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Hog Marketing Practices and Competition Questions AgEcon
Lawrence, John D..
Tipo: Journal Article Palavras-chave: Livestock Production/Industries; Marketing; Q11; Q13.
Ano: 2010 URL: http://purl.umn.edu/94759
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The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions AgEcon
Bulut, Harun; Lawrence, John D..
After controlling a variety of feeder cattle characteristics and market and sale conditions in Iowa feeder auctions, the price premiums for preconditioning claims (vaccinations and minimum 30 days of weaning) with and without third-party certification (TPC) are estimated as $6.12/cwt and $3.35/cwt, respectively. These premiums differ statistically (p<0.0001), and their difference exceeds the average participation cost of TPC ($1/cwt). This indicates that TPC is valued in the market to credibly signal preconditioning investment under asymmetric information.
Tipo: Journal Article Palavras-chave: Asymmetric information; Feeder cattle auctions; Quality; Signalling; Third-party certification; Q11; Q12; Q13; C23.
Ano: 2007 URL: http://purl.umn.edu/37052
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Valuing Public Price Reporting: The Iowa Experience AgEcon
Lawrence, John D.; Shaffer, John A.; Hayenga, Marvin L..
Auction market users and operators were surveyed regarding their source and use of livestock auction price information. Although important for marketing and to a lesser extent production decisions, only 30 percent preferred publicly reported prices over reports from market operators or other sources. The small share of market users willing to pay for public price reports suggests acceptable substitutes are available. Based on these results it is unlikely that user fees will be able to replace the current level of public support for auction market price reporting.
Tipo: Journal Article Palavras-chave: Price reporting; Willingness to pay; Agribusiness; Demand and Price Analysis.
Ano: 1996 URL: http://purl.umn.edu/90376
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ESTIMATING THE VALUE OF SOURCE VERIFICATION OF FEEDER CATTLE AgEcon
Lawrence, John D.; Yeboah, Godfred.
Source-verified (SV) feeder cattle auctions were held in Bloomfield, Iowa, each October, November, and December from 1997-2000. This study compares price data from these SV auctions to traditional auctions at the same location to determine whether a premium exists for SV feeder cattle. Hedonic pricing models were estimated to evaluate the price effects of lot characteristics, market forces, and type of market (SV versus regular sale). The SV cattle were sorted and pooled into large lots. The larger lot size, consistent with early research, earned large price premiums. After accounting for lot size, the SV premium for lighter cattle (< 650/600-pound steers/heifers) was estimated at $1.30/cwt, and was significant. The SV premium over and above lot size...
Tipo: Journal Article Palavras-chave: Auction; Cattle; Hedonic pricing model; Markets; Source-verified auction; Livestock Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/14722
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Meat Slaughter and Processing Plants’ Traceability Levels Evidence From Iowa AgEcon
Bulut, Harun; Lawrence, John D..
In the United States (U.S.), there is no uniform traceability regulation across food sector. Food and Drug Administration (FDA) implemented one-step back and one-step forward traceability over the industries under its jurisdiction. U.S. Department of Agriculture (USDA), which oversees meat, poultry and egg production, requires some record keeping as part of food safety regulation. Particularly, a two-part-system has developed; live animal traceability and meat traceability with slaughter and processing plants in between. This paper studies the question of whether (and if so how) meat plants’ traceability levels vary with respect to the following factors; product specific (credence versus experience and search attributes, branded versus commodity meat,...
Tipo: Conference Paper or Presentation Palavras-chave: Traceability; Food safety; Quality assurances; Animal ID; RFID.
Ano: 2007 URL: http://purl.umn.edu/37576
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Meat Slaughter and Processing Plants’ Traceability Levels: Evidence From Iowa AgEcon
Bulut, Harun; Lawrence, John D..
Based on an econometric analysis of the data obtained from a survey of meat plants ( ) in Iowa in summer 2007, this paper identifies the factors impacting the meat plants’ voluntary adoption of forward and backward traceability activities. The results suggest that the ownership type (corporate versus independent) and operations type (slaughtering versus not) matter rather than the size and meat type produced (beef, pork, or poultry) as suggested in the previous surveys. Furthermore, food safety activities appear to be complementary to traceability activities. The findings may assist ongoing regulatory efforts in implementing traceability in U.S. in the near future.
Tipo: Working or Discussion Paper Palavras-chave: Country of origin labeling; Food safety; Multiple imputation method; National animal identification system; Ordered logistic regression; Quality assurances; Traceability; Agribusiness; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries; Q13; Q18; C21; C35.
Ano: 2008 URL: http://purl.umn.edu/6135
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Differences in Prices and Price Risk Across Alternative Marketing Arrangements Used in the Fed Cattle Industry AgEcon
Muth, Mary K.; Liu, Yanyan; Koontz, Stephen R.; Lawrence, John D..
Information on prices and price risk differences across marketing arrangements aids fed cattle producers in making choices about marketing methods. As part of the congressionally mandated Livestock and Meat Marketing Study, we investigated fed cattle price and price risk differences across marketing arrangements. The analysis uses data representing cattle purchased by 29 large beef packing plants from October 2002 through March 2005. Results indicate that marketing agreements offered the best tradeoff between price level and price risk. Forward contracts had the lowest average yet highly volatile prices. Auction barn prices were higher than other methods but also the most volatile.
Tipo: Journal Article Palavras-chave: Alternative marketing arrangements; Fed cattle; Hedonic; Price risk; Price volatility; Prices; Livestock Production/Industries; Marketing; Risk and Uncertainty.
Ano: 2008 URL: http://purl.umn.edu/36711
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GRADER BIAS IN CATTLE MARKETS? EVIDENCE FROM IOWA AgEcon
Hueth, Brent; Lawrence, John D.; Marcoul, Philippe.
Participants in U.S. markets for live cattle increasingly rely on federal grading standards to price slaughtered animals. This change is due to the growing prominence of “grid” pricing mechanisms that specify explicit premiums and discounts contingent on an animal's graded quality class. Although there have been recent changes in the way cattle are priced, the technology for sorting animals into quality classes has changed very little: human graders visually inspect each slaughtered carcass and call a “quality” and “yield”grade in a matter of seconds as the carcass passes on a moving trolley. There is anecdotal evidence of systematic bias in these called grades across time and regions within U.S. markets, and this paper empirically examines whether such...
Tipo: Working or Discussion Paper Palavras-chave: Cattle markets; Grader bias; Quality measurement; Livestock Production/Industries.
Ano: 2004 URL: http://purl.umn.edu/18474
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ALTERNATIVE MARKETING STRATEGIES FOR FEEDER PIG FINISHERS: FUTURES, OPTIONS, AND SIMPLE DECISION RULES AgEcon
Lawrence, John D.; Roth, Jennifer.
Tipo: Working or Discussion Paper Palavras-chave: Livestock Production/Industries; Marketing.
Ano: 1991 URL: http://purl.umn.edu/13398
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Economic Analysis of Increased Levels of Intramuscular Fat in Pork: Producer and Industry Opportunities AgEcon
Kliebenstein, James B.; Ibarburu, Maro A.; Lawrence, John D.; Baas, Thomas J.; Prusa, Kenneth; Hanson, Kathy; Fedler, Chris; Wilson, Doyle.
Ultrasound technology is available for accurately measuring intramuscular fat (IMF) in live pigs. This report provides information on the costs for pig producers and processors to implement this technology and what consumers are willing to pay for pork with improved levels of intramuscular fat. About half the participants in the willingness to pay study preferred the high IMF chop. They paid a premium of 25 percent over the low IMF chop.
Tipo: Conference Paper or Presentation Palavras-chave: Ultrasound technology; Measure intramuscular fat live pigs; Pig producer cost; Pig processor costs; Consumer willingness to pay; Agribusiness; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Farm Management; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries; Marketing.
Ano: 2010 URL: http://purl.umn.edu/60919
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GRADER BIAS IN CATTLE MARKETS? EVIDENCE FROM IOWA AgEcon
Marcoul, Philippe; Lawrence, John D.; Hueth, Brent.
Participants in U.S. markets for live cattle increasingly rely on federal grading standards to price slaughtered animals. This change is due to the growing prominence of "grid" pricing mechanisms that specify explicit premiums and discounts contingent on an animal's graded quality class. Although these changes alter the way cattle are priced, the technology for sorting animals into quality classes has changed very little: human graders visually inspect each slaughtered carcass and call a "quality" and "yield" grade in a matter of seconds as the carcass passes on a moving trolley. There is anecdotal evidence of systematic bias in these called grades across time and regions within U.S. markets. We examine whether such claims are supported in a sample of...
Tipo: Conference Paper or Presentation Palavras-chave: Marketing.
Ano: 2006 URL: http://purl.umn.edu/21123
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LESSONS LEARNED FROM THE CANADIAN CATTLE INDUSTRY: NATIONAL ANIMAL IDENTIFICATION AND THE MAD COW AgEcon
Lawrence, John D.; Strohbehn, Daryl; Loy, Daniel D.; Clause, Reginald J..
Canada implemented a national cattle identification system led and developed by the industry. Initially a voluntary program beginning in July 2001, it became mandatory in July 2002 and achieved 92-95 percent compliance by that fall. The system was low cost to initiate and operate and only requires that animals be tagged before leaving the farm of origin and the tags are read when the animal dies or is exported. The national ID system did not protect Canadian cattle from a sole case of BSE, or Mad Cow Disease, found in the spring of 2002, but it did help speed and lend confidence to the investigation. While the ID system was the objective of the study, the team also report on how markets and an industry behave in a crisis.
Tipo: Working or Discussion Paper Palavras-chave: Animal identification; Traceability; BSE; Food Consumption/Nutrition/Food Safety; Production Economics.
Ano: 2003 URL: http://purl.umn.edu/18686
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EXTENSION'S RESPONSE TO UNDERSTANDING EVOLVING LIVESTOCK MARKET SIGNALS: IOWA'S EXPERIENCE AgEcon
Lawrence, John D..
Tipo: Conference Paper or Presentation Palavras-chave: Livestock Production/Industries; Teaching/Communication/Extension/Profession.
Ano: 2000 URL: http://purl.umn.edu/36352
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Value of Single Source and Backgrounded Cattle as Measured by Health and Feedlot Profitability AgEcon
Abidoye, Babatunde O.; Lawrence, John D..
Commingling cattle in the feedlot increases the odds of cattle getting sick. However, backgrounded cattle are less susceptible to diseases which allow the generalizing statements like "backgrounding is just like single source". Using data from over 15,000 cattle fed in 12 Iowa feedlots, we show that although backgrounded cattle do better than preconditioned cattle commingled in the feedlot, they have poorer carcass quality, health, and performance than single source cattle. Backgrounded cattle should be discounted $8.24/head relative to single source, and only received a small premium over multi-source preconditioned cattle though not significantly different.
Tipo: Conference Paper or Presentation Palavras-chave: Livestock Production/Industries.
Ano: 2006 URL: http://purl.umn.edu/19008
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PRODUCTION AND MARKETING CHARACTERISTICS OF U.S. PORK PRODUCERS, 2000 AgEcon
Lawrence, John D.; Grimes, Glenn.
Tipo: Working or Discussion Paper Palavras-chave: Livestock Production/Industries; Marketing.
Ano: 2001 URL: http://purl.umn.edu/18243
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Quality Assurance "Down Under": Market Access and Product Differentiation AgEcon
Lawrence, John D..
Australia and New Zealand are major beef producing countries and major beef exporters. Unlike the case in the United States, where less than 10 percent of beef is exported, approximately 60 percent of Australia’'s and 85 percent of New Zealand’'s beef production is exported. Because of their dependency on a diverse set of export customers, these two countries are developing quality assurance programs that differentiate their beef in the global market and assure individual customers that the product is safe and meets customer needs. The Australian government and beef industry have invested in innovative identification, grading, and quality assurance systems that can be used by processors, producers, and supply chains. New Zealand relies upon individual...
Tipo: Working or Discussion Paper Palavras-chave: Beef; Quality assurance; Traceability; Value-added; Marketing.
Ano: 2002 URL: http://purl.umn.edu/18707
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Information Transmission in Cattle Markets: A Case Study of the Chariton Valley Beef Alliance AgEcon
Hueth, Brent; Lawrence, John D..
The declining share of beef in total U.S. meat consumption has motivated industry-wide efforts to improve average beef quality through more effective coordination among the various market participants. Increased use of explicit "grid" pricing mechanisms over the last decade represent initial efforts at improved coordination. More recent efforts include animal-specific carcass data collection, with subsequent transmission to feeders and the relevant cow/calf operations, and improved "source verification" procedures aimed at (among other things) reducing the overall cost of medical treatment for live animals. None of these organizational innovations is costless, and indeed a number of significant barriers must be overcome before more widespread adoption of...
Tipo: Conference Paper or Presentation Palavras-chave: Livestock Production/Industries.
Ano: 2003 URL: http://purl.umn.edu/21989
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ELEMENTS OF CATTLE FEEDING PROFITABILITY IN MIDWEST FEEDLOTS AgEcon
Lawrence, John D.; Wang, Zhi; Loy, Daniel D..
Conventional wisdom and earlier research have concluded that cattle feeding profitability is more determined by feeder and fed cattle prices than by animal performance. This study examined cross-sectional and time-series data from over 1600 pens of cattle in more than 220 feedlots in the upper Midwest where weather and lot conditions are thought to influence feedlot profitability. In addition to input and output prices and animal performance, other factors found to significantly impact cattle feeding profitability were sex, placement weight, facility design, and to a lesser extent placement season.
Tipo: Journal Article Palavras-chave: Cattle feedlots; Probability; Risk; Livestock Production/Industries.
Ano: 1999 URL: http://purl.umn.edu/15377
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A Limited Information Bayesian Forecasting Model of the Cattle SubSector AgEcon
Abidoye, Babatunde O.; Lawrence, John D..
The first step towards forecasting the price and output of the cattle industry is understanding the dynamics of the livestock production process. This study follows up on the Weimar and Stillman (1990) paper by using data from 1970 to 2005 to estimate the parameters that characterizes the cattle output supply. The model is then used to estimate forecast values for the periods 2006 and 2007. Bayesian limited information likelihood method is used to estimate the parameters when endogeneity exists between these variables. The forecasting ability of the model for a two-step ahead forecast for majority of the variables are relatively good and test statistic of the forecast are reported.
Tipo: Conference Paper or Presentation Palavras-chave: Cattle; Bayesian; Forecasting; Inventory; Slaughter; Agribusiness; Agricultural Finance; Financial Economics; Livestock Production/Industries; Marketing; Production Economics; Research Methods/ Statistical Methods.
Ano: 2009 URL: http://purl.umn.edu/53051
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Impacts of Alternative Marketing Agreement Cattle Procurement Volumes on Packer Costs: Evidence from Plant-Level P&L Data AgEcon
Koontz, Stephen R.; Muth, Mary K.; Lawrence, John D..
It has been argued that access to captive supply cattle improve the economic efficiency of beef packing facilities. However, this argument has not been subject to hypothesis testing. This work models the cost efficiencies associated with captive supplies or cattle we refer to as being sourced through alternative marketing agreements (AMAs). We find that slaughter and processing costs are lower ceteris paribus for AMA cattle than for cash market cattle. We find that plants that slaughter cattle from AMA sources operate at higher monthly volumes ceteris paribus and lower average costs per head. And we find that plants that slaughter cattle from AMA sources have more predictable volumes ceteris paribus and have lower average costs per head. If AMAs were...
Tipo: Conference Paper or Presentation
Ano: 2007 URL: http://purl.umn.edu/37559
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