; processing capacity; number of head per lot; average weight per head; cattle type; yield grade, quarterly grade, seasonality, and distance from packing plants play a significant role in determining the methods of procurement and pricing chosen by packers. The method chosen by packers to procure fed cattle also affects the choice of a given pricing method.

Date: 1999
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Journal Article: EXAMINING PACKER CHOICE OF SLAUGHTER CATTLE PROCURMENT AND PRICING METHODS (1999)
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