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Quality Risk and Profitability in Cattle Production: A Multivariate Approach AgEcon
Belasco, Eric J.; Schroeder, Ted C.; Goodwin, Barry K..
This study evaluates quality, production, and price risk within the context of overall profit variability in fed cattle production. The approach used offers a flexible way to estimate a large system of equations with more than three jointly related censored outcomes. Trade-offs between quality and yield grade levels and production measures, such as average daily gain and feeding efficiency, are evaluated. Simulation procedures are used to assess the impact of quality risk on overall profit variability. Results make an important contribution to existing research by explaining why price signals through grid quality grade premiums may not generate intended producer responses.
Tipo: Journal Article Palavras-chave: Censoring; Copula; Fed cattle; Grid pricing; Multivariate; Quality risk; Livestock Production/Industries.
Ano: 2010 URL: http://purl.umn.edu/97854
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The Economics of Testing for Biotech Grain: Application to StarLink Corn AgEcon
Johnson, D. Demcey; Lin, William W..
StarLink corn, a variety not approved for human use, disrupted the marketing system in 2000 because of inadvertent commingling. This paper provides an overview of the economics of testing grain for biotech content. What are the risks facing buyers and sellers, and how are these influenced by testing protocols? How do market premiums and discounts, testing costs, and prior beliefs affect the incentives to test? A conceptual model is developed in which sellers choose whether to pre-test grain prior to shipment. Through simulation analysis, we illustrate the impact of market premiums and other variables on testing incentives and buyer risk.
Tipo: Journal Article Palavras-chave: Biotechnology; Grain marketing; Quality risk; StarLink; Testing; Crop Production/Industries.
Ano: 2005 URL: http://purl.umn.edu/31220
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