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Examining Packer Choice of Slaughter Cattle Procurement and Pricing Methods

Published online by Cambridge University Press:  15 September 2016

Oral Capps Jr. ,
H. Alan Love ,
Gary W. Williams  and
Wendi L. Adams
Oral Capps Jr.
Affiliation:
Department of Agricultural Economics, Texas A&M University
H. Alan Love
Affiliation:
Department of Agricultural Economics, Texas A&M University
Gary W. Williams
Affiliation:
Department of Agricultural Economics, Texas A&M University
Wendi L. Adams
Affiliation:
American Express Corporation
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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.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 28 , Issue 1 , April 1999 , pp. 11 - 25
Copyright
Copyright © 1999 Northeastern Agricultural and Resource Economics Association 

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