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Marketing Fed Cattle Based on Expectations of the Underlying Carcass Value Dynamics

Authors :
Randall D. Little
Kalyn T. Coatney
Thu Dinh
Josh G. Maples
Madeline Poss
Daniel Rivera
Source :
Journal of Agricultural and Applied Economics. 54:28-52
Publication Year :
2021
Publisher :
Cambridge University Press (CUP), 2021.

Abstract

Fed cattle profitability is determined by complicated dynamic processes of body growth, carcass development, and seasonal prices. A structural model is constructed to contend with all these dynamic processes to predict optimal market timing. Informed simulations are conducted and compared to those observed in the data, as well as to a previous model ignoring the evolution of carcass value. The results indicate that significant improvements to profitability are attainable with the new method. The results also indicate the opportunity cost of not accounting for carcass value, even with error, is more severe than when these dynamics are ignored.

Details

ISSN :
20567405 and 10740708
Volume :
54
Database :
OpenAIRE
Journal :
Journal of Agricultural and Applied Economics
Accession number :
edsair.doi...........f25b46ffa884b4e7033c5a1c1d928d4c
Full Text :
https://doi.org/10.1017/aae.2021.27