Analysis of the efficiency of four marketing methods for slaughter cattle

Dillon M. Feuz, Scott Fausti and John J. Wagner
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Dillon M. Feuz: Department of Economics at South Dakota State University, Postal: Department of Economics at South Dakota State University
John J. Wagner: Department of Animal and Range Science at South Dakota State University, Postal: Department of Animal and Range Science at South Dakota State University

Agribusiness, 1993, vol. 9, issue 5, 453-463

Abstract: Four marketing methods for slaughter cattle were analyzed and examined for pricing efficiency. Profits per head were found to be significantly different under the various marketing methods. Greater price discrimination occurred as carcass information increased. Increased price discrimination led to greater dispersion of profit from one marketing method to another. Different marketing methods appeared to send different production signals to producers. The desires of the consumer for less fat and a high-quality product did not appear to be reaching the producers in the form of profit incentives under the most widely used marketing method. © 1993 John Wiley & Sons, Inc.

Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:9:y:1993:i:5:p:453-463

DOI: 10.1002/1520-6297(199309)9:5<453::AID-AGR2720090504>3.0.CO;2-1

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