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The financial risks associated with cattle feeding have increased substantially in recent years. Returns have been highly volatile and frequently low. Cattle feeders have available a number of marketing alternatives which they can use to help reduce price risks for major inputs such as corn and feeder cattle and for the final production of fed cattle. These alternatives include futures markets for these 3 commodities as well as options markets for corn and fed cattle. However, with the numerous marketing alternatives available to the producer the marketing decision can be complex. One tool that can aid the producer in making marketing decisions is price forecasts;Monthly price forecasts were developed for corn, feeder cattle, and fed cattle using several different techniques including: econometric models, ARIMA models, naive forecasts, expert opinion, and composites of these. These forecasts were analyzed both statistically for their accuracy and economically for their ability to signal market transactions that would reduce the risks and increase the profitability associated with cattle feeding. Hedging strategies for corn, feeder cattle, and fed cattle and options strategies for fed cattle were simulated over the July 1978 through 1985 period. The results of a mean-variance analysis indicated that forecast-signaled corn and feeder cattle hedges were able to increase profitability though not decrease variability of returns. Fed cattle forecast-signaled hedging strategies when combined with the feeder cattle and corn hedges resulted in both increased average returns and decreased variability. However, simple profit margin signaled hedges for fed cattle performed slightly better than the forecast-signaled hedges.

The structure of the beef industry has changed dramatically in this century. This phenomenon has given rise to much controversy concerning the competitiveness of the industry in both the economics literature and the courts;One of the key issues in industry organization and antitrust issues is the definition of product and geographic markets. This dissertation attempts three statistical procedures to define markets, each with increasing demands for market information. A fourth procedure is also outlined;Finally, a study of the beef packing industry is conducted within the structure-conduct-performance paradigm, given previously defined product and geographic markets. It was concluded that, although there is presently no evidence of undue monopoly power, the industry may be able to exploit their sizeable market share if they if certain technologies are forthcoming. For example, if beef packers begin to develop branded products for retail, they may be able to influence price at the retail level.

ObjectivesFed cattle slaughter facilities often have cattle delivered to the facility with the intention to hold the cattle overnight. As required by USDA FSIS, cattle that are held overnight at the harvest facility are required to have lying space in pens. The current guideline in industry is 1.86 m² per animal at an estimated live weight of 544.31 kg. However, cattle weights have increased over time while the space to lie down has remained constant. Materials and MethodsThis field observation was designed to determine if 1.86 m² is enough space for a Bos taurus steer or heifer, with no Bos indicus or Holstein influence, to lie down, with an assumed live weight of 544.31 kg. This field observation evaluated space requirements for cattle that varied in average weight from 521.63 kg to 717.13 kg. It was hypothesized that the pen space requirements would not differ based on average live weight of the cattle. This field observation utilized a random incomplete design over a 5 d period. Pens were selected for adequate lighting, distance away unloading docks, and distance away from entrance to the harvest facility. The pen dimensions were measured before daily production began and average weights of the cattle were obtained from the harvest facility scale house. Once the selected overnight pens were filled with a mixture of British and continental bred cattle, cameras were placed on the catwalk to capture video and photographs of the cattle lying down between 0200 h and 0400 h each d. Video and photographs were taken with a remote control so that the cattle were not disturbed by individuals on the catwalk. ResultsIn this field observation, 1584 cattle were observed and it was determined that as the weight of the cattle increased the space allocation needed to be increased to have enough space for all cattle to lie down. The space allocations estimated were a 544.31 kg animal required 1.86 m² per animal, a 589.67 kg animal required 1.95 m² per animal, a 635.03 kg animal required 2.04 m² per animal, and a 680.39 kg animal required 2.14 m² per animal. Space requirements did differ as average weight of the cattle increased. ConclusionFurther observations are needed to fully determine the effect that average live weight has on pen space requirements of cattle at slaughter facilities.

Fed cattle closeouts from the years 2007-2009 were analyzed to measure the difference in performance of cattle fed in open lots compared to cattle fed in bedded confinement buildings. Cattle fed in bedded confinements had better feed conversions and heavier finish weights then cattle fed in open lots. Cattle fed in bedded confinements also tended to have better daily gains then cattle fed in open lots.

and Implications Real-time ultrasound can be used to make marketing decisions for fed cattle. Of primary importance are evaluations for intramuscular fat, subcutaneous fat, and live weight. This information can then be used to stratify cattle into marketing groups ranging from need/ready to sell immediately (i.e. too heavy, too fat, or already reached Choice grade) to not ready for market until after feeding for several additional days (i.e. 35 days). Real-time ultrasound can also be used to identify cattle that are approaching the threshold of a higher quality grade. These cattle should benefit from additional days on feed, and should warrant further premiums in most market situations. Conversely, cattle that are near the upper end of the fat cover limit for a particular yield grade may move to the next higher yield grade with additional time on feed and be discounted. Introduction Decision support systems are necessary for producers to make informed decisions about how to manage cattle for marketing decisions. This report is designed to describe the protocol used for Iowa State University research cattle to determine when cattle should be harvested.